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 governmental,or to other governments,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 provide goods or services to other departments or agencies of the governmental, or to other governments, on a cost-reimbursement basis. This includes centralized purchasing and sales of goods or services. Enterprise funds are used to account for activities that provide goods or services to the general public for a fee, while fiduciary funds are used to account for resources held by the government in a custodial capacity. Permanent funds are used to account for resources that are legally restricted to support specific programs or purposes.

Which of the Following Funds Would Be Used to Account