An Enterprise Fund must be used whenever a government charges fees to external users for goods or services.

Question

Quizplus · Accepted Answer

Enterprise Funds may be used to report an activity for which a fee is charged to external users, but they are not required to be used unless certain specific criteria are met. For example, an Enterprise Fund need not be used when an activity charges incidental fees such as inspection fees or admissions fees. Enterprise Funds must be used when certain other criteria are met; for example, when the activity is financed with debt secured solely by a pledge of the net revenues from the fees charged by the activity.

An Enterprise Fund Must Be Used Whenever a Government Charges