If a City Receives Notification of an Expenditure-Driven Grant Award

Multiple Choice

If a city receives notification of an expenditure-driven grant award and the actual proceeds sixty days prior to the start of the grant period, the entry to record the grant in the Special Revenue Fund would be

A) A debit to grants receivable and a credit to grants revenue.
B) A debit to cash and a credit to grants revenue.
C) A debit to grants receivable and a credit to unearned revenue.
D) A debit to cash and a credit to unearned revenue.