Interfund Activity, Including Transfers

Free CPA BAR (Business Analysis & Reporting) lesson in State and Local Governments. 19 min read, ~2,881 words.

Four categories of interfund activity: loans/advances, services provided and used, transfers, and reimbursements, each has distinct journal entry treatment. Interfund loans create receivables and payables; transfers create "transfers in" and "transfers out" with no expectation of repayment. Reimbursements are not reported as interfund activity, the paying fund records the expenditure/expense...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• III.C5

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