The use of either an enterprise fund or a governmental fund to report a particular activity is most likely optional if
A) Fees are charged to external users for goods or services.
B) The entity's pricing policies set fees and charges to recover costs, including capital costs.
C) The entity is financed solely with revenue debt, as opposed to general obligation debt.
D) The entity's costs are legally required to be recovered from fees and charges rather than general purpose taxes or similar charges.

Question

Quizplus · Accepted Answer

When fees are charged to external users for goods or services, the use of an enterprise fund is optional, as the activity could also be reported in a governmental fund if it does not meet the criteria for mandatory enterprise fund reporting.

The Use of Either an Enterprise Fund or a Governmental