The General Fund paid $4,000 to the Internal Service Fund for services rendered. Which of the following statements accurately reflects the reporting effects of the transaction?

Question

Quizplus · Accepted Answer

The Internal Service Fund will report revenues of $4,000 because it provided services to the General Fund, and the payment for these services is considered revenue for the Internal Service Fund. Internal Service Funds operate similarly to private businesses, and payments received for services rendered are recorded as revenues.

The General Fund Paid $4,000 to the Internal Service Fund