What Are Enterprise Funds Used For

question 122

Multiple Choice

What are Enterprise funds used for?

• A) To account for pension and employee benefit funds for which the governmental unit is the trustee.
• B) To account for most of the basic services provided by the governmental units.
• C) To account for resources provided primarily through the use of sales and service charges to parties external to the government.
• D) To report resources that are legally restricted so only earnings, not principal, may be expended, and for purposes to benefit the government and its citizenry

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Definitions:

Acceptable Standard

A recognized level of quality or attainment that is considered satisfactory.

Skilled Professional

An individual with special training, knowledge, and ability in a particular area of expertise.

Prudent Person

A legal standard referring to the conduct of a hypothetical reasonable individual under specific circumstances.

Insurance Coverage

The amount and type of protection provided by an insurance contract against various risks, losses, or damages.