Interest Revenue Earned by an Internal Service Fund Will Be

question 31

Multiple Choice

Interest revenue earned by an Internal Service Fund will be reported on the statement of revenues, expenses, and changes in net position as

• A) Operating revenue.
• B) Nonoperating revenue.
• C) An other financing source.
• D) A capital contribution.

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Definitions:

Required Rate of Return

The minimum expected yield by investors to compensate for the risk of holding a particular investment.

Beta

An indicator of how much the risk of a security or a portfolio, known as systematic risk, fluctuates in relation to the overall market.

Expected Rate of Return

This refers to the anticipated gain or loss of an investment, expressed as a percentage of the investment's initial cost.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.