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The General Fund Borrowed $100,000 from a Special Revenue Fund

Question 1

Multiple Choice

The General Fund borrowed $100,000 from a Special Revenue Fund. Interest will be paid on the loan annually for five years and the principal repaid in full at the end of the fifth year. The governmental activities column should report


A) Both a loan payable and loan receivable for $100,000.
B) Other financing sources of $100,000.
C) Other financing uses of $100,000.
D) Nothing related to the loan arrangement.

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