A debt service fund of Clifton received $100,000 from its general fund during the fiscal year ended June 30,20X9.The cash was used to pay matured interest on Clifton's general obligation bonds,which were issued to finance construction of a new municipal building.On the statement of revenues,expenditures,and changes in fund balance prepared for the debt service fund for the year ended June 30,20X9,the amount received from the general fund should be reported as:

Question

Quizplus · Accepted Answer

The $100,000 received from the general fund is considered an other financing source for the debt service fund because it is not revenue and does not relate to matured interest payments or expenditures. Other financing sources are defined as inflows of resources to a fund that are not revenues or receipts, and are typically transfers or contributions from another fund or a non-governmental entity.

A Debt Service Fund of Clifton Received $100,000 from Its