Which of the Following Observations Concerning Interfund Transfers Is True

question 67

Multiple Choice

Which of the following observations concerning interfund transfers is true?

• A)They are expected to be repaid.
• B)They are classified as fund revenues or expenditures.
• C)The receiving fund recognizes these transfers as revenue.
• D)These transfers are classified under "Other Financing Sources or Uses."

---

Definitions:

Invoice

A document issued by a seller to a buyer that outlines a transaction and includes details of goods or services provided, prices, date, and payment terms.

Accounts Receivable

Funds that customers owe to a business for products or services provided but not yet compensated for.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value.

Deposits in Transit

Funds that have been received and recorded by a business but not yet recorded by the bank, leading to a discrepancy in the accounting records until the deposit clears.