Which of the following activities would be classified as a reciprocal interfund activity?
A) Cash transfer from the general fund to a debt service fund to pay for principal and interest on long-term debt
B) Transfer from a capital projects fund to the general fund to reimburse the general fund for its payment of the architect's fee related to new construction
C) Purchase of supplies by the general fund from an internal service fund
D) Transfer of funds from the general fund to establish a new internal service fund

Question

Quizplus · Accepted Answer

Reciprocal interfund activities involve exchanges of goods or services between funds, such as the purchase of supplies by the general fund from an internal service fund, where both parties receive and give up resources.

Which of the Following Activities Would Be Classified as a Reciprocal