Which of the Following Is NOT True About Internal Service

question 12

Multiple Choice

Which of the following is NOT true about internal service funds as reported in the fund financial statements?

• A) Costs reported by internal service funds are reported twice within the same set of financial statements.
• B) Billing rates must be set to cover the full cost of providing the goods or services.
• C) Depreciation can be charged to governmental funds through the billing rates established by the internal service fund.
• D) Deficits or surpluses in the general fund can be transferred to the internal service fund by adjusting the billing rates.

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Definitions:

Empiricist

A philosophical approach that emphasizes knowledge derived from sensory experience as the basis of understanding.

Personality Traits

Enduring characteristics that describe an individual's behavior, thinking, and emotions, often used to predict or explain their actions and reactions.

Biologically Endowed

Having natural traits, abilities, or characteristics that are genetically inherited or determined.

Mental Representations

Internal cognitive symbols that represent external reality, allowing individuals to think about objects and events not present.