Internal Service and Enterprise Funds Are Both Proprietary Funds

Multiple Choice

Internal service and enterprise funds are both proprietary funds. Which of the following statements is correct?

A) They both use the economic resource focus and accrual accounting
B) Enterprise funds are used to report on activities that provide goods and services to other funds, departments who are charged on a cost-reimbursement basis.
C) Enterprise funds are appropriate when the predominant user of goods and services is the government.
D) Depreciation is not recorded in proprietary funds