Economics · Financial Rules and Auditing

Which of the following is correct regarding the accounting of permanent/temporary advances under standard government accounting principles?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Advances are recorded directly in the Journal Proper instead of the Cash Book.
2Amounts drawn as advances shall continue to form part of the cash balance until adjusted.✓
3Refunded advance amounts are permanently adjusted in red ink only.
4Advances are immediately treated as final expenditure upon withdrawal.

Correct answer

Amounts drawn as advances shall continue to form part of the cash balance until adjusted.

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