Which of the following illustrates the appropriate basis of accounting for enterprise and internal service funds? $$\begin{array} { | l | l | l | }
\hline & \text { Enterprise Funds } & \text { Internal Service Funds } \
\hline \text { A } & \text { Modified Accrual } & \text { Modified Accrual } \
\hline \text { B. } & \text { Modified Accrual } & \text { Accrual } \
\hline \text { C. } & \text { Accrual } & \text { Modified Accrual } \
\hline \text { D. } & \text { Accrual } & \text { Accrual } \
\hline
\end{array}$$
A) Choice A.
B) Choice B.
C) Choice C.
D) Choice D.

Question

Which of the following illustrates the appropriate basis of accounting for enterprise and internal service funds? $$\begin{array} { | l | l | l | } 
\hline & \text { Enterprise Funds } & \text { Internal Service Funds } \
\hline \text { A } & \text { Modified Accrual } & \text { Modified Accrual } \
\hline \text { B. } & \text { Modified Accrual } & \text { Accrual } \
\hline \text { C. } & \text { Accrual } & \text { Modified Accrual } \
\hline \text { D. } & \text { Accrual } & \text { Accrual } \
\hline
\end{array}$$
A) Choice A.
B) Choice B.
C) Choice C.
D) Choice D.

Quizplus · Accepted Answer

Enterprise and Internal Service Funds both use the accrual basis of accounting, as they operate in a manner similar to private sector businesses.

Which of the Following Illustrates the Appropriate Basis of Accounting