The City of Crescent Hill Operates a Central Motor Pool

question 61

Multiple Choice

The City of Crescent Hill 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 Parks 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:

Balance Sheet

A document showcasing a corporation's assets, obligations, and the equity held by shareholders on a specific date.

Sales On Account

Transactions where goods or services are delivered but payment is delayed, creating an account receivable on the balance sheet.

Average Sale Period

The average sale period is a financial metric indicating the average time taken to convert inventory into sales, also known as the inventory turnover period.

Balance Sheet

An accounting document that outlines a business's resources, debts, and stakeholders' equity at a designated time.