The General Fund has a transfer out to a Debt Service Fund of $32,000 and a transfer in from an Electric Utility Enterprise Fund of $48,000. The Debt Service Fund has a transfer in from the General Fund of $32,000, and the Electric Utility Enterprise Fund has a transfer out to the General Fund of $48,000. What will be the amount of transfers reported in the government-wide statement of activities?

Question

Quizplus · Accepted Answer

For government-wide reporting, the transfers among the governmental funds cancel each other out and, therefore, the transfer out from the General Fund to the Debt Service Fund does not appear in the statement of activities. Transfers between governmental-type funds and enterprise funds are reported as transfers in the statement of activities. Therefore, the transfer of $48,000 from the Electric Utility Enterprise Fund to the General Fund is reported in the statement of activities. This transfer between the business-type activity and the governmental activity is eliminated in the statement of activities toward the bottom of the section on Net expense (revenue) and changes in net position.

The General Fund Has a Transfer Out to a Debt