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What accounting problems arise if an internal service fund is operating at a loss?
If the internal service fund has positive operating income, expenditures reported in the general fund exceed the true cost of operating the government. If it is negative, the general fund understates the true cost of operating the government and net assets are effectively shifted from the internal service fund to the fund balance of the general fund.
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What accounting problems arise if an internal service fund is operated at a significant profit?
Additional problems arise if the internal service fund has significant positive (or negative) operating income. Operating income is the excess of service revenues over the costs of providing the service (i.e., operating expenses). Consider the case of an internal service fund servicing police, fire, and other vehicles used in departments reported in the General Fund. If the internal service fund has positive operating income, the expenditures reported in the General Fund exceed the true cost of operating the government. If these amounts are significant over periods of time, some of the accumulated surplus (fund balance) of the General Fund is effectively shifted to the internal service fund (net assets).
What accounting problem arises if an Internal service fund is operated at a significant loss?
If the internal service fund has positive operating income, expenditures reported in the general fund exceed the true cost of operating the government. If it is negative, the general fund understates the true cost of operating the government and net assets are effectively shifted from the internal service fund to the fund balance of the general fund.
Is it a true Statement of Financial Accounting Standards is the official guideline for accounting procedures that is prepared and maintained by the Internal Revenue Service?
No
What are some examples of an internal service fund?
An internal service fund is a fund used in governmental accounting to track goods or services shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to other departments.
Why do proprietary-type funds use full accrual accounting?
Enterprise funds and internal service funds use full accrual accounting in order to determine full cost - that is both operating costs and capital costs. Having full costs enables managers of these entities to have appropriate data for determining user charges.
Who can take money out your bank without permission?
The Internal Revenue Service can as well as those operating under court order.
What is the difference between nonpublic accounting experience and public accounting experience?
Non public accounting means working in a company , as an internal auditor/accountant as opposed to an external auditor/ accountant providing contracted services. Public accounting experience means working in a cpa firm and providing auditing/ tax/accounting service to various clients.
What term refers to a set of patches that correct problems and address security vulnerabilities in operating systems?
Service Pack
Where can one find a master accounting service?
One can find a master accounting service by using the Master Accounting service website which offers complete information on the master accounting service.
Hire an Accounting Service?
form_title=Hire an Accounting Service form_header=An Accounting Service can take care of handling all the duties of an accounting department. Do you currently have an accountant?= () Yes () No When are you looking to make this transition?=_ Please describe the type of services needed:=_
Where can you find solutions for college accounting 5th edition paradigm?
Caraway County has a Self-Insurance Internal Service Fund. If the fund purchases $100,000 of investments during the month, the
Hire a Small Business Accounting Service?
form_title=Hire a Small Business Accounting Service form_header=An accounting service can take care of your accounting needs and you can focus on running the business. How many employees do you have?=_ How do you keep track of your business accounting currently?=_ What does your company do?=_
