For what types of activities are internal service funds used to account? Provide several examples. Is a government required to account for the activities you cite in an internal service fund, or may it account for them instead in its generalfund?
Answer to relevant QuestionsIt is sometimes asserted that the absence of speciﬁc principles as to what constitutes “cost” detracts from the objectivity of the ﬁnancial statements of not only internal service funds but also ﬁnancial statements ...Enterprise funds are also reported differently than are internal service funds in the proprietary fund statements of net position, and in the statements of revenues, expenses, and changes in net position. Explain why.The following list of cash ﬂows was taken from the statement of cash ﬂows of Grand Junction’s internal service fund (with all amounts expressed in thousands):Cash on hand at beginning of year ..... $ 122Interest from ...A city maintains an internal service fund to account for a maintenance department. The department provides services to all city departments, which-with one exception are accounted for in the city's general fund. The ...Do you think the current criteria for establishing enterprise funds are adequate? For example, are they too ﬂexible in that government may account for a wide range of activities in enterprise funds? Or are they too rigid ...
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