Question

The year-end balance of amounts due from an enterprise fund to the general fund is reported

	A.	only on the government-wide statement of net position.
	B.	on the government-wide statement of net position and on the balance sheet of governmental funds.
	C.	on none of the financial statements.
	D.	only on the balance sheet of governmental funds.

Answer 1

A government's general fund is a pool of cash raised from taxes and can be spent wherever the government needs it. An enterprise fund is more specific. Enterprise fund money can only be spent on a specific purpose, such as parks and recreation. Most of the funding comes from fees related to the fund's mission. Let's say enterprise fund owe amounts to general fund and this year end balance reporting will be:

OptionA. only on the government-wide statement of net position because this transaction is an internal affair between government general fund and enterprise fund. Net position will show the net transaction.