Interfund Transfers Occur Between Individual Funds in the Same Government

Multiple Choice

Interfund transfers occur between individual funds in the same government system without the requirement of repayment. If the General Fund transferred money to the Debt Service Fund, how would the General Fund account for the transaction?

A) As a non-operating expense.
B) As an operating expense.
C) As a use of funds on the activities statement.
D) As a source of funds on the activities statement.