What type of contributions are treated as expenses over the coverage period provided?

The correct choice identifies contributions that are treated as expenses over the coverage period provided, which pertains to operating grants. Operating grants are typically provided by governmental entities to support the operating costs of specific programs or services over a defined period. Unlike capital contributions, which are used for acquiring assets and are recorded as additions to equity or net assets, operating grants are recognized as revenue and expensed in the period in which the related expenses for which the grants were intended occur.

This method aligns with the matching principle in accounting, where revenues are recognized in the same period as the expenses they help to cover. Thus, when an entity receives an operating grant, it can use the funds to cover specific program costs, and these costs are recognized as expenses in the periods they are incurred, often reflecting the duration of the grant coverage.

In comparison, capital contributions would involve funding for long-term assets rather than immediate expenses, general fund revenues refer to the overall resources available to meet operational needs but are not encapsulated as expenses associated with specific contributions, and debt service payments pertain to repayments of borrowed funds rather than contributions for operational support.