The City of Crescent Hill Operates a Central Motor Pool

question 29

Multiple Choice

The City of Crescent Hill operates a central motor pool as an internal service fund for the benefit of the city's other funds and departments. In the current year, this fund charged the Parks Department $30,000 for vehicle rentals. What account should the internal service fund use to record these charges?

• A) Interfund Transfers In.
• B) Interfund Exchanges.
• C) Billings to Departments.
• D) Cost of Providing Rentals to Other Funds and Units.

---

Definitions:

Government Policy

Official strategies or principles that a government adopts and implements to guide decisions and achieve rational outcomes.

Producer Surplus

The discrepancy in the expected versus actual earnings of sellers for goods or services.

Production Quota

A limit set by an organization or government on the amount of a product that can be produced.

Support Price

A price level set by the government or a regulatory body to stabilize or support the market price of a commodity.