What is the purpose of an enterprise fund?

An enterprise fund identifies the total direct and indirect costs to provide the service and the sources and amounts of revenues that support the service for which a fee is charged in exchange for service.

What is an example of enterprise fund?

Some examples of enterprise funds are activities such as the food service program, the bookstore operation, the athletic stadium, or the community swimming pool. Internal Service Funds. Otherwise, the activity should be reported as an enterprise fund.

What is an enterprise fund?

Enterprise Fund means a fund used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing authority is that the costs of providing goods and services to the general public on a continuing basis be financed or recovered primarily …

Is enterprise fund a government fund?

An enterprise fund is a self-supporting government fund that sells goods and services to the public for a fee.

Under what circumstances is an enterprise fund required to be used?

Required to be used in three circumstances: when an activity is financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity; when laws or regulations require that the activity’s costs of providing services be recovered with fees and charges; or when the activity’s …

What is a special revenue fund?

Special revenue funds—to account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, or other governments or for major capital projects) that are legally restricted to expenditure for specified purposes.

What are the four types of fiduciary funds?

The Statement describes four types of fiduciary funds:

• Pension (and other employee benefit) trust funds,
• Investment trust funds,
• Private-purpose trust funds, and.
• Custodial funds.

What is a permanent fund government?

A permanent fund is a fund where the principal fund may not be used and only earnings on the fund are used for the benefit of the government or its citizens.

What is the purpose of Special revenue fund?

A special revenue fund is an account established by a government to collect money that must be used for a specific project. Special revenue funds provide an extra level of accountability and transparency to taxpayers that their tax dollars will go toward an intended purpose.

What is the same as revenue?

Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Income or net income is a company’s total earnings or profit. Both revenue and net income are useful in determining the financial strength of a company, but they are not interchangeable.

What are the characteristics of fiduciary funds?

Fiduciary Funds are used in governmental accounting in order to account for assets that are held in trust for others. In other words, these are the funds that are held by the government as a trustee. They are held on behalf of others, and therefore, they cannot be used to fund the government’s own expenses.

What is the difference between a permanent fund and a private purpose trust fund?

What is the distinction between Private Purpose Trust Funds and Permanent Funds? Private Purpose = trust agreements where principal or income benefits individuals, private orgs, or other govs. Permanent Funds use the modified accrual basis of accounting while Private Purpose Trusts use the accrual basis.

What are some examples of enterprise funds?

Some examples of enterprise funds are activities such as the bookstore operations, the athletic stadium and the community swimming pool. All public entity risk pools (Self-Insurance Consortiums) are required to be accounting for as enterprise funds.

What is governmental enterprise fund?

enterprise fund. in governmental accounting, fund that provides goods or services to the public for a fee that makes the entity self-supporting.It basically follows gaap as does a commercial enterprise.

What is a municipal enterprise fund?

An enterprise fund establishes a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services.

What is enterprise accounting?

enterprise accounting. noun. accounts prepared for the whole of a business, not merely for a department or other subdivisions.