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

Provide complete answers to the following two questions.

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  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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