According to GASB, Enterprise Funds Must Be Used in Which

question 36

Multiple Choice

According to GASB, enterprise funds must be used in which of the following circumstances?

• A) When debt is backed solely by fees and charges.
• B) When services are provided to other governmental units for a fee.
• C) When the activities are expected to make a profit to be used to fund other government programs.
• D) None of the above; enterprise funds are optional.

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Definitions:

Equilibrium Quantity

When the market is at equilibrium, the supply of goods or services is identical to the demand at that price.

Coffee-Bean Pickers

Individuals engaged in the agricultural activity of harvesting coffee beans from plants.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equates to the quantity supplied by producers, leading to market balance.

Surplus

The amount by which the quantity of something exceeds its demand, often referring to unsold goods or surplus budget in economics.