Question

Light poles to be paid for in installments by affected property owners$350,000 Van used to transport supplies to all city departments on a cost reimbursement basis 65,000 Equipment used for supplying electric power to residents 1,250,000

Answer 1

Question Continuation.

Which of the above should be accounted for in an internal service fund?

Answer:

Van used to transport supplies to all city departments on a cost reimbursement basis #65,00

Explanation:

An Internal Service Fund is a type of fund that is often used by the government for accounting purposes in tracking of goods and/or service that has been shifted between two or more departments on a cost reimbursement basis.

An example of an internal service fund is the (answer) above because it involves transporting supplies to all city DEPARTMENTS.

The keyword here is DEPARTMENT because that's the essence of an internal service fund.