Indicate whether the following statements are true or false. For any false statement, indicate why it is false.
1. A direct cause- and- effect relationship exists between the revenues and expenses of an Internal Service Fund.
2. Internal Service Funds are used to account for activities that involve providing services and/ or products to the general public.
3. Internal Service Funds use the modified accrual basis of accounting.
4. All capital contributions received by an Internal Service Fund are credited directly to the Net position account.
5. A fixed budget is used to control an Internal Service Fund.
6. The budget is not usually recorded for an Internal Service Fund.
7. Fixed assets used in an Internal Service Fund are not reported in the fund- level statements.
8. Depreciation expense is not recorded in an Internal Service Fund that uses fixed assets.
9. An increase or decrease in Net position is calculated for Internal Service Funds.
10. Internal Service Funds do not have restricted net position accounts.

  • CreatedDecember 30, 2014
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