When a New Internal Service Fund Is Established with a Transfer

question 66

Multiple Choice

When a new internal service fund is established with a transfer of funds (not to be repaid) , which account would be credited in the internal service fund?

• A) Cash.
• B) Interfund Transfer In.
• C) Interfund Transfer Out.
• D) Estimated Revenues.

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Definitions:

Inventory

The items or goods a company holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Low-Cost Strategy

A competitive strategy focusing on becoming the lowest cost producer in an industry to offer products or services at the lowest price possible to consumers.

Production Lead Time

The total time required to manufacture an item, including order preparation, queue, setup, run, inspection, and put-away time.

Supply-Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.