Which of the Following Would Be Considered an Internal Exchange

question 43

Multiple Choice

Which of the following would be considered an internal exchange transaction?

• A) The General Fund transfers $200,000 to establish a Central Supplies Fund; this amount will not be repaid.
• B) The General Fund transfers $125,000 to the Debt Service Fund for payment of currently due bond interest payments.
• C) The General Fund transfers $9,000 to the Central Supplies Fund for supplies it received from Central Supplies.
• D) The Capital Projects Fund completes a library building project and transfers the remaining cash to the Debt Service Fund.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before financial statements are prepared.

Cash Receipts Journal

An accounting ledger that tracks all cash inflows to a business, documenting sources of revenue or income.

Subsidiary Ledger Accounts

Detailed accounts contained within a subsidiary ledger, tracking individual transactions related to a specific customer, supplier, or type of item.

Accounts Receivable

Money owed by customers for goods or services that have been delivered but not yet paid for.