Which of the Following Is True Regarding Internal Service Funds

question 97

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' capital assets are not accounted for in the accounts.
• D) Internal service funds use full accrual accounting.

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Definitions:

Clean Air Act

Legislation impacting on highway A/C systems. Introduced in 1992 and modified since, it staged the progressive elimination of chlorofluorocarbons from refrigerants.

Heat Energy

Heat Energy is a form of energy transferred between systems or objects with different temperatures, flowing from the higher temperature object to the lower temperature object.

1 lb of Water

A measure of mass equivalent to approximately 453.6 grams, often used to reference the weight of water for various scientific and technical calculations.

Btu

British thermal unit, a unit of measure for energy; specifically, the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.