The ______ Funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government and it is the intent of the government to measure net profit or loss.
A) Special revenue
B) General
C) Enterprise
D) Agency

Question

Quizplus · Accepted Answer

The description fits the definition of Enterprise Funds, which are used to account for operations that are primarily financed and operated in a manner similar to private businesses. These funds are intended to generate a profit or loss from selling goods or services to external customers, and the government has an ongoing management responsibility for their operations. Special Revenue Funds are used to account for specific revenue sources that are legally restricted to a particular program or purpose. General Funds are the primary operating funds of a government, accounting for most revenue sources and types of expenditures. Agency Funds are used to report resources held by the government in a custodial capacity.

The ______ Funds Are Used When Resources Are Provided Primarily