Which of the Following Funds Use Business Accounting

question 109

Multiple Choice

Which of the following funds use business accounting?

• A) Internal Service Fund
• B) Enterprise Fund
• C) General Fund
• D) Both A & B

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Definitions:

Operating Activities

Activities that relate to the core operations of a business, including the production, sales, and distribution of the business's goods or services.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and investments.

Direct Method

An accounting method used to allocate service department costs directly to producing departments without any intermediate allocation.

Operating Activities

Operating activities involve the primary, day-to-day activities that a company engages in to generate revenue, such as sales, provision of services, and production.