According to GASB standards transfers should be recognized
A) When earned.
B) When collected in cash.
C) When authorized by the budget ordinance.
D) In the period the interfund receivable and payable arise.

Question

Quizplus · Accepted Answer

According to GASB standards, transfers should be recognized in the period the interfund receivable and payable arise. This means that the transfer should be recorded when one fund has a receivable from another fund, and the other fund has a payable to the first fund. These amounts should be recognized in the financial statements of both funds when they occur, even if the actual transfer of cash has not yet taken place.

According to GASB Standards Transfers Should Be Recognized