Internal service funds are intended to operate on taxes or other financing sources authorized by the legally enacted revenue budget for each year; therefore, they are classified as governmental funds.

Question

Quizplus · Accepted Answer

Internal service funds are intended to operate from charges for the services they provide to other departments or agencies within the government, rather than from taxes or legally enacted revenue budgets, and they are classified as proprietary funds, not governmental funds.

Internal Service Funds Are Intended to Operate on Taxes or Other