At the inception of the City of Covedale's motor pool, $1,000,000 was transferred from the General Fund as beginning capital.The entry in the Internal Service Fund included a credit to:

Question

Quizplus · Accepted Answer

The correct entry for the inception of the City of Covedale's motor pool with a transfer of $1,000,000 from the General Fund is a credit to "Interfund Transfer In." This reflects the transfer of resources from one fund within the government (General Fund) to another (Internal Service Fund), rather than recognizing it as revenue, capital, or directly increasing net assets.

At the Inception of the City of Covedale's Motor Pool