Which of the following activities is most likely to be accounted for in an Internal Service Fund?
A)operation of the municipal parks and cultural centers
B)sale of printing services to all departments in the municipality
C)sale of electricity services to the municipality's residents
D)accumulation of resources to pay pension benefits to municipal employees

Question

Quizplus · Accepted Answer

Internal Service Funds are used to provide services to other departments within the same government entity. Selling printing services to other departments falls under this category. Option A refers to a government's own programs, which are accounted for in a General Fund. Option C is an example of an Enterprise Fund, which charges customers for services provided. Option D is an example of Pension Trust Funds, which accumulate resources to pay for pension benefits.

Which of the Following Activities Is Most Likely to Be