What does enterprise fund mean on the CPA exam?
Enterprise fund. A proprietary fund used where a government charges outside users for goods or services, run on the full accrual basis like a business.
Defined against GASB 34.
Which CPA exam sections use enterprise fund?
Enterprise fund appears in the BAR section of the CPA exam.
Other terms defined against GASB 34
- capital assets: In GOVERNMENTAL reporting, long-lived assets such as land, buildings and infrastructure.
- full accrual: Recognizing revenue when earned and expense when incurred, and reporting every asset and liability including long-term ones.
- governmental activities: The part of a government's operations financed mainly by taxes rather than by fees, reported on the government-wide statements on the full accrual basis.
- governmental funds: The funds that account for tax-supported activity, reported on the modified accrual basis with a current financial resources focus.
- internal service fund: A proprietary fund that supplies goods or services to other parts of the same government on a cost-reimbursement basis, such as a motor pool.
- management's discussion and analysis: A narrative overview management provides ahead of the financial statements.
- modified accrual: The basis for governmental fund statements: revenue when measurable and available, expenditure when the liability is incurred.
- required supplementary information: Schedules a government must present outside the basic statements, such as budgetary comparisons and pension trend data.
Related terms
- restricted fund balance: Fund balance constrained to a purpose by an external party, a constitutional provision, or enabling legislation.
- committed fund balance: Fund balance constrained to a purpose by formal action of the government's own highest level of decision-making authority, and removable only by the same kind of action.
- General Data Protection Regulation: The European Union regulation governing processing of personal data.
- average total assets: The average of opening and closing total assets, used wherever a period flow like sales is compared to a balance.
- accounts receivable: Amounts customers owe for goods or services already delivered.
- contract asset: The right to consideration for goods or services already transferred, where the right still depends on something other than the passage of time.