Chapter 18, Problem 18.4.5E

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.

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

To choose: The correct answer.