To fulfill the printing needs of its various departments and agencies, the City has established a Central Print Shop, which bills the various departments and agencies of the city for printing services rendered.The Central Print Shop should be accounted for in which of the following funds.
A)Internal service fund.
B)Enterprise fund.
C)General fund.
D)Special revenue fund.

Question

Quizplus · Accepted Answer

An internal service fund is used to account for activities that provide goods or services to other departments or agencies of the same government. The Central Print Shop is providing printing services to various departments and agencies of the city, which makes it an internal service fund.

To Fulfill the Printing Needs of Its Various Departments and Agencies