Internal Service Funds Should Be Used Only If

question 9

Multiple Choice

Internal service funds should be used only if:

• A) The reporting government funds the activity with general obligation debt.
• B) The reporting government provides services primarily to external participants.
• C) The reporting government provides services primarily to other departments of the same government.
• D) The reporting government provides services below full cost.

---

Definitions:

Performance

A measure of the efficiency and effectiveness of actions.

Equity Theory

A concept in social psychology that proposes individuals assess their own input and outcome ratios in relationships or situations to determine fairness.

Collectivist Cultures

Cultures that prioritize the group over the individual, emphasizing interdependence, family, and community values.

Inequity

A condition of unfairness or imbalanced treatment, where rewards do not match the efforts or contributions of individuals or groups.