Which of the following funds would be used to account for an activity that provides centralized purchasing and sales of goods or services to other departments or agencies of the government on a cost-reimbursement basis?
A) Enterprise fund.
B) Fiduciary fund.
C) Internal service fund.
D) Permanent fund.

Question

Quizplus · Accepted Answer

An internal service fund is used to account for activities that primarily provide goods or services to other departments or agencies of the same government entity on a cost-reimbursement basis. Examples include centralized purchasing, printing, and fleet management. The other fund types listed (enterprise fund, fiduciary fund, and permanent fund) are not intended for this purpose.

Which of the Following Funds Would Be Used to Account