A Government Had the Following Transfers Reported in Its Governmental

question 134

Multiple Choice

A government had the following transfers reported in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $l,100,000; (2) a transfer from the General Fund to an enterprise fund in the amount of $1,300,000; and (3) a transfer from the General Fund to a special revenue fund in the amount of $500,000.The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

• A) $ 500,000.
• B) $1,300,000.
• C) $2,400,000.
• D) $2,900,000.

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Definitions:

Principal

The main party to a transaction or contract who has authorized an agent to act on their behalf.

Apparent Agency

A legal concept where a person appears to be, or is mistakenly believed to be, authorized to act as an agent for another party.

Agency by Estoppel

A principle by which a person or entity is prevented from denying the authority of another who has been allowed to act as their agent, despite not officially having been granted the role.

Equitable Agency

A principle where an agent has the authority to act on behalf of a principal, based on fairness and justice.