Regarding external financial reporting for governmental units, no distinction is made in the government-wide Statement of Activities between (1) interfund transfers that are made annually to subsidize an operation and (2) interfund transfers made to establish a new fund.

Question

Quizplus · Accepted Answer

In the government-wide Statement of Activities, interfund transfers are aggregated and reported in a single line item, without distinguishing between the purpose of the transfers, such as whether they are for subsidizing operations or establishing new funds.

Regarding External Financial Reporting for Governmental Units, No Distinction Is