A city receives a grant with only a time requirement that is accounted for in a Special Revenue Fund. The city receives $200,000 in the current fiscal year, but the grant proceeds cannot be used until the next fiscal year. The city would recognize $200,000 as intergovernmental grant revenues in the next fiscal year.

Question

Quizplus · Accepted Answer

The grant proceeds received in the current fiscal year initially are reported as a deferred inflow of resources. In the next fiscal year, the Deferred inflow of resources would be debited and Intergovernmental revenues would be credited for $200,000.

A City Receives a Grant with Only a Time Requirement