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.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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.

 

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