What determines the treatment of research grants from private foundations? a) Record as revenue when received b) Match expenses with grant conditions c) Defer until project completion. d) Recognize based on time periods

What determines the treatment of research grants from private foundations? a) Record as revenue when received b) Match expenses with grant conditions c) Defer until project completion. d) Recognize based on time periods

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 1MC: A donated fixed asset (from a governmental unit) for which the fair value has been determined should...

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Question

Which is correct?

What determines the treatment of research grants from private
foundations?
a) Record as revenue when received
b) Match expenses with grant conditions
c) Defer until project completion.
d) Recognize based on time periods

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Similar questions

How does the topic of accounting for government grants relate to the topic of accounting for biological assets?
The organization earns and unrealized gain on its permanent endowment. Is this change in net assets with or without donor restrictions?
Answer
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Donor-restricted contributions that have been given to a VHWO for the purpose of purchasing fixed assets should be recorded as increases toa. Unrestricted Net Assets.b. Temporarily Restricted Net Assets.c. Permanently Restricted Net Assets.d. Fund Balance—Restricted.
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What is the primary difference between revenue grants and capital grants in accounting for government grants? A. Revenue grants are recognized in the income statement immediately, while capital grants are recognized as deferred income. B. Revenue grants are used for long-term asset acquisition, while capital grants support day-to-day operating activities. C. Both revenue and capital grants are recognized in the income statement immediately. D. Capital grants are not accounted for in financial statements.