A General Fund Receives an Invoice from the Electric Utility

question 38

Multiple Choice

A General Fund receives an invoice from the Electric Utility Fund (an Enterprise Fund) for electricity provided by the Utility Fund.When it receives the invoice,what account should be debited in the General Fund?

• A)due from electric utility fund
• B)transfer in from electric utility fund
• C)expenditures - utility services
• D)due to electric utility fund

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Definitions:

Condition Precedent

A condition in a contract that must be met before a party's obligation becomes enforceable.

Condition Subsequent

A legal term referring to an event or state of affairs that, if it occurs, will terminate a party's rights under a contract.

Repudiation

The rejection or denial of the validity of a contract, claim, or other obligations, implying an intent not to fulfill the terms.

Breach of Contract

The failure, without legal excuse, to perform any promise or obligation stated in a contract, which may entitle the other party to legal remedies such as damages.