Which of the following statements concerning interfund transfers is True?
A) Interfund transfers are reported in the statement of revenues, expenditures, and changes in fund balance when transfers occur among governmental funds.
B) Interfund transfers are reported in the statement of activities when transfers occur among governmental funds.
C) Interfund transfers are reported in the statement of revenues, expenditures, and changes in fund balance and the statement of activities when transfers occur among governmental funds.
D) Interfund transfers are reported as internal balances on the statement of net position when activity occurs among governmental activities and business-type activities.

Question

Quizplus · Accepted Answer

Interfund transfers are reported in the statement of revenues, expenditures, and changes in fund balance when transfers occur among governmental funds. These transfers are made between funds within the same governmental entity and are not considered revenue or expenditure transactions. Instead, they are reported as additions or deductions to fund balances.

Which of the Following Statements Concerning Interfund Transfers Is True