Which of the following fund types does not report the payment of bond principal as an expenditure? a. Special revenue fund b. Enterprise fund c. Debt service fund d. General fund
QUESTION 4
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Which of the following fund types does not report the payment of bond principal as an expenditure?
a. Special revenue fund
b. Enterprise fund
c. Debt service fund
d. General fund
Special Revenue fund - These are the funds which is created for the specific purpose such as construction of roads, construction of building, the fund can be used for that specific purpose only and if any amount spent from special revenue fund that can be treated as an expenditure immediately.
Enterprise Fund- These are the funds which is created by government and used for self supporting fund which is utilized for sells goods and services to the general public for a consideration. for example Government provides electricity to public in exchange for consideration.
As and when the amount spent from enterprises fund the same can be reported as an expenditure.
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