In a combination properly accounted for as a transfer, the transferee government should recognize the net fund balance of an operation it receives as a(n):
a.Other financing source.
b.Deferred inflow.
c.Special item.
d.Other financing use.
Answer:C
Choice "C" is correct. Transferee governments should recognize the net fund balance of an operation it receives as a special item in the period the transfer occurs.Choice "a" is incorrect. Transferee governments classify the net fund balances of the operation it receives as a special item, not an other financing source.Choice "d" is incorrect. Transferee governments classify the net fund balances of the operation it receives as a special item, not an other financing use.Choice "b" is incorrect. Transferee governments classify the net fund balances of the operation it receives as a special item, not a deferred inflow.
