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MMLU / Which of the following statements is the most significant characteristic in…

Problem

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question

Which of the following statements is the most significant characteristic in determining the classification of an enterprise fund?

choices

  1. The predominant customer is the primary government.
  2. The pricing policies of the activity establish fees and charges designed to recover its cost.
  3. The activity is financed by debt that is secured partially by a pledge of the net revenues from fees and charges of the activity.
  4. Laws or regulations require that the activity’s costs of providing services including capital costs be recovered with taxes or similar revenues.

subject

professional_accounting

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