During the Current Fiscal Year, Mountain View City's Water Utility

question 7

Multiple Choice

During the current fiscal year, Mountain View City's water utility, an enterprise fund, rendered billings for water supplied to the general fund. Which of the following accounts should be debited by the general fund?

• A) Transfer-out to enterprise fund
• B) Due to water utility enterprise fund
• C) Appropriations
• D) Expenditures

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Definitions:

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles and standards in Canada designed for private companies.

IFRS

International Financial Reporting Standards, which are global standards for how particular types of transactions and other events should be reported in financial statements.

Share Capital

The total amount of capital raised by a company through the issuance of shares to shareholders.

Statement of Financial Position

A financial report that shows the assets, liabilities, and equity of a company at a specific point in time, providing a snapshot of its financial health—also known as a balance sheet.