A special-purpose government engaged in business-type activities financed in whole or part by fees charged to external parties are usually reported in enterprise funds.

Question

Quizplus · Accepted Answer

Enterprise funds are used to report activities that are considered to be similar to those undertaken by businesses, and are financed partially or wholly by fees charged to external parties. Therefore, special-purpose governments engaged in business-type activities financed by such fees would usually be reported in enterprise funds.

A Special-Purpose Government Engaged in Business-Type Activities Financed in Whole