How are interfund services provided and used accounted for and what happens in the government-wide statements?

• A. Interfund services are recorded as revenue in the receiving fund.
• B. They are recorded as interfund transfers with no eliminations in government-wide statements.
• C. Interfund services provided and used are recorded within internal service funds; charges are eliminated in government-wide statements to avoid double counting.
• D. They are ignored in the financial statements.

Answer: (C)