The revenues of an internal service fund are the expenditures and expenses of other funds of that government.

Question

Quizplus · Accepted Answer

Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. Thus, the revenues of an internal service fund come from the charges made to other funds within the government for the services provided, making these revenues the expenditures and expenses of those other funds.

The Revenues of an Internal Service Fund Are the Expenditures