The initial transfer of cash from the General Fund to establish a motor pool internal service fund would require the General Fund to credit cash and debit:

Question

Quizplus · Accepted Answer

The transfer of cash from the General Fund to establish a motor pool internal service fund is considered a transfer out of the General Fund, which is recorded as an Other Financing Use- Transfers Out Control. Therefore, the General Fund should debit Other Financing Uses-Transfers Out Control and credit Cash. The other options are incorrect as they do not reflect the appropriate accounting treatment for this transaction.

The Initial Transfer of Cash from the General Fund to Establish