In an interfund billing, the internal service fund would show a receivable labeled Due From General Fund. In which fund would this receivable exist?

• A. Governmental Fund
• B. Internal Service Fund
• C. Enterprise Fund
• D. Private Purpose Trust

Answer: (B)

Interfund billing happens when one fund provides services to another fund, and the provider records an interfund receivable while the receiving fund records a corresponding interfund payable. The internal service fund is the entity that bills other funds for centralized services (like fleet, IT, or central printing). Therefore, when the General Fund is billed for those services, the internal service fund records a receivable labeled Due From General Fund. The General Fund would record a payable to the internal service fund for the same amount. Other fund types aren’t the service providers in this scenario, so they don’t hold this receivable. In the government-wide view, these interfund balances are eliminated, but within fund-level statements the receivable sits in the internal service fund.