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A payment made by the General Fund to a debt service fund would not be recorded in the governmental activities journal.

True
False

User Rehana
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Final answer:

A payment made by the General Fund to a debt service fund should be recorded in the governmental activities journal as it reflects a movement of resources that affects the government's financial statements.

Step-by-step explanation:

The question is inquiring whether a payment made by the General Fund to a debt service fund is recorded in the governmental activities journal. The accurate recording of transactions within different funds is a critical aspect of governmental accounting. When the General Fund makes a payment to the debt service fund, it is essentially transferring resources to pay for debt obligations. This transaction should indeed be recorded in the governmental activities journal, as it reflects a movement of resources that impacts the financial position of the government as a whole. Ignoring such a transaction could lead to inaccuracies in the government's financial statements, which would not comply with proper accounting standards and principles.

User LukasTong
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