An Internal Service Fund (ISF)provided Services to Two Agencies Financed

question 29

Multiple Choice

An Internal Service Fund (ISF) provided services to two agencies financed by the General Fund -- the Tax Department (which it billed $200,000) and the Comptroller's Office (which it billed $100,000) .In the fund financial statements,the ISF reported a loss of $30,000.How should this information be reported in the government-wide statement of activities?

• A)Under "business-type activities," in a separate line captioned ISF,revenues of $300,000,expenses of $330,000,and net expenses of ($30,000)should be reported
• B)Under "governmental-type activities," in a separate line captioned ISF,revenues of$300,000,expenses of $330,000,and net expenses of ($30,000)should be reported
• C)ISF activities should not be reported,but expenses reported for the Tax Department and the Comptroller's Office should be increased by $20,000 and $10,000,respectively
• D)ISF activities should not be reported,but expenses reported for the Tax Department and the Comptroller's Office should be reduced by $20,000 and $10,000,respectively

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