The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city). The governmental activities journal entry to record the transaction will include:
A) A debit to Expenses.
B) A debit to Expenditures.
C) A debit to Internal Balances.
D) No entry would be recorded since the transaction is between two funds of the same government.

Question

Quizplus · Accepted Answer

The transaction involves the exchange of resources between two funds of the same government, so it is not recorded in the governmental activities journal entry.

The General Fund Used Electricity Provided by the City-Owned Electric