An Internal Service Fund Had the Following Transactions During the Year

question 48

Multiple Choice

An internal service fund had the following transactions during the year ended June 30, 20X9, its first year of existence:
(1) Received $1,000,000 contribution from the general fund.
(2) Acquired fleet of cars for $950,000, paying cash.
(3) Billed departments in other funds $500,000 for using cars.
(4) Incurred operating costs, exclusive of depreciation, of $240,000.
(5) Depreciation expense amounted to $250,000.
Refer to the above information. On the internal service fund's balance sheet on June 30, 20X9, total net assets should be reported at:

• A) $1,000,000.
• B) $1,010,000.
• C) $1,250,000.
• D) $910,000.

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Definitions:

Trade

The transaction involving goods, services, or both between two or more parties, either domestically or internationally.

Willing

Reflects an individual's readiness or inclination to perform a certain action or make a choice under given conditions.

Comparative Advantage

The ability of an entity to produce a particular good or service at a lower opportunity cost than another, leading to more efficient international trade and resource allocation.

Basketballs

Spherical balls used in the sport of basketball, designed for bouncing on hard surfaces and shooting into hoops.