Internal service funds are most commonly reported in which section of the Government-wide financial statements? a. governmental activities.
b. business type activities.
c. both A & B.
d. neither of the above.

a. Governmental activities

Explanation:

Internal Service funds in Government record entries that are related to the provision of goods and services from one government department to another on a cost reimbursement basis. The fund therefore shows the cost of providing some goods and services.

In Government-wide financial statements, it is therefore recorded under Governmental activities as it has to do with internal Government departments.

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