According to GASB Standards Transfers Should Be Recognized

question 33

Multiple Choice

According to GASB standards transfers should be recognized

• A) When earned.
• B) When collected in cash.
• C) When authorized by the budget ordinance.
• D) In the period the interfund receivable and payable arise.

---

Definitions:

Payment

The transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a contractual obligation.

Discount

denotes a reduction in the price of goods or services typically offered for promotional reasons or to certain groups of customers.

Supplier

An individual or company that provides goods or services to another entity under terms specified in a contract.

Net Present Value

A financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.