The General Fund lends cash at the beginning of the year to an Enterprise Fund,expecting to be repaid before the end of the year.What account should be debited in the General Fund?

Question

Quizplus · Accepted Answer

The General Fund should debit the "due from enterprise fund" account because it represents the amount owed to the General Fund by the Enterprise Fund. This account serves as an asset account for the General Fund and a liability account for the Enterprise Fund until the loan is repaid.

The General Fund Lends Cash at the Beginning of the Year