The general fund of Sun City was billed $7,000 for using the services of one of its internal service funds.The general fund should account for this transaction as an:
A)interfund transfer.
B)interfund loan.
C)interfund service.
D)interfund reimbursement for services rendered.

Question

Quizplus · Accepted Answer

Interfund services are transactions where one fund within a government entity provides services to another fund within the same entity, and the transaction is treated as an exchange. In this case, the general fund receiving services from an internal service fund and being billed for it is an example of interfund services.

The General Fund of Sun City Was Billed $7,000 for Using