Reimbursement grants require that the appropriate expenditure be made before the revenue can be recognized.

Question

Quizplus · Accepted Answer

Reimbursement grants are funds given to an entity to cover certain expenses. Therefore, the revenue can only be recognized after the appropriate expenditure has been made and documented. This is because the grantor wants to ensure that the funds are being used for their intended purpose before releasing the funds.

Reimbursement Grants Require That the Appropriate Expenditure Be Made Before