City Parks Department activities are accounted for in the General Fund.The Parks Department receives two invoices,one from the Lighting Enterprise Fund (EF)and one from the Printing Internal Service Fund (ISF).On receiving the invoices,which accounts should the department debit?
A)due to lighting EF and due to printing ISF
B)expenditures (for lighting services)and expenditures (for printing services)
C)expenditures (for lighting services)and transfers (for printing services)
D)transfers (for lighting services)and expenditures (for printing services)

Question

Quizplus · Accepted Answer

The Parks Department would debit their Expenditures account for each invoice received. Therefore, Choice B is the correct answer as it correctly identifies the accounts to be debited for both invoices. Choice A is incorrect as "Due to" accounts are typically used when recording payments owed to another entity, not when recording expenses. Choice C is incorrect as a transfer would imply that money is being moved between different funds or departments, which is not the case here. Similarly, Choice D is incorrect, as a transfer account would not be appropriate for recording the expenditures associated with the Lighting Enterprise Fund invoice.

City Parks Department Activities Are Accounted for in the General