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

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.

Quizplus · Accepted Answer

The Central Print Shop provides services to other departments and agencies within the city, charging them for these services. This setup is characteristic of an internal service fund, which is used when a government provides services to other parts of the government on a cost-reimbursement basis.

To Fulfill the Printing Needs of Its Various Departments and Agencies