The City's Electric Utility Fund Sent $700,000 to the General

question 78

Multiple Choice

The city's electric utility fund sent $700,000 to the General Fund to help cover the city's operating costs. This transaction would be recorded in the governmental activities journal as

• A) Interfund transfer in.
• B) Internal balance.
• C) Revenue.
• D) It would not be recorded since the transaction involves two funds of the same government.

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Definitions:

Production Units

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Master Budget

The master budget is a comprehensive financial planning document that consolidates all of a company's individual budgets, outlining its financial goals and plans.

Merchandising Company

A type of business that purchases finished goods for resale, making profits by selling these products at higher prices than their purchase costs.

Purchases Budget

A financial plan that estimates the cost and amount of goods or materials a company needs to buy over a specific period to meet its operational goals.