Which of the Following Would not Be True Regarding

question 51

Multiple Choice

Which of the following would not be true regarding internal service funds?

• A) Internal service funds use the economic resources measurement focus and accrual basis of accounting.
• B) Examples of internal service funds would include self-insurance funds, motor pool funds, and print shop funds.
• C) In the government-wide financial statements, internal service funds are most commonly reported in the business-type activities column.
• D) None of the above; all are true.

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Definitions:

Initial Value Method

An accounting approach where investments are recorded at their purchase cost without subsequent adjustment for market changes.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after eliminating the effects of intercompany transactions.

Investment Account

An account held at a financial institution that holds securities, stocks, bonds, and other investment assets.

Intangible Asset

Assets that are not physical in nature, including goodwill, software, and licensing agreements, valuable to a company's operations.