Under GASB Standards,an Internal Service Fund Should Prepare All of the Following

question 20

Multiple Choice

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

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Definitions:

IRS

The United States Internal Revenue Service, a federal agency responsible for collecting taxes and administering the Internal Revenue Code.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is actually received or paid out.

Bookkeeping

Bookkeeping is the systematic recording, organizing, and maintaining of financial transactions for a business or individual.