The account Interfund Transfers In would be classified in a General Fund statement of revenues, expenditures, and changes in fund balances as a(an):

• A. Revenue
• B. Expenditure
• C. Other financing source
• D. Asset

Answer: (B)

In governmental fund statements, transfers between funds are not revenues or expenditures. When one fund transfers resources to another, the transaction is a financing activity within the government. An interfund transfer in is shown as an Other Financing Source on the General Fund’s statement of revenues, expenditures, and changes in fund balances (and the corresponding transfer out would be an Other Financing Use). It increases the receiving fund’s resources, but it does not represent operating revenue or an expense for goods or services, and it is not an asset. This classification keeps the financing nature of internal transfers clear and separate from actual program revenues or expenditures.