Which of the Following Observations Concerning Interfund Transfers Is True

question 67

Multiple Choice

Which of the following observations concerning interfund transfers is true?

• A)They are expected to be repaid.
• B)They are classified as fund revenues or expenditures.
• C)The receiving fund recognizes these transfers as revenue.
• D)These transfers are classified under "Other Financing Sources or Uses."

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Definitions:

Corporate Articles

Legal documents filed with a governmental body to formally establish the existence of a corporation under the law.

Equity

A measure of ownership interest in a corporation or asset, reflecting the residual value to shareholders after debts and liabilities have been settled.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).

Ownership

The legal right to possess, use, control, and dispose of property or an item.