Which of the following funds would be most appropriate for 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 fund for 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 specifically designed to account for activities that are similar to those of a commercial enterprise, with the goal of covering all costs and generating a profit. Examples of enterprise fund activities include water and sewer utilities, transit systems, and parking garages.

Which of the Following Funds Would Be Most Appropriate for Accounting