Which of the Following Statements Is True About Interfund Transfers

question 24

Multiple Choice

Which of the following statements is true about interfund transfers in an Enterprise Fund?

• A) They are always reported as capital and related financing activities in the statement of cash flows.
• B) They are always the last item reported immediately before the change in net position in the statement of revenues, expenses, and changes in fund net position.
• C) They do not affect changes in net position of the proprietary fund.
• D) They are always reported as noncapital financing activities in the statement of cash flows.

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Definitions:

Specialty Products

High-value goods or services that are distinctive in some way and are often sought after by consumers willing to make an extra effort to obtain them.

Convenience Products

Goods or services that are easy to obtain and meet the immediate needs of consumers.

Capital Items

Long-term assets acquired or used by a business to generate income and not intended for resale in the normal course of operation.

Symbolic Attributes

Symbolic attributes refer to the intangible qualities that imbue products or brands with meaning beyond their functional use.