Which of the Following Is True with Respect to Interfund

question 128

Multiple Choice

Which of the following is true with respect to interfund loans?

• A) Interfund loans are resources provided from one fund to another with the understanding that they do not have to repaid in the future.
• B) The fund providing the resources records a transfer in and the fund receiving the resources records a transfer out.
• C) Long-term loans use the terms Transfer to Other Funds and Transfer from Other Funds.
• D) Interfund loan receivables and payables are separately reported on the balance sheets of the affected funds.

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Definitions:

Auxiliary Section

An additional section of a piece of machinery or equipment that provides supplemental functionality or capacity.

RoadRanger Transmission

A brand of manual transmissions found in heavy-duty trucks, known for their durability and range of gear options.

Floating

A term used to describe a state where a device or component is not firmly secured and can move or adjust position.

Countershafts

Secondary shafts in a transmission that carry gears to transmit motion from the main shaft to other parts of the machine, often used to adjust the gear ratio.