When a new internal service fund is established with a transfer of funds (not to be repaid), which account would be credited in the internal service fund?
A) Cash.
B) Interfund Transfer In.
C) Interfund Transfer Out.
D) Estimated Revenues.

Question

Quizplus · Accepted Answer

When a new internal service fund is established with a transfer of funds that is not to be repaid, the correct account to credit in the internal service fund is "Interfund Transfer In." This account reflects the inflow of resources from another fund within the same government entity without the expectation of repayment.

When a New Internal Service Fund Is Established with a Transfer