The general fund of the City of Columbia transferred money to establish an internal service fund for the city's data processing needs.The general fund of Columbia should account for this transaction as a(n):

Question

Quizplus · Accepted Answer

The transfer of funds from the general fund to establish an internal service fund is categorized as an interfund transfer because funds are being moved from one fund to another within the same governmental entity. It is not an expenditure because no goods or services were received in exchange for the transfer. It is not an interfund reimbursement because there is no expenditure to be reimbursed. It is also not a loan because the transfer is not expected to be repaid.

The General Fund of the City of Columbia Transferred Money