A government recorded transfers out of the General Fund to the debt service fund in the amount of $ 300,000 and to the enterprise fund in the amount of $ 600,000.The amount that would be shown as a transfer in the governmental activities column of the Statement of Activities would be:

Question

Quizplus · Accepted Answer

The transfer out of the General Fund to the debt service fund and enterprise fund are both considered "transfers in" for the debt service and enterprise funds, respectively. However, in the governmental activities column of the Statement of Activities, transfers out are shown as negative amounts, so the transfers in must also be shown as negative amounts. Therefore, the total amount shown as transfers in would be -$900,000 (-$300,000 for the debt service fund and -$600,000 for the enterprise fund). However, since the question is asking for the amount that would be shown as a transfer in (not as a negative amount), the correct answer is B - $600,000.

A Government Recorded Transfers Out of the General Fund to the Debt