Any Internal Service Fund Balances That Are Not Eliminated in the Consolidation

question 3

Multiple Choice

Any internal service fund balances that are not eliminated in the consolidation process should generally be presented on the government-wide financial statements

• A)Should not be presented on the government-wide financial statements.
• B)In the internal service fund column.
• C)In the governmental activities column.
• D)In the business-type activities column.

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Definitions:

Compounded Annually

Interest calculated on the initial principal and the accumulated interest from the past year added together once per year.

Term Deposit

A type of bank deposit that has a fixed term and typically offers a higher interest rate than a regular savings account.

Interest Rate

The percentage of a sum of money charged for its use.

Original Principal

The initial amount of money borrowed or invested before any interest or earnings are applied.