For governmental entities, the accrual basis of accounting is used for:
A) Special revenue funds.
B) Internal service funds.
C) Debt service funds.
D) The general fund.
E) Capital projects funds.

Question

Quizplus · Accepted Answer

Internal service funds use the accrual basis of accounting, which recognizes revenues and expenses when they are earned or incurred, regardless of when cash transactions occur.

For Governmental Entities, the Accrual Basis of Accounting Is Used