Paul City received payment of two grants from the state during its fiscal year ending September 30, 2016. Grant A can be used to cover any operating expenses incurred during fiscal 2017. Grant B can be used at any time to acquire equipment for the city’s fire department. Should the city report these grants as grant revenues or deferred inflows in its government-wide financial statements for fiscal 2016?
 

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State Grant- Grant Revenue Deferred Inflow a) Grants A and B b) Grant B c) Grant A d) Neither grant Neither grant Grant A Grant B Grants A and B State Grant- Grant Revenue Deferred Inflow a) Grants A and B b) Grant B c) Grant A d) Neither grant Neither grant Grant A Grant B Grants A and B

Answer rating: 100% (QA)

Block grant that can be used to cover any operating expenses incurred during fiscal 2018 ... View the full answer