The county received a $1,500,000 restricted grant from the state government to be used to improve its public safety department's communication systems. The county will not meet all eligibility requirements of the grant until next fiscal year, when the county plans to begin incurring expenditures for this purpose. In the current year, the General Fund should report this grant as

Question

Quizplus · Accepted Answer

The grant should be reported as unearned revenues because the county has not yet met the eligibility requirements to recognize it as revenue.

The County Received a $1,500,000 Restricted Grant from the State