Under GASB Standards, an Internal Service Fund Should Prepare All

question 20

Multiple Choice

Under GASB standards, an internal service fund should prepare all of the following financial statements except a:

• A) Statement of revenues, expenditures, and changes in fund balance.
• B) Statement of revenues, expenses, and changes in net position.
• C) Statement of net position.
• D) Statement of cash flows.

---

Definitions:

Gross Profit

a company's revenue minus its cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products.

Contribution Margin

The amount of money a product's sales generate over its variable costs, used to cover fixed costs and contribute to net profit.

Net Profit

The financial gain remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Industrial Advertising

Advertising aimed at individuals and organizations who purchase products for manufacturing or reselling other products.