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In Which of the Following Circumstances Must an Enterprise Fund

Question 43

Multiple Choice

In which of the following circumstances must an enterprise fund be used to account for the activity?


A) A newly created electric utility fund will finance its operations by a charge to users based on kilowatt hours used.
B) To finance the acquisition of plant facilities, a newly created electric utility issues general obligation debt.
C) To finance the acquisition of plant facilities, a newly created electric utility issues revenue bonds that will be repaid solely from operations of the electric utility.
D) To acquire needed plant facilities, a newly created electric utility enters into long-term lease agreements.

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