Governments must account for an activity in an enterprise fund only if local laws specifically require use of an enterprise fund.

Question

Quizplus · Accepted Answer

Governments may be required to use an enterprise fund for an activity if it meets certain criteria established by accounting standards, not just local laws. These criteria often relate to the operation of the activity in a manner similar to a commercial business where the costs of providing services are recovered primarily through user charges.

Governments Must Account for an Activity in an Enterprise Fund