Which of the Following Is NOT True About Internal Service

question 12

Multiple Choice

Which of the following is NOT true about internal service funds as reported in the fund financial statements?

• A) Costs reported by internal service funds are reported twice within the same set of financial statements.
• B) Billing rates must be set to cover the full cost of providing the goods or services.
• C) Depreciation can be charged to governmental funds through the billing rates established by the internal service fund.
• D) Deficits or surpluses in the general fund can be transferred to the internal service fund by adjusting the billing rates.

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Definitions:

Bread Flour

A type of flour with a higher protein content than all-purpose flour, designed specifically for baking bread, providing the necessary gluten structure for a good rise.

Protein

Large biomolecules consisting of one or more long chains of amino acid residues, crucial for almost all biological processes.

Electrochemistry

The branch of chemistry that deals with the relationship between electrical properties and chemical reactions, including the study of batteries and electroplating.

Platinum

A dense, malleable, and highly unreactive metallic element with symbol Pt and atomic number 78, used in jewelry, vehicle emission control devices, and as a catalyst.