Activities of a Central Motor Pool That Provides and Services

question 23

Multiple Choice

Activities of a central motor pool that provides and services vehicles for the use of municipal employees on official business should be accounted for in

• A) General Fund.
• B) Enterprise Fund.
• C) Internal Service Fund.
• D) Special Revenue Fund.

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Definitions:

Break-Even Point

The point at which total costs and total revenues are exactly equal, resulting in no net profit or loss for a business.

Net Operating Income

The income from a company's primary business operations, excluding deductions of interest and taxes.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period of time, such as rent or salaries.

Break-Even Point

The level of production or volume of sales at which total costs and total revenue are equal, resulting in no net loss or gain.