Question $20$

A state government receives a grant from the federal government that it disburses to local governments within the state. The state government

disburses the cash received from the federal government to the local government, but the state government has no other administrative

responsibilities regarding the grant. The state government should report the grant in:

Select one:

A$.$ A Custodial Fund

B$.$ A Special Revenue Fund

C$.$ An Internal Service Fund

D$.$ The General Fund