Which of the following is a difference between enterprise funds and internal service funds?
A) The use of cost accounting by enterprise funds but not internal service funds.
B) The customers who primarily benefit from the fund's service.
C) The number of fund financial statements required.
D) The measurement focus on economic resources for enterprise funds and current financial resources for internal service funds.

Question

Quizplus · Accepted Answer

The primary difference between enterprise funds and internal service funds is the customers who benefit from the services provided by the fund. Enterprise funds primarily benefit outside customers, while internal service funds primarily benefit internal customers within the government entity. The other options listed may be differences between the two types of funds, but they are not the primary or defining difference.

Which of the Following Is a Difference Between Enterprise Funds