In an Internal Service Fund, the expectation is that
a. Each year's revenues should equal each year's expenses because the revenues are simply an allocation of that year's expenses.
b. Each year's revenues should equal each year's expenditures because the revenues are simply an allocation of that year's expenditures.
c. Accumulated revenues over time should approximately equal the accumulated expenses over time.
d. Expenses will exceed revenues because depreciation expense is reported in an Internal Service Fund.
Question 2
The debt created by a business when it makes a purchase on account is referred to as an
a. account payable
b. account receivable
c. asset
d. expense payable
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