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:

Costing Inventories

The process of determining the value of inventory, including the costs associated with acquiring or producing the goods.

Physical Flow

The movement and tracking of physical goods and materials through the production process or supply chain.

Inventory Costing Method

An approach used to value inventory and determine the cost of goods sold, including methods like FIFO, LIFO, and weighted average.

Cost Flow Assumption

A method used in accounting to determine the value of inventory sold and remaining in stock, common methods include FIFO, LIFO, and weighted average.