When Charges to External Users Are a Principal Revenue Source

question 22

Multiple Choice

When charges to external users are a principal revenue source of an activity, the use of an Enterprise Fund is required by generally accepted accounting principles in each of the following situations except

• A) When user fees are charged for the majority of the activity's operations.
• B) When an activity is financed with debt that is secured solely by the pledge of revenues.
• C) When laws and regulations require that the activity's costs be recovered with fees and charges.
• D) When pricing policies of the activity establish fees and charges are designed for cost recovery.

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Definitions:

Social Cognitive Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.

Rewards

Benefits, often in the form of goods, services, or recognition, given to an individual as compensation or encouragement for their behavior or performance.

Modeling

The process of learning behaviors, attitudes, or emotional reactions through observing others.

Middle Childhood

A developmental stage that typically covers the ages from 6 to 12, characterized by increased cognitive and social abilities.