GASB Statement 34 Requires Enterprise Funds to Be Used Under

question 82

Multiple Choice

GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?

• A) When debt is backed by the full faith and credit of the government issuing it.
• B) When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges.
• C) When a government is restricted by grant covenants to cover the cost of providing services for an activity.
• D) None of the above circumstances would require the use of an enterprise fund.

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Definitions:

Pulmonary Artery

A major artery in the body that transports deoxygenated blood from the heart to the lungs for oxygenation.

Left Atrium

One of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it into the left ventricle.

Left Common Carotid

The artery located on the left side of the body that supplies blood to the head and neck.

Brachiocephalic Artery

A major blood vessel originating from the aortic arch that supplies blood to the right arm and the head and neck.