Customers' Meter Deposits, Which Cannot Be Spent for Normal Operating

question 41

Multiple Choice

Customers' meter deposits, which cannot be spent for normal operating purposes, would be classified as restricted cash in the balance sheet of which fund type?

• A) Internal service fund.
• B) Private-purpose trust fund.
• C) Enterprise fund.
• D) Special revenue fund.

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Definitions:

EBIT

A profitability metric that accounts for all of a company's expenses except for interest and income taxes, reflecting the firm's profit.

Accounts Receivable

sums of money owed to a company by customers for goods or services delivered or used but not yet paid for.

Inventory

The total amount of goods and materials held by a business for the purpose of resale, production, or repair.

Total Equity Value

The total value of all shareholder equity in a company, calculated as the market value of total assets minus total liabilities.