An Enterprise Fund of Grist Was Billed $10,000 for Using

question 16

Multiple Choice

An enterprise fund of Grist was billed $10,000 for using the services of an internal service fund's data processing center.What account should Grist's enterprise fund debit to record this billing?

• A)Due to Internal Service Fund
• B)Expenditures
• C)Transfer Out to Internal Service Fund
• D)General Operating Expenses

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Definitions:

Voucher Register

A record or log of vouchers that have been prepared, detailing the authorization of transactions and payments.

Liability

An obligation of the company arising from past transactions or events, the settlement of which may result in the transfer of assets, provision of services, or other yielding of economic benefits in the future.

Accounts Payable

Liabilities representing amounts the company owes to suppliers or creditors for goods and services received but not yet paid for.

Vouchers

Documents representing an internal intent to make a payment to an external party, often used in accounts payable processes.