Funds may be used to account for any activity whose products or services are sold for a fee to external users.Select one:a.Governmental-Type Fundsb.Fiduciary-Type Fundsc.Internal Service Fundsd.Enterprise Funds
Question
Funds may be used to account for any activity whose products or services are sold for a fee to external users.Select one:a.Governmental-Type Fundsb.Fiduciary-Type Fundsc.Internal Service Fundsd.Enterprise Funds
Solution
The correct answer is d. Enterprise Funds. These funds are used when the services provided are funded primarily by user charges. They account for any activity where products or services are sold for a fee to external users. This includes services like utilities, airports, and public transportation.
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