Davidyan University, a public university, receives a federal grant to study government pension funding. The grant award is $100,000, and it is expenditure-driven. Davidyan University receives the federal grant in its entirety this fiscal year, but it does not incur qualifying expenditures until the next fiscal year. Which of the following describes the financial statement implications of the receipt of the grant award?

Select one:

a. The Universitys Statement of Net Position and Statement of Revenues, Expenses, and Changes in Net Position will not be different, as no journal entry would be recorded for the receipt of the grant award.

b. The Universitys Statement of Net Position will reflect $100,000 more cash and $100,000 as deferred grant revenue.

c. The Universitys Statement of Net Position will reflect $100,000 more cash and $100,000 as unearned grant revenue.

d. The Universitys Statement of Net Position will reflect $100,000 more cash and its Statement of Revenues, Expenses, and Changes in Net Position will report $100,000 of grant revenue.