[jessanqi]

I’m always get confused between “special revenue fund” and “enterprise fund”. both of them are benefit the the general public. can someone please kindly extinguish these for me?

Thank you soso much!!!

Airport: To account for all airport revenues, expenditures and reimbursements to the general fund for airport costs. $900,000
Equipment used for supplying water to Lely’s residents $100,000
Receivables for completed sidewalks to be paid for in installments by affected property owners $950,000
Cash received from federal government dedicated to highway maintenance, which must be accounted for in a separate fund $995,000

How much should be accounted for in a special revenue fund or funds?

A. $100,000
B. $900,000
C. $1,895,000
D. $2,045,000

Explanation
The correct answer is C. The purpose of a special revenue fund is to account for earmarked revenue as opposed to the general revenues that are accounted for in the general fund. An example of a special revenue fund is airport revenues, expenditures and reimbursements to the general fund for airport costs, and cash received from federal government dedicated to highwaymaintenance, which is accounted for in a separate fund (special revenue fund). The total amount that should be accounted for in a special revenue fund is $1,895,000 ($900,000 + $995,000).