Which of the Following Is Regarding Financial Reporting for Internal

question 4

Multiple Choice

Which of the following is regarding financial reporting for internal service funds?

• A) Internal service funds are reported in the governmental fund financial statements.
• B) Internal service funds are aggregated and reported as a major fund in the proprietary fund financial statements.
• C) Internal service funds are generally reported in the Business-type Activities column of the government-wide financial statements.
• D) Internal service funds are generally reported in the Governmental Activities column of the government-wide financial statements.

---

Definitions:

Finished Goods Inventory

The assortment of goods that are marketed and ready but have not found buyers.

Labor Costs

The total monetary costs associated with the employment of labor, including wages, benefits, and taxes.

Job Order Costing System

An accounting system that accumulates costs by job, allowing for detailed tracking of the cost of materials, labor, and overhead on a per-job basis.

Direct Labor Costs

The total cost of all labor that can be directly attributed to the production of goods or services, including wages and salaries of the employees actually making the products.