In december 2020, the consumer association of america (caa), a not-for-profit research organization, received a $6 million grant from the sporting goods manufacturers association (sgma) to develop a football helmet that will provide better protection against head injuries. the grant was intended to cover $4 million of direct costs and $2 million of overhead costs. the grant contract stipulated that the sgma would make its payment to the caa upon receiving invoices from caa for the actual direct costs incurred. it further required that the research results be reported only to the sgma and not be made publicly available. each reimbursement payment for direct costs incurred would also include an appropriate proportion of indirect costs (i. e., an additional $0.50 for each $1 of direct costs).
in 2021 the caa carried out and completed the research for which it contracted. direct costs were, as estimated, $4 million. it submitted the necessary invoices and received payment in full.
1. prepare required journal entries for 2020 and 2021. be sure to indicate whether each entry should be made to an restricted by donor fund or not restricted by donor fund. you need not, however, record the indirect costs themselves (inasmuch as, by their very nature, they are not tied directly to the grant).
2. assume instead that in december 2020 the caa received from the national sports association (nsa) a pledge of $6 million. the donation is for research relating to football helmets. the nsa is a not-for-profit agency, and the results of any research will be in the public domain. in january 2021, the caa received the contribution. throughout the remainder of 2021 it carried out its football-related research (incurring $4 million of direct costs). prepare the required journal entries for 2020 and 2021 and indicate whether each entry should be made to a fund that is restricted by a donor or not.
3. comment on any differences between the two awards that might justify differences in revenue recognition.
4. suppose instead that the nsa promised to make its contribution only on receiving a report that the research had actually been completed. would your approach have been different? explain.

Part two of threewhich accurately describes a cause for inflation? the federal reserve requires banks to keep more money on reserve. the federal reserve raises interest rates and slows economic activity. the government places too much money into circulation. the government places too little money into circulation. what are consequences of rapid inflation? (select all that apply.) savings accounts become less desirable because interest earned is lower than inflation individual purchasing power increases, which results in an increase in demand. individual purchasing power decreases, which results in a decrease in demand. people postpone purchasing expensive items, such as homes, until prices drop.how does the federal reserve stabilize and safeguard the nation’s economy? (select all that apply.) it distributes currency and oversees fiscal conditions. it implements american monetary policy. it regulates banks and defends consumer credit rights. it regulates and oversees the nasdaq stock exchange. what are functions of the federal reserve? (select all that apply.) it offers financial services within the government. it creates us coins. it prints us dollars. it enters us currency into circulation.how does the federal reserve bank fit into the balance of power among the three branches of the federal government established by the constitution? the chair of the federal reserve is appointed by the president and approved by the senate. the chair of the federal reserve is elected by popular vote. the chair of the federal reserve is appointed by congress and approved by the supreme court. the chair of the federal reserve is appointed in a secret meeting.who appoints the board of governors of the federal reserve system? the us president the us supreme court the us house of representatives the us senatewhy is federal oversight crucial to the operation of the federal reserve bank? the federal reserve is the nation’s central banking system. the federal reserve controls the nomination of legislators to committees. the federal reserve funds mandatory government expenditures. the federal reserve sets rules and regulations for the new york stock exchange.what is the government accountability office (gao)? an independent agency that answers to congress and audits the federal reserve an internal review agency of the federal reserve used to promote its mission a government agency that answers to congress and audits the united states mint a private agency that advises the dent about fiscal policyhow does the law of comparable advantage lead to international trade? countries that do not engage in trade are in a stronger position economically than countries that do trade. countries that cannot produce products efficiently have to trade for the goods and services that other countries have. countries that have more resources are able to trade for a wider variety of items that can be offered for sale. countries make products they can produce efficiently and are able to get the rest of what they need through trade.when might a country produce a product even though it cannot do so efficiently? (select all that apply.) to ensure national security to minimize the sale of exports to ensure a trade deficit to increase the balance of trade