General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund. Long term debts: Long-term debts are those debts of the company that has a maturity period of 12 months or more. These are non- current debts of the company which will not become due within one year. These are financial obligations that extent beyond 12-month period. Internal service fund: This is reporting of sales and purchase of goods and services and also internal fund transfer between business departments. This is to approximate the external exchange values as revenues in seller’s fund and expenses in purchaser’s funds. To choose: The correct option.

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Chapter 18, Problem 18.3.9E

To determine

Introduction: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

Long term debts: Long-term debts are those debts of the company that has a maturity period of 12 months or more. These are non- current debts of the company which will not become due within one year. These are financial obligations that extent beyond 12-month period.

Internal service fund: This is reporting of sales and purchase of goods and services and also internal fund transfer between business departments. This is to approximate the external exchange values as revenues in seller’s fund and expenses in purchaser’s funds.

To choose:The correct option.

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