The City of Jennings Operates a Central Motor Pool as an Internal

question 49

Multiple Choice

The City of Jennings 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 billed the Community Services Department $30,000 for vehicle rentals.What account should the internal service fund use to record these billings?

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

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Definitions:

Voting Rights

The rights of shareholders to vote on key company decisions, often exercised during annual general meetings or via proxy voting.

Joint Operation

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.

Accounting Entry

A record in a company's financial accounts that documents a business transaction, affecting at least two accounts.