Under GASB Statement 34,enterprise Funds Must Be Used in Which

question 98

Multiple Choice

Under GASB Statement 34,enterprise funds must be used in which of the following circumstances?

• A) When debt is backed solely by fees and charges.
• B) When services are provided to other governmental units for a fee.
• C) When the activities are expected to make a profit to be used to fund other government programs.
• D) None of the above; enterprise funds are optional.

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Definitions:

Risky Asset

An investment that holds a significant chance of losing all or part of its value.

Risk-free Asset

An investment option that ensures a definite return and carries no risk of losing money.

Portfolio Weights

The percentages of the total investment that are held in various components of a portfolio.

Portfolio's Total Value

The sum of all assets, including securities and cash, within an investment portfolio.