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A city-owned electric utility sent bills to the city for electricity provided for the city's administrative offices. Which fund(s) are affected by this transaction?

a) Enterprise Fund
b) General Fund
c) Special Revenue Fund
d) Internal Service Fund

User Bdeem
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1 Answer

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Final answer:

The transaction affects the Internal Service Fund and the General Fund. The Internal Service Fund bills the General Fund for the electricity used by the city's administrative offices, as these types of intra-governmental transactions are recorded in these funds.

Step-by-step explanation:

The transaction described involves the city-owned electric utility sending bills to the city for electricity used in the city's administrative offices. This scenario would affect the Internal Service Fund and potentially the General Fund. The Internal Service Fund is used when one department of a government provides services to other departments on a cost-reimbursement basis.

As the city's electric utility is providing electricity to the administrative offices, it would bill the General Fund for these services since administrative offices are usually financed through the General Fund. It is unlikely to involve the Enterprise Fund as this type of fund is for services provided to the public on a user charge basis, and the Special Revenue Fund typically only accounts for revenue from specific taxes or grants dedicated to specific purposes and thus would not be relevant in this scenario.

User Manoj R
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