A General Fund receives an invoice from the Electric Utility Fund (an Enterprise Fund)for electricity provided by the Utility Fund.When it receives the invoice,what account should be debited in the General Fund?

Question

Quizplus · Accepted Answer

The General Fund should debit the Expenditures - Utility Services account when it receives an invoice from the Electric Utility Fund. This account represents the expenses incurred by the general government for utility services, including electricity. The Due From Electric Utility Fund account represents the amount owed to the General Fund by the Electric Utility Fund, and the Transfer In From Electric Utility Fund account represents the transfer of funds from the Electric Utility Fund to the General Fund, which is not applicable in this scenario. The Due To Electric Utility Fund account represents the amount owed by the General Fund to the Electric Utility Fund, which is also not applicable here. Therefore, the correct option is C) Expenditures - Utility Services.

A General Fund Receives an Invoice from the Electric Utility