What are Enterprise funds used for?
A) To account for pension and employee benefit funds for which the governmental unit is the trustee.
B) To account for most of the basic services provided by the governmental units.
C) To account for resources provided primarily through the use of sales and service charges to parties external to the government.
D) To report resources that are legally restricted so only earnings, not principal, may be expended, and for purposes to benefit the government and its citizenry

Question

Quizplus · Accepted Answer

Enterprise funds are used to account for resources provided primarily through the use of sales and service charges to parties external to the government. Examples of enterprise funds include water, sewer, and public transportation services.

Answer: D
 This description matches the definition of a Permanent Fund, not an Enterprise Fund. Permanent funds are used to report resources that are legally restricted so only earnings, not principal, may be expended, and for purposes to benefit the government and its citizenry.

What Are Enterprise Funds Used For