A Transfer of Cash from the General Fund to a Debt

question 28

True/False

A transfer of cash from the general fund to a debt service fund to pay interest on debt should be recorded in the general fund as a nonreciprocal transfer-out.

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Definitions:

Financial Reporting

The method of generating reports that reveal the financial condition of an organization to its management, investors, and governmental bodies.

Legal System

A comprehensive system of rules and principles organized to regulate societal behaviors, enforced through institutions.

Common Law

A system of law based on judicial decisions and precedent rather than statutes.

Nongovernmental Organization

An independent organization that operates outside of government control, often focused on humanitarian, developmental, or environmental efforts.