2.99 See Answer

Question: Inside the City of Patience, Fund A


Inside the City of Patience, Fund A transfers $20,000 in cash to Fund B. For each of the following, indicate whether the statement is true or false and, if false, explain why.
a. If Fund A is the general fund and Fund B is an enterprise fund, nothing is shown for this transfer on the statement of activities within the government-wide financial statements.
b. If Fund A is the general fund and Fund B is a debt service fund, nothing is shown for this transfer on the statement of activities within the government-wide financial statements.
c. If Fund A is the general fund and Fund B is an enterprise fund, a $20,000 reduction is reported on the statement of revenues, expenditures, and other changes in fund balance for the govern- mental funds within the fund financial statements.
d. If Fund A is the general fund and Fund B is a special revenue fund (which is not considered a major fund), no changes are shown on the statement of revenues, expenditures, and other changes in fund balance within the fund financial statements.
e. If Fund A is the general fund and Fund B is an internal service fund and this transfer is to pay for work done, the general fund will report an expense of $20,000 within the fund financial statements.

2.99

See Answer