A city government makes its semiannual payment of interest on revenue bonds issued to pay for the construction of additional public transit stations. Which fund would account for the payment?
A) Debt service fund
B) Capital projects fund
C) Enterprise fund
D) Internal service fund

Question

Quizplus · Accepted Answer

Enterprise funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government. Examples of enterprise funds include utilities, airports, swimming pools and transit systems.

A City Government Makes Its Semiannual Payment of Interest on Revenue