The Following Balances Exist at Year End Within the Governmental

question 4

Multiple Choice

The following balances exist at year end within the governmental activities of a government unit:
Transfers In: 145,000
Transfers Out: 115,000
When compiling the government-wide financial statements, the journal entry to eliminate the transfer activity will include:

• A) A debit of $115,000 to Transfers Out
• B) A debit of $30,000 to Transfers In
• C) A debit of $115,000 to Transfers In
• D) None of the above

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Definitions:

Cash Disbursements

The outflow of cash for expenses, such as payments to creditors, operational costs, and investment activities.

Production Budget

An estimate of the number of units that must be produced in a given period to meet the sales and inventory needs, forming part of the master budget of a business.

Finished Goods Inventory

Products that have completed the manufacturing process but have not yet been sold or distributed to customers.

Expected Units Sold

The number of units of a product that a company anticipates selling in a particular period based on market research and sales forecasts.