Which of the following would be considered an internal exchange transaction?
A)The General Fund transfers $200,000 to establish a Central Supplies Fund; this amount will not be repaid.
B)The General Fund transfers $125,000 to the Debt Service Fund for payment of currently due bond interest payments.
C)The General Fund orders and receives supplies from the Central Supplies Fund in the amount of $9,000.
D)The Capital Projects Fund completes a library building project and transfers the remaining cash to the Debt Service Fund.

Question

Quizplus · Accepted Answer

An internal exchange transaction involves an exchange of goods or services between two funds or departments within the same government entity. Option C involves the General Fund ordering and receiving supplies from its own internal Central Supplies Fund, making it an internal exchange transaction. Options A, B, and D involve transfers of funds between different funds or departments, and do not involve an exchange of goods or services.

Which of the Following Would Be Considered an Internal Exchange