Accounting Assignment | Buy Homework Help

1. The billings for transportation services provided to other governmental units are recorded by the internal service fund as:

a. Interfund exchanges

b. Intergovernmental transfers

c. Transportation appropriations

d. Operating revenues

2. Which of the following transactions would be not allowed in an internal service fund?

a. The purchase of capital items

b. Borrowing from another fund

c. Transfers from other funds

d. None of the above

3. Initial financing for internal service fund activities may be obtained from

a. Advances from another fund

b. Transfers from another fund

c. Transfer of related materials held by governmental departments

d. All of the above

4. Carlton City serves as a collecting agency for the local independent school district and for a local water district. For this purpose, Carlton has created a single agency fund and charges the other entities a fee of 1 percent of the gross amounts collected. (The service fee is treated as a general fund revenue.) During the latest fiscal year, a gross amount of $268,000 was collected for the independent school district and $80,000 for the water district. As a consequence of the foregoing, Carlton’s general fund should:

a. Recognize receipts of $348,000

b. Recognize receipts of $344,520

c. Record revenue of $3,480

d. Record encumbrances of $344,520

5. Through an internal service fund, Floyd County operates a centralized data processing center to provide services to Floyd’s other departments. In 2012, this internal service fund billed Floyd’s parks and recreation fund $75,000 for data processing services. What account should Floyd’s internal service fund credit to record this $75,000 billing to the parks and recreation fund?

a. Operating revenues

b. Interfund exchanges

c. Intergovernmental transfers

d. Data processing department expenses. Get Accounting Help Today