You are assessing the financial condition of a county.Its financial statements have captions for "transfers in" and "transfers out," both containing significant amounts.What consideration should you give to these transfers in assessing financial condition?
A)do not consider them in your analysis,because transfers in will equal transfers out
B)see if transfers in equal transfers out.Then,check the balance sheet to see if the captions "due to" and "due from" also are equal.If so,no further review is needed
C)see if the transfers are recurring,rather than one-shots.If they are recurring,no further inquiry is needed
D)only transfers in should be considered

Question

Quizplus · Accepted Answer

Transfers in and out should be considered in the context of their recurrence. Recurring transfers indicate a more stable and predictable financial situation, whereas one-time transfers may not reflect the ongoing financial condition.

You Are Assessing the Financial Condition of a County