In short
An internal service fund is a proprietary fund that provides goods or services, such as a motor pool or computer support, to other departments of the government on a cost-reimbursement basis.
Key takeaways
- It uses the full accrual basis and the economic resources focus.
- In the government-wide statements, it is usually included in governmental activities.
- Charges to other funds are revenue to the internal service fund and expenditures or expenses to the user funds.
Where it's tested
FAR: Governmental Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Governmental funds use which measurement focus and basis of accounting?