Internal Service and Enterprise Funds

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Complete Exercises 6-2 and 6-3 and post the answers to the discussion board. Do not forget to show all necessary steps and explain how you attained the outcome.

 

6-2 What accounting problem arises if an internal service fund is operated at a significant profit?What accounting problem arises if an internal service fund is operated at a significant loss?

 

6-3 Why might it be desirable to operate enterprise funds at a profit?

 

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