Which of the following funds would be most appropriate when accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting?
A) Investment trust fund.
B) Enterprise fund.
C) Internal service fund.
D) Special revenue fund.

Question

Quizplus · Accepted Answer

An enterprise fund is the most appropriate choice when accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting. This fund is used for activities that primarily generate revenue for the government rather than to provide services to other departments or agencies within the government. Examples of activities accounted for in enterprise funds include water and sewer services, solid waste disposal, parking facilities, and public transportation systems.

Which of the Following Funds Would Be Most Appropriate When