Question

What is a government grant whose primary condition is that an entity qualifying for it should purchase, construct or otherwise acquire a long-term asset?

1) Grant related to asset
2) Grant related to income
3) Government gift
4) Government appropriation

Answer 1

A government grant whose primary condition is that an entity qualifying for it should purchase, construct, or otherwise acquire a long-term asset is referred to as a grant related to asset

Step-by-step explanation:

The government grant whose primary condition is that an entity qualifying for it should purchase, construct, or otherwise acquire a long-term asset is referred to as a grant related to asset. These grants are typically given by the government to support specific projects or initiatives that involve the acquisition or development of tangible assets such as buildings, infrastructure, or equipment.

For example, the federal government may provide a grant to a state or local government to fund the construction of a new school or hospital. The grant may specify that the funds must be used exclusively for the purchase of land, construction materials, and other related expenses directly associated with the long-term asset.