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 transfers $9,000 to the Central Supplies Fund for supplies it received from Central Supplies.
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 two funds controlled by the same government entity. In this scenario, the General Fund transferring $9,000 to the Central Supplies Fund for supplies it received from Central Supplies would be an internal exchange transaction since both funds are controlled by the same government entity. The other options involve transfers to other funds or repayment of debt, which are not internal exchange transactions.

Which of the Following Would Be Considered an Internal Exchange