CPA · Question 04 · Area I: Financial Reporting
Riverview City received a $300,000 grant from the state government restricted exclusively for road repair and maintenance operations. Any unused funds must be returned to the state at the end of the fiscal year. The city also received $2,000,000 for construction of a new fire station.<br/><br/>How should Riverview City classify these two resources under GASB fund accounting?
Answer options:
Both in the General Fund
Road repair grant in the Special Revenue Fund; fire station proceeds in the Capital Projects Fund
Road repair grant in the Capital Projects Fund; fire station proceeds in the Special Revenue Fund
Both in the Special Revenue Fund
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