$**$Objective Type Question:$**$

Which of the following accurately describes a key aspect of accounting for grants and contracts?

a$)$ Grants and contracts are recorded as revenue when received, regardless of whether the related expenses have been incurred.

b$)$ Revenue from grants and contracts should be recognized when the funds are spent, matching expenses with the related revenue.

c$)$ Grants and contracts are only recorded as revenue upon completion of the project or fulfillment of specific conditions.

d$)$ Accounting for grants and contracts follows the same principles as recording regular business revenues and expenses.