Interfund services provided and used represent transactions involving sales and purchases of goods and services between funds. One fund records a revenue and the other fund records an expenditure or expense. These transactions are sometimes called quasi-external transactions because these transactions are reported as if they were transactions with parties outside the government.

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Interfund Services

Question 125

Multiple Choice

Interfund services:

A) Provided and used represent transactions involving sales and purchases of goods and services between funds.
B) Are sometimes called quasi-external transactions.
C) Are recorded as if they were transactions with parties outside the government.
D) All of the above apply to interfund services.

Correct Answer: