During the current fiscal year, Mountain View City's water utility, an enterprise fund, rendered billings for water supplied to the general fund. Which of the following accounts should be debited by the general fund?
A) Transfer-out to enterprise fund
B) Due to water utility enterprise fund
C) Appropriations
D) Expenditures

Question

During the current fiscal year, Mountain View City's water utility, an enterprise fund, rendered billings for water supplied to the general fund. Which of the following accounts should be debited by the general fund? 
A) Transfer-out to enterprise fund
B) Due to water utility enterprise fund
C) Appropriations
D) Expenditures

Quizplus · Accepted Answer

The general fund should debit Due to water utility enterprise fund because it owes money to the water utility enterprise fund for the water supplied.

During the Current Fiscal Year, Mountain View City's Water Utility