A city Enterprise Fund was awarded an operating grant during the fiscal year. Assuming qualifying costs were incurred during the year and all other eligibility requirements were met, the Enterprise Fund will report this grant on the statement of revenues, expenses, and changes in net position as

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Operating grants awarded to an Enterprise Fund, when the qualifying costs are incurred and all other eligibility requirements are met, are reported as nonoperating revenues on the statement of revenues, expenses, and changes in net position. This is because these grants are not generated by the primary, ongoing operations of the fund.

A City Enterprise Fund Was Awarded an Operating Grant During