Customers' meter deposits which cannot be spent for normal operating purposes would be classified as restricted cash in the balance sheet of which fund?
A) Internal Service
B) Trust
C) Agency
D) Enterprise

Question

Quizplus · Accepted Answer

Enterprise funds are used for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Restricted cash, such as customers' meter deposits, would be classified under this fund as it is related to the operations of the enterprise.

Customers' Meter Deposits Which Cannot Be Spent for Normal Operating