Which of the Following Is True Regarding Internal Service Funds

question 99

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

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Definitions:

Drawer's Signature

The signature of the person who writes a check or draft, legally binding the drawer to the terms of the document.

Re-Credit

The process of restoring funds to an account, typically after a return or correction of a billing error.

Debtor

Under Article 9 of the Uniform Commercial Code, any party who owes payment or performance of a secured obligation, whether or not the party actually owns or has rights in the collateral.

Creditor

An individual or institution that lends money or extends credit to another, with the expectation of being repaid.