Which of the Following Conditions Does Not Require That an Activity

question 47

Multiple Choice

Which of the following conditions does not require that an activity which provides services for a user fee be reported in an Enterprise Fund?

• A) Net revenues are pledged as the sole security for debt issued to finance the activity.
• B) Laws or regulations require the activity to recover its costs, including capital costs.
• C) Pricing policies require the activity to recover its costs, including capital costs.
• D) The primary source of revenue for the activity is charges to external users.

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Definitions:

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.

Progress Payments

Partial payments made for work completed to date, common in long-term projects to provide cash flow to contractors or suppliers before the final product is delivered.

Contractor

A person or company that undertakes a contract to provide materials or labor to perform a service or do a job.

Billings

The total amount of business conducted or billed to clients over a particular period, often used in professional firms.