A city operates a central data processing facility. The expenses of this facility would be accounted for using
A) The general fund.
B) An enterprise fund.
C) A capital projects fund.
D) An agency fund.
E) An internal service fund.

Question

Quizplus · Accepted Answer

An internal service fund is used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government on a cost-reimbursement basis, such as a central data processing facility.

A City Operates a Central Data Processing Facility