Question

Internal service funds Answer reported in the proprietary funds Statement of Net position and Statement of Revenues, Expenses and Changes in Fund Net position. Internal service funds, however, are usually presented in the government-wide statements as Answer activities.

True or False

Answer 1

Answer:

TRUE

Step-by-step explanation:

The Internal Service Funds is a Government-Wide Financial Statements which uses accrual-based accounting.

When the government-wide financial statements are prepared, the Internal Service Funds are rolled into the whole of the Proprietary Funds.

The Internal service funds are a proprietary fund which is seen on a portion of the fund statements.

Thus, the balance total usually includes the total of the Internal Service Fund.

Internal Service Funds are usually reported in all of the proprietary fund financial statements in a separate column to the right of the total enterprise funds column. Major fund requirements do not apply to the internal service funds and their information is combined into one column.

Answer 2

TRUE

Step-by-step explanation:

It is a correct assertion that Internal service funds are usually presented in the government-wide statements.

Internal service funds are contained in the two components of government-wide statements which are: Statement of Activities and Statement of Statement of Net Assets, just like we have the income statements and balance sheet for the non-government sector.

Hence, in all government or proprietary fund financial statements, you find internal service funds collapsed under a heading known as ''Governmental Activities Column''