GASB 34 established four types of interfund activities.Interfund activities are recognized as revenue in a governmental fund for an:

A)Option A
B)Option B
C)Option C
D)Option D

Question

GASB 34 established four types of interfund activities.Interfund activities are recognized as revenue in a governmental fund for an:

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Interfund activities are recognized as revenue in a governmental fund for an "operating" fund. GASB 34 identified four types of interfund activities – services provided, reimbursements, transfers in, and transfers out. Out of these, only the "services provided" type of interfund activity is recognized as revenue in the operating fund. Therefore, Option A is the best choice.

GASB 34 Established Four Types of Interfund Activities