If enterprise funds are the predominant participants in an internal service fund, the government should report the internal service fund's residual assets, deferred inflows and outflows of resources, and liabilities within the business-type activities column in the statement of net position.

Question

Quizplus · Accepted Answer

This statement is true according to the Governmental Accounting Standards Board (GASB). If the internal service fund mostly involves enterprise funds, then the residuals, deferred inflows and outflows, and liabilities should be reported under business-type activities in the statement of net position.

If Enterprise Funds Are the Predominant Participants in an Internal