An internal service fund provided services to a General Fund department. At the time of billing,the credit entry in the internal service fund would be:

Question

Quizplus · Accepted Answer

The credit entry in internal service fund while billing the General Fund department should be recorded as Operating Revenues-Charges for Services as it represents the earnings and revenues generated by the internal service fund for providing services to the other governmental entities or departments. Other Financing Sources-Transfer In represents non-operating, non-exchange transactions, such as transfers of financial resources between funds, and is not applicable in this scenario. Other Financing Sources-Charges for Services and Due from General Fund are also incorrect, as they do not accurately reflect the revenue earned by the internal service fund for the services provided.

An Internal Service Fund Provided Services to a General Fund