A city's Water and Sewer Enterprise Fund should include which of the following components in its statement of net position?
A)only assets,liabilities,and net position
B)assets,deferred outflows,liabilities,deferred inflows,and net position
C)assets,deferred outflows,liabilities,deferred inflows,and retained earnings
D)assets,liabilities,and retained earnings

Question

Quizplus · Accepted Answer

A Water and Sewer Enterprise Fund is an activity in which a government sells goods or services to the public. Therefore, it is required to use the accrual basis of accounting and report deferred outflows and deferred inflows of resources related to pensions, among other transactions. Retained earnings are not typically used in governmental accounting, as they are associated with for-profit entities.

A City's Water and Sewer Enterprise Fund Should Include Which