Which of the following funds is a governmental fund?
A)Enterprise fund.
B)Debt service fund.
C)Internal service fund.
D)Agency fund.

Question

Quizplus · Accepted Answer

Governmental funds are used to account for the activities and resources that are primarily financed by taxes, fees, and other non-exchange transactions. Among the given options, only the debt service fund is a governmental fund as it is used to account for the resources set aside for the repayment of long-term debt and related interest. Enterprise funds are used to account for activities that are primarily financed by user fees and charges, while internal service funds are used to account for the goods and services provided by one department or agency to other departments or agencies within the same government. Agency funds are used to account for assets held by a government in a trustee capacity, such as taxes collected for distribution to other entities.

Which of the Following Funds Is a Governmental Fund