You are assessing the financial condition of a county. Its financial statements have captions for transfers in and transfers out, both containing significant amounts.
What consideration should you give to these transfers in assessing financial condition?
a. do not consider them in your analysis, because transfers in will equal transfers out
b. see if transfers in equal transfers out. Then, check the balance sheet to see if the captions due to and due from also are equal. If so, no further review is needed
c. see if the transfers are recurring, rather than one-shots. If they are recurring, no further inquiry is needed
d. only transfers in should be considered
Question 2
Which of the following is nota special journal?
a. cash receipts journal b. purchases journal
c. accounts receivable journal d. cash payments journal
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The Economics of Money, Banking and Financial Markets, Business School Edition