1) An internal service fund received an interfund transfer of $50,000 cash from the general fund. This transfer should be reported in the statement of revenues, expenses, and changes in fund net position as

a) An account payable.

b) An item below non-operating revenues and expenses.

c) A revenue.

d) An other financing source.

2) If the government is merely a cash conduit, grants that are to be transferred to secondary recipients by a local government should be accounted for in which funds?

a) Custodial funds.

b) Internal service funds.

c) Investment trust funds.

d) Special revenue funds.