For what types of activities are internal service funds used to account?

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wraaynyr

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Description

Option #1: Internal Service Funds and Non-expendable Endowments

Instructions:
Provide complete answers to the following two questions.

  1. 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?
  2. 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:

  1. An introduction
  2. Requirements 1 – 2
  3. 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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Explanation & Answer

Attached.

Running Head: ACCOUNTING

1

Accounting
Institution Affiliation
Date:

ACCOUNTING

2

Accounting procedures are essential for all organizations and businesses. They help
individuals determine the type of activities accounted for by the internal services. Also, through
accounting one can determine whether or not a government can account for the same activities in
its general funds. Further, one can learn and understand other concepts such as endowment funds
and depreciation. This paper answers two questions that are centered on internal service funds,
Nonexpendable endowment funds, and depreciation.
1. The internal service funds are utilized within the government units. They are utilized
within the units to account for the activities completed in government departments.
Further, the service fu...


Anonymous
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