An Enterprise Fund Should Be Used When a Legal Requirement

question 69

True/False

An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges.

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Definitions:

Production Units

The measure of output from a production process, with each unit representing a completed item.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery, buildings, and vehicles.

Capital Expenditures Budget

The capital expenditures budget outlines the planned spending on assets that have a long term impact on the company, such as buildings, machinery, and equipment.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specified period, often used to assess liquidity.