Which of the following statements is true about the source of Enterprise Fund revenues?
A)enterprise fund revenues may include revenues from sales to governmental agencies
B)enterprise fund revenues always come from sales to individuals and organizations other than governmental organizations
C)enterprise funds never receive governmental subsidies
D)enterprise funds record proceeds from revenue bonds as revenues

Question

Quizplus · Accepted Answer

Enterprise fund revenues can come from a variety of sources, including sales to governmental agencies. This is because an enterprise fund is a self-supporting entity that provides goods or services to the public for a fee, and governmental organizations are also part of the public. Therefore, revenue generated from sales to governmental agencies can be considered a valid source of enterprise fund revenues. Option B is incorrect because enterprise fund revenues can come from sales to both individuals and organizations, as well as to governmental entities. Option C is incorrect because some enterprise funds may receive governmental subsidies or grants. Option D is incorrect because proceeds from revenue bonds are not considered revenue, but rather a liability that must be repaid.

Which of the Following Statements Is True About the Source