Question

For grants that require the recipient government to spend money on qualifying items and then request reimbursement, revenues are recognized when ______.

Answer 1

Revenues for grants that require reimbursement are recognized when the recipient government has incurred qualifying expenses and meets the necessary requirements for reimbursement.

Step-by-step explanation:

For grants that require the recipient government to spend money on qualifying items and then request reimbursement, revenues are recognized when the recipient government has incurred the qualifying expenses and meets the necessary requirements for reimbursement.

Once the recipient government has spent money on the qualifying items and followed the rules for how it is to be spent, it can then request reimbursement from the granting government. The granting government will review the request and, if approved, release the funds to the recipient government as revenue.

It is important for the recipient government to accurately track and document the qualifying expenses to ensure proper recognition of revenues and reimbursement from the granting government.