Which of the Following Would not Be True Regarding

question 86

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 basic financial statements, internal service funds are reported in the proprietary funds financial statements.
• D) None of the above; all are true.

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Definitions:

Debit Balance

An excess of debits over credits in a ledger account, typically indicating an increase in assets or expenses.

Posting Error

A mistake made during the process of entering or recording financial transactions in the accounting records.

Written Off

The accounting action of declaring that an asset is no longer useful and its value has become zero, often leading to its removal from the balance sheet.

Allowance Account

A contra-asset account used to create an allowance for doubtful accounts, representing receivables that may not be collected.