A transfer of General Fund assets to create an internal service fund that is not expected to repay the assets is an example of an interfund transfer.

Question

Quizplus · Accepted Answer

This statement accurately describes an interfund transfer, which is the movement of financial resources from one fund to another within a governmental entity. In this case, the transfer of General Fund assets to create an internal service fund is an example of an interfund transfer because it involves two different funds (General Fund and internal service fund) and results in a change in their financial resources. However, if the internal service fund is not expected to repay the assets, it may be considered a non-reimbursable interfund transfer.

A Transfer of General Fund Assets to Create an Internal