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.

---

Definitions:

Income

The financial gain earned or received by an individual, household, or entity, typically measured on a monthly or yearly basis through wages, dividends, or other earnings.

Price

The financial cost of acquiring a good, service, or asset.

Apples

Edible fruits from the species Malus domestica, known for their sweet to tart flavor and use in a variety of culinary dishes and products.

Bananas

A long, curved fruit with a yellow skin and soft, sweet flesh inside, grown in many tropical regions of the world.