QUESTION 2 Which of the following is CORRECT regarding Enterprise Funds? Choose
ID: 2539785 • Letter: Q
Question
QUESTION 2 Which of the following is CORRECT regarding Enterprise Funds? Choose all that apply A. User charges must be assessed if an Enterprise Fund is to be used for accounting purposes. Many enterprise funds use flexible budgets to help control operations. O C. Most enterprise funds use encumbrances to control purchases. Enterprise funds may also sell goods and services to the general government and its agencies. OE. Enterprise funds report capital assets and the related depreciation expense on the fund financial statements O F. An enterprise fund must be used if user charges are assessed to the public.Explanation / Answer
Following are correct regarding Enterprise Funds:
A. User charges must be assessed if an enterprise fund is used for accounting purposes. B. Many enterprises funds use flexible budgets to help control operations. D. Enterprises fund may also sell goods and services to the general government and its agencies. E. Enterprise fund report capital assets and the related depreciation expense. F. An enterprise fund must be used if user charges are assessed to public.