An Example of an Activity That Would Not Normally Be

question 114

Multiple Choice

An example of an activity that would not normally be accounted for in an internal service fund would be:

• A) Motor pool.
• B) Garbage collection.
• C) Print shop.
• D) Central storeroom.

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Definitions:

Pre-Tax Cost

The expense or cost incurred by an entity that has not yet been reduced by considerations for taxes.

Leverage Operations

Financial strategies involving the use of borrowed money to increase the potential return of an investment.

Outstanding Stock

Refers to the total shares of a company that are currently owned by investors, including those held by institutional investors and company officials.

Earnings Per Share

The profit of a company divided by its total number of common stock shares outstanding, showing how profitable the company is.