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07-04-2020
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The General Fund of a city pays all utility bills received from private companies for services provided to city agencies. It then bills other funds for their shares of the bills. On May 10, the General Fund pays an electric bill for $230,000. It then sends a bill to the Library Special Revenue Fund for $4,000, representing the library's share of the bill. Which entry should the General Fund make when it sends the bill to the Library Special Revenue Fund?

Respuesta :

alizaybhatti43 alizaybhatti43

10-04-2020

Options:

a. expenditures - utilities

b. due from library special revenue fund

c. transfer out to library special revenue fund

d. due to library special revenue fund

Answer:

Correct answer is A

Explanation:

The entry that the General Fund make when it sends the bill to the Library Special Revenue Fund should be expenditures - utilities .

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