Question

1.Which of the following activities is required by GASB standards to be reported in an Internal Service Fund?

(1) Centralized data processing.
(2) Centralized janitorial services.

a. (1) only
b. (2) only
c. Both (1) and (2)
d. Neither (1) and (2)

Answer 1

Both centralized data processing and centralized janitorial services are required to be reported in an Internal Service Fund.

Step-by-step explanation:

According to GASB (Government Accounting Standards Board) standards, both centralized data processing and centralized janitorial services are required to be reported in an Internal Service Fund. Internal Service Funds are used to account for operations that provide goods or services, on a cost-reimbursement basis, to other departments or agencies within a governmental entity. These activities are considered integral to the operations of the governmental entity and therefore should be reported in an Internal Service Fund.