Question

JE to record restricted government grants (revenue when spent):

A) Debit to Unearned Revenue
B) Credit to Unearned Revenue
C) Debit to Revenue
D) Credit to Revenue

Answer 1

The correct answer for recording restricted government grants (revenue when spent) is Debit to Revenue.

Step-by-step explanation:

The correct answer for recording restricted government grants (revenue when spent) is C) Debit to Revenue. When a government receives a restricted grant, it is recognized as revenue. As it is spent, the government will debit the revenue account to offset the expenditure.