A municipal government decides to construct and operate a public swimming pool.It will charge user fees to recover its costs,but will allow senior citizens and children under the age of three to enter at half-price.What type of fund should it use for this purpose?
A)Special Revenue Fund
B)Enterprise Fund
C)Agency Fund
D)Private Purpose Fund

Question

Quizplus · Accepted Answer

An enterprise fund is used when a government engages in activities that are primarily financed through user fees and charges, such as operating a swimming pool. The fact that the government will charge user fees to recover its costs aligns with the characteristics of an enterprise fund. Also, the fact that senior citizens and children under three years of age receive a discount does not affect the operational nature of the fund. Therefore, an enterprise fund is the appropriate choice to use for this purpose.

A Municipal Government Decides to Construct and Operate a Public