Which of the Following Statements Is not correct

question 91

Multiple Choice

Which of the following statements is not correct?

• A) Transactions between funds of the same government may not be assumed to be arms' length in nature.
• B) Most interfund transactions are eliminated in the government-wide statements
• C) Interfund reimbursements are classified as other financing sources or uses
• D) Interfund transfers are classified as other financing sources or uses

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Definitions:

Drawer

Person who writes a check.

Maker

One promising to pay a note.

Promissory Note

A financial document constituting a written promise to pay a specified sum of money to a designated party on demand or at a predetermined date.

Intermediate Calculations

Intermediate Calculations involve the computations or mathematical operations performed as steps between the initial setup and the final result or outcome in a process.