Harris County Transferred $200,000 from the General Fund to the Motor

question 23

Multiple Choice

Harris County transferred $200,000 from the General Fund to the Motor Pool Internal Service Fund to pay for the use of automobiles during the first six months of FY 2001.The appropriate entry in the General Fund to record this transfer of cash would be

• A)Debit Expenditures $200,000; Credit Cash $200,000.
• B)Debit Other Financing Uses-Transfer Out $200,000; Credit Cash $200,000.
• C)Debit Fund Balance-Transfer Out $200,000; Credit Cash $200,000.
• D)Debit Other Financing Sources-Transfer In $200,000; Credit Cash $200,000.

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Definitions:

Step-down Method

An accounting method used for allocating indirect costs to different departments based on a hierarchy where the first allocation base is the costliest department.

Personnel Department

The division of a business that is focused on activities relating to employees, such as hiring, training, and benefits administration.

Number Of Employees

The total count of individuals employed by a business or organization at a specific point in time.

Step-down Method

A method used in accounting to allocate service department costs to production departments in stages.