Internal Service Funds Should Not Account for Depreciation of Capital

question 25

True/False

Internal service funds should not account for depreciation of capital assets used in their operations, since this would, in effect, charge the government twice for the same assets.

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Definitions:

Operating Systems

A software that manages computer hardware and software resources, and provides common services for computer programs.

Efficiency Gains

Improvements in the production process that allow for a greater output of goods or services without an increase in input.

Deregulation

The process of removing government restrictions and regulations in industry to allow for more competition and efficiency in the market.

Communications Industry

A sector that encompasses companies and technologies involved in the transmission of information, including media, internet, telecommunications, and broadcasting.