The Appropriate Entry in the General Fund to Account for This

question 70

Multiple Choice

The appropriate entry in the general fund to account for this transfer is a credit to cash for $500,000 and a debit for $500,000 to

• A) Due from internal service fund.
• B) Nonreciprocal transfer-out.
• C) Expenditures.
• D) Investment in internal service fund.

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Definitions:

Retained Earnings Statement

A financial report detailing the modifications in accumulated profits over a certain timeframe.

Prior Period Adjustments

Corrections of errors in financial statements of prior periods or adjustments for omitted transactions.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

A form of equity stake that signifies ownership within a corporation, granting the owner the right to vote and a portion of the corporation's earnings via dividends.