The city's electric utility fund sent $700,000 to the General Fund to help cover the city's operating costs. This transaction would be recorded in the governmental activities journal as

Question

Quizplus · Accepted Answer

The transfer of $700,000 from the electric utility fund to the General Fund represents an Interfund transfer in, which is a transaction recorded in the governmental activities journal. Interfund transfers involve the movement of resources between funds within the same government entity and are recorded in the accounting system to maintain accurate records of cash movements among funds. Therefore, option A is the correct choice.

The City's Electric Utility Fund Sent $700,000 to the General