Internal Service and Enterprise Funds Are Both Proprietary Funds

question 96

Multiple Choice

Internal service and enterprise funds are both proprietary funds. Which of the following statements is correct?

• A) They both use the economic resource focus and accrual accounting
• B) Enterprise funds are used to report on activities that provide goods and services to other funds, departments who are charged on a cost-reimbursement basis.
• C) Enterprise funds are appropriate when the predominant user of goods and services is the government.
• D) Depreciation is not recorded in proprietary funds

---

Definitions:

Alzheimer's Disease

A progressive neurological disorder characterized by memory loss, cognitive decline, and personality changes.

Brain Disorder

A range of conditions affecting the structure or function of the brain, leading to cognitive, emotional, or physical impairments.

Personality Changes

Alterations in a person's behavior, feelings, or thoughts that can be a result of various factors including psychological conditions, brain injury, and substance use.

Nutritional Intake

The total amount of nutrients consumed through food and beverages over a certain period of time.