Government grants that require performance by the not-for-profit organization are recorded on a cash basis.

Question

Quizplus · Accepted Answer

Government grants that require performance by the not-for-profit organization should be recorded on an accrual basis. This means that the grant revenue is recognized when the organization fulfills all of the obligations or requirements of the grant. Recording the grant on a cash basis would not accurately reflect the organization's performance and could lead to inaccurate financial statements.

Government Grants That Require Performance by the Not-For-Profit Organization Are