What does internal service fund mean on the CPA exam?
Internal service fund. A proprietary fund that supplies goods or services to other parts of the same government on a cost-reimbursement basis, such as a motor pool.
Defined against GASB 34.
Which CPA exam sections use internal service fund?
Internal service fund appears in the BAR section of the CPA exam.
Other terms defined against GASB 34
- capital assets: In GOVERNMENTAL reporting, long-lived assets such as land, buildings and infrastructure.
- enterprise fund: A proprietary fund used where a government charges outside users for goods or services, run on the full accrual basis like a business.
- full accrual: Recognizing revenue when earned and expense when incurred, and reporting every asset and liability including long-term ones.
- governmental activities: The part of a government's operations financed mainly by taxes rather than by fees, reported on the government-wide statements on the full accrual basis.
- governmental funds: The funds that account for tax-supported activity, reported on the modified accrual basis with a current financial resources focus.
- management's discussion and analysis: A narrative overview management provides ahead of the financial statements.
- modified accrual: The basis for governmental fund statements: revenue when measurable and available, expenditure when the liability is incurred.
- required supplementary information: Schedules a government must present outside the basic statements, such as budgetary comparisons and pension trend data.
Related terms
- committed fund balance: Fund balance constrained to a purpose by formal action of the government's own highest level of decision-making authority, and removable only by the same kind of action.
- restricted fund balance: Fund balance constrained to a purpose by an external party, a constitutional provision, or enabling legislation.
- accounts receivable: Amounts customers owe for goods or services already delivered.
- contract asset: The right to consideration for goods or services already transferred, where the right still depends on something other than the passage of time.
- contract liability: The obligation to transfer goods or services for which the customer has already paid, or for which payment is unconditionally due.
- General Data Protection Regulation: The European Union regulation governing processing of personal data.