Enterprise Fund payments in lieu of taxes to the General Fund that are not payments for services from a government's Enterprise Fund to its General Fund should be reported by the Enterprise Fund as

Question

Quizplus · Accepted Answer

Enterprise Fund payments in lieu of taxes are made from the Enterprise Fund to the General Fund and are considered transfers out. These payments are not considered operating expenses because they are not payments for services. They are also not considered nonoperating expenses because they do not result from the fund's typical operations. Therefore, the appropriate classification for these payments is transfers out.

Enterprise Fund Payments in Lieu of Taxes to the General