Examlex

Solved

"Enterprise Funds Should Not Be Permitted to Accumulate Unrestricted Net

question 26

Essay

"Enterprise funds should not be permitted to accumulate unrestricted net position, since to do so would indicate overpricing of its services." Do you agree? Why or why not?


Definitions:

Commercial Substance

Transactions that cause a significant change in the future cash flows of a company.

Carrying Amount

The book value of assets and liabilities as recorded in an entity's financial statements, minus any accumulated depreciation or amortization.

Straight-Line Method

An approach to depreciation that involves evenly allocating an asset's cost over the period of its useful life.

Gain On Disposal

The profit realized from the sale of assets other than inventory, exceeding the book value of the assets sold.

Related Questions