11.Enterprise funds are reported in the fund-basis statements only.
12.Internal Service funds are reported in the fund-basis statements only.
13.Activities that produce goods or services to be provided to other departments or other governmental units on a cost-reimbursement basis are accounted for by enterprise funds.
14.The excess of assets over liabilities of proprietary funds is termed “Net Position.”
15.Enterprise funds use the economic resources measurement focus and accrual basis of accounting
16.An enterprise fund is required if there is a legal requirement that the cost of providing services for an activity, including capital costs, be recovered through fees or charges.
17.An internal service fund is required whenever an activity is funded by fees or charges from other government departments.
18.Unlike enterprise funds, it is frequently desirable for internal service funds to operate at a profit.
19.The most numerous and important enterprise services rendered by local governments are public utilities.
20.The term “proprietary funds” includes enterprise and internal service funds.