Choice "B" is correct. Transfers between funds do not generally give rise to operating expenditures and revenues. However, an exception is made for quasi-external transactions (one in which the governmental fund acquires a good or service that could have been purchased from an unrelated business enterprise). Routine service charges for utilities is one example of a quasi-external transaction. The following entry should be made in the general fund to record billings from the enterprise fund:

Choice "a" is incorrect. Appropriations are recorded when the budget is formally integrated into the accounting system.
Choice "c" is incorrect. Due to electric utility enterprise fund is credited, not debited.
Choice "d" is incorrect. Transfers between funds do not generally give rise to operating expenditures and revenues. However, an exception is made for quasi-external transactions (one in which the governmental fund acquires a good or service that could have been purchased from an unrelated business enterprise). Routine service charges for utilities is one example of a quasi-external transaction.