An interfund transfer should be reported in a governmental fund operating statement as a(an)
A)Revenue or expenditure.
B)Due from or due to other funds.
C)Change in fund balance.
D)Other financing source or use.

Question

Quizplus · Accepted Answer

An interfund transfer is not a revenue or expenditure, nor is it a change in fund balance. It represents a transfer of resources between two different funds, and as such, it should be reported as an other financing source or use.

An Interfund Transfer Should Be Reported in a Governmental Fund