What is the purpose of enterprise funds
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Chapter 6: Account Classification Descriptions — Fund ClassificationsA fund is a separate fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, or changes therein. Current fund classifications are presented below. Each classification is presented by a code number followed by a description. Show
Governmental Fund Types
Proprietary Fund Types
Fiduciary Fund Types
Top What are the purposes of enterprise funds and internal service funds?The basic difference between them derives from who the primary customer is. Enterprise funds provide goods and services to customers outside the reporting entity; internal service funds provide goods and services to internal customers.
What is an example of enterprise fund?Examples of enterprise funds include municipal utilities such as power, water, and sewer. Fees collected from enterprises should cover the cost of the enterprise. If fees greatly exceed the amount that it costs to operate the enterprise, municipal officials should leverage the fees to cover the costs of the enterprise.
Why do governments utilize enterprise funds?Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed ...
What are enterprise funds used for quizlet?An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges. Proprietary Funds use the accrual basis of accounting. Enterprise funds are reported in the fund-basis statements only.
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