Question

Transfers from the General Fund to the capital projects fund to provide partial financing of a capital project would be reported by the capital projects fund as a(an):

1) Fund balance addition.
2) Revenue.
3) Other financing source.
4) Current liability.

Answer 1

Transfers from the General Fund to the capital projects fund to provide partial financing of a capital project would be reported as an other financing source.

Step-by-step explanation:

Transfers from the General Fund to the capital projects fund to provide partial financing of a capital project would be reported by the capital projects fund as a 3) Other financing source.

When money is transferred from one fund to another within an organization, it is classified as an other financing source. This indicates that the receiving fund is obtaining funds from an external source, in this case, the General Fund.

For example, if a city government transfers money from its General Fund to its capital projects fund for the construction of a new library, the capital projects fund would report this transfer as an other financing source.