When counties receive cash advances under grants from the state,what account should they credit?

Question

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Counties should credit the account "advance on state grants" to record the receipt of cash advances under grants from the state. This account represents the amount of cash received in advance of the actual grant funds being expended. Once the grant funds are expended, the amounts should be transferred from the advance account to the appropriate grant expenditure accounts. Choices A and B are not correct because they are accounts used to record grants receivable and revenue from grants, respectively, which are not appropriate for recording cash advances. Choice D is not correct because it is an expenditure account rather than a liability or asset account used to record cash advances.

When Counties Receive Cash Advances Under Grants from the State,what