The Use of an Enterprise Fund Is Required by Generally

question 38

Multiple Choice

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:

Self-Serving Bias

A common cognitive bias that causes individuals to attribute their successes to internal factors and failures to external factors.

Introvert

Describes a person who tends to be more focused on internal thoughts and feelings rather than seeking external stimulation.

Extravert

An individual characterized by an outgoing, energetic, and sociable disposition.

External Locus

A belief that one's successes or failures result from external factors beyond their control.