An Internal Service Fund Normally Uses Which of the Following

question 55

Multiple Choice

An internal service fund normally uses which of the following budgetary accounts?

• A) Estimated Revenues.
• B) Appropriations.
• C) Encumbrances.
• D) An internal service fund normally does not use budgetary accounts.

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Definitions:

Income Tax Expense

The accounting term for the income taxes payable within a given period, reflecting the cost of the taxes a company must pay based on its earnings.

Present Value

Present value is a financial concept that calculates the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, often used as an investment for retirement.

Earnings Rate

A measure of the profitability of a company or investment, typically expressed as a percentage.