State governments should recognize food stamp revenue

Question

Quizplus · Accepted Answer

State governments should recognize food stamp revenue when they distribute the food stamps to eligible recipients. This is because the food stamps represent funds that will be used to purchase food items and are specifically meant for that purpose. By recognizing the revenue at the point of distribution, states can accurately track how much revenue they are receiving and where it is being allocated. Recognizing revenue at the point of receipt or use would not accurately reflect the financial impact of the food stamp program on the state's budget. The option D is incorrect because food stamps are, in fact, financial resources that are specifically designated for the purchase of food.

State Governments Should Recognize Food Stamp Revenue