Internal Service Funds may report each of the following net position classifications except

Question

Quizplus · Accepted Answer

Internal Service Funds, which are used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis, typically do not report nonspendable net position. Nonspendable net positions are more relevant to governmental funds where certain amounts cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact.

Internal Service Funds May Report Each of the Following Net