The city operates a public pool where each person is assessed a $2 entrance fee. Which fund is most appropriate to record these revenues?
A) General Fund.
B) Enterprise Fund.
C) Special Revenue Fund.
D) Internal Service Fund.
E) Capital Projects Fund.

Question

Quizplus · Accepted Answer

The most appropriate fund to record revenues from a public pool would be an Enterprise Fund. This is because the pool is a self-sustaining entity that generates its own revenue through user fees, and its expenses can be directly attributed to the operation of the pool. Enterprise funds are used for activities that are financed and operated in a manner similar to private businesses, and are responsible for their own funding and operations. Therefore, the public pool would be considered an enterprise and the revenue generated from it would be recorded in an Enterprise Fund.

The City Operates a Public Pool Where Each Person Is