A Government Plans to Create an Internal Service Fund to Account

question 9

Short Answer

A government plans to create an Internal Service Fund to account for its new central warehouse. The General Fund loans the Internal Service Fund $100,000, which is going to pay back the loan interest-free in five years. The entry in the Internal Service Fund to record this transaction would be $\begin{array}{llr}&&\text { Debit }&\text {Credit }\\ \text { A.} & \text { Cash } &\$100,000\\& \text {Revenue } &&\$100,000\\\\ \text { B. } & \text { Cash } &\$100,000\\& \text {Capital Contribution } &&\$100,000\\\\ \text { C. } & \text { Cash } &\$100,000\\& \text { Transfer from General Fund } &&\$100,000\\\\ \text { D. } & \text { Cash } &\$100,000\\& \text { Advance finm General Find} &&\$100,000\\\end{array}$

Identify different types of financial institutions and their functions.

Discern between various merger types and their industry implications.

Recognize the potential for joint ventures between different types of organizations.

Understand the concept of public ownership and its application in various sectors.

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Definitions:

Depreciable Assets

Long-term assets subject to depreciation, meaning their costs are systematically allocated over their useful lives as they are used and wear out.

Depreciation Methods

Various approaches for allocating the cost of an asset over its useful life, such as straight-line or declining balance methods.

Group Depreciation Method

An accounting technique used to depreciate a portfolio of assets collectively, often applied to assets with similar characteristics and useful lives.

Accumulated Depreciation

This represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.