Internal Service Funds differ from Enterprise Funds because Internal Service Funds
A)are a proprietary fund.
B)are intended to show a profit.
C)charge for their services.
D)provide goods and services primarily to other government agencies.

Question

Quizplus · Accepted Answer

Internal Service Funds are used to account for the provision of goods or services by one department of a government to other departments of the same government or to other governmental units, typically on a cost-reimbursement basis. Enterprise Funds, on the other hand, are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is to make a profit from fees charged to external users.

Internal Service Funds Differ from Enterprise Funds Because Internal Service