Which of the Following Funds Would Be Most Appropriate for Accounting

question 20

Multiple Choice

Which of the following funds would be most appropriate for accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting?

• A) Investment trust fund.
• B) Enterprise fund.
• C) Internal service fund.
• D) Special revenue fund.

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Definitions:

Statement of Cash Flows

A financial statement that compiles total data about every cash inflow a business gets from its operational activities and external funding sources, in addition to all cash outflows that cover the costs of business operations and investments in a specified timeframe.

Operating Activities Section

A component of the cash flow statement that shows cash inflows and outflows related to the core business operations.

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within their jurisdiction.

Investing Activities Section

Part of a company's cash flow statement that shows the cash spent on and received from investment activities, including purchases and sales of securities.