Question

discusses four types of interfund transactions. Describe two of these transactions and give examples of the two you choose to describe. Do not give the same examples as the textbook.

Answer 1

The four types of interfund transfers are

1) interfund loan

2) interfund transfers

3) interfund service

4) interfund reimbursement

Following are the examples of the two above

Examples ofoperating transfers are

(a)  transfers form the general fund to a special revenue or capital projects fund; and

b) operating subsidy transfers from the general fund to an enterprise fund. Both residual equity transfers and operating transfers are nonreciprocal interfund