The GASB Preliminary Views on Revenue and Expense Recognition introduces the classification of transactions into Category A and Category B for financial reporting purposes. What distinguishes a Category A transaction from a Category B transaction under the preliminary views? Provide examples of each.

Consider the following transactions:

A state receives federal funding to administer a housing assistance program with strict eligibility criteria.A local government collects property taxes for general operations with no specific restrictions.A public university receives a donation restricted for building a new research facility.A city receives a performance$-$based grant for completing a public park project.

For each transaction, identify whether it should be classified as Category A or B and justify your reasoning. Why might the distinction between Category A and B transactions matter for transparency and accountability in governmental financial statements? Do you think the preliminary views provide sufficient clarity on how to apply these categories consistently across diverse government transactions? Why or why not?