For what types of activities are internal service funds used to account?
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Option #1: Internal Service Funds and Non-expendable Endowments
Instructions:
Provide complete answers to the following two questions.
- For what types of activities are internal service funds used to account? Provide several examples. Is a government required to account for the activities you cite in an internal service fund, or may it account for them instead in its general fund?
- What is the rationale for accounting for nonexpendable endowment funds on a full, rather than a modified, accrual basis? Why is it important that depreciation be charged on long-term assets held as fiduciary fund investments?
In your analysis, include the following:
- An introduction
- Requirements 1 – 2
- Conclusion
Paper Requirements:
- Submit your responses to the questions in a 1- 2-page document in MSWord. Label each question clearly. For computations, please include them in a table.
- For written answers, please make sure your responses are well written.
- The required number of pages for the assignment does not include the title page and the reference page.
- Reach out to your instructor if you have any questions about the assignment.
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