Internal service funds should be used only if:
A) The reporting government funds the activity with general obligation debt.
B) The reporting government provides services primarily to external participants.
C) The reporting government provides services primarily to other departments of the same government.
D) The reporting government provides services below full cost.

Question

Quizplus · Accepted Answer

Internal service funds should be used when the reporting government provides services primarily to other departments of the same government. These funds are appropriate when one department charges another for goods or services that it provides to other departments within the same government entity.

Internal Service Funds Should Be Used Only If