Understanding Internal Service Funds and Enterprise Funds
Explanation:
Internal Service Funds: An internal service fund is a type of fund used by municipal governments to account for services provided to other departments or agencies within the government. Examples of these services include purchasing services, printing services, repair garages, janitorial services, and risk management activities. These funds are accounted for separately because they operate like a business within the government, charging fees to the departments or agencies they serve.
Enterprise Funds: On the other hand, enterprise funds are used to account for government activities that provide services to the public and charge fees for those services. Examples of activities that would be recorded in an enterprise fund include utilities, lotteries, and golf courses.
Municipal Sports Stadiums: Municipal sports stadiums can fall under both internal service funds and enterprise funds, depending on the circumstances. If the stadium provides services to other departments or agencies within the government, it would be recorded in an internal service fund. If the stadium provides services to the public and charges fees for those services, it would be recorded in an enterprise fund.
Therefore, the correct answer is D) All of the above are commonly reported as enterprise funds.