If the governing body contributes $65,000 from the General Fund to a Debt Service Fund, the General Fund statements should report

Question

Quizplus · Accepted Answer

When a governing body contributes funds from the General Fund to a Debt Service Fund, it is considered an other financing use. This is because the General Fund is providing financing to the Debt Service Fund, rather than making an expenditure, a capital contribution, or a reimbursement. Therefore, the General Fund statements should report an other financing use of $65,000.

If the Governing Body Contributes $65,000 from the General Fund