A City Government Has Decided to Build and Operate a Convention

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The Answer is In determining whether to account for an activity as an enterprise fund,the government should consider whether the activity has the basic characteristics of an enterprise activity. Among these are: (1)The existence of fee-based services and (2)the principal customers are external to the government. It is also important to consider the terms of any financing. If the activity issues revenue bonds or other debt backed by the income earned by the activity,it should be accounted for in an enterprise fund. Finally,the government should consider the whether it is the intent of the government (either by law or policy)that the activity be self-sustaining. If so,it should most appropriately be accounted for in an enterprise fund.

A City Government Has Decided to Build and Operate a Convention

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A City Government Has Decided to Build and Operate a Convention

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified