Which of the following observations concerning interfund transfers is true?
A)They are expected to be repaid.
B)They are classified as fund revenues or expenditures.
C)The receiving fund recognizes these transfers as revenue.
D)These transfers are classified under "Other Financing Sources or Uses."

Question

Quizplus · Accepted Answer

Interfund transfers are classified under "Other Financing Sources or Uses" category in a fund's statement of revenues, expenditures, and changes in fund balances. They are not considered revenue or expenditure since they do not represent income or expense for the receiving fund. They are more like loans and are expected to be repaid, but not recognized as revenue in the receiving fund.

Which of the Following Observations Concerning Interfund Transfers Is True