Which of the Following Is True Regarding Internal Service Funds

question 99

Multiple Choice

Which of the following is true regarding internal service funds?

• A) Internal service funds provide services primarily to external users on a user charge basis.
• B) Internal service funds normally record the annual budget in the accounts.
• C) Internal service funds use full accrual accounting.
• D) Internal service funds' capital assets are not accounted for in the accounts.

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Definitions:

Diluted Earnings

Net income available to common shareholders, adjusted for the effects of all potential dilutive securities.

Ranking

Ordering or grading things or individuals in terms of quality, importance, or performance.

Impact

The effect or influence of one factor on another, often used to describe the outcomes or changes resulting from a particular action or policy.

Financial Accounting

Financial accounting is the branch of accounting that focuses on the preparation of financial statements for external users, such as investors and creditors.