The General Fund Used Electricity Provided by the City-Owned Electric

question 30

Multiple Choice

The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city) . The governmental activities journal entry to record the transaction will include:

• A) A debit to Expenses.
• B) A debit to Expenditures.
• C) A debit to Internal Balances.
• D) No entry would be recorded since the transaction is between two funds of the same government.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, deposits, and other liquid assets.

Monetarist Approach

An economic theory emphasizing the role of governments in controlling the amount of money in circulation as a primary method in managing the economy and combating inflation.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency and balances held in checking and savings accounts.

Real Output

The total value of all goods and services produced in an economy, adjusted for inflation, reflecting the true productivity of the economy.