The city of Cherokee Hills is adjacent to a freeway leading to anearby metropoli

Question

The city of Cherokee Hills is adjacent to a freeway leading to anearby metropolitan area na has grown rapidly from a small villageto a city of 75,000. Its population is expected to double every 10years in the foreseeable future. The city has owned and operatedthe local electricity generation and distribution system since itsinception many years ago and has never charged itself forelectricity consumption. The newly employed comptroller of CherokeeHills seeks your advice in this regard. What is your response?

Explanation / Answer

HeyJaneye, The newly appointed comptroller of C hillsis justly concerned . An enterprise fund is what is required inthis context. An enterprise fund is is required for anyGovernment operation that is open to the public and financed in part by usercharges. An enterprise fund is subject to thefollowing criteria : The activity generates net revenues thatprovide the sole security for the debts of the enterprise. Laws or regulations require recovering theactivity's costs ( including depreciation and dabt service ) through fees or charges. Fees and charges are set at prices intentedto recover costs including depreciation & debt service .

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.