If a city receives notification of an expenditure-driven grant award and the actual proceeds sixty days prior to the start of the grant period, the entry to record the grant in the Special Revenue Fund would be

Question

Quizplus · Accepted Answer

The grant proceeds received before the grant period starts should be recorded as unearned revenue because the city has not yet met the conditions to recognize it as revenue.

If a City Receives Notification of an Expenditure-Driven Grant Award