1) In a recent general election, the city of Perrier citizens approved plans for the city to build a public swimming pool. The city plans to charge fees to swimmers to cover the cost of building and operating the pool and to generate resources to repair and replace equipment when needed. In what fund type should the city report its new swimming pool activities?

A) The General Fund, Because the pool was approved by the citizens

B) In an Enterprise Fund, because a fee will be charged to users

C) In a Capital Projects Fund, because fees will cover the cost of building the pool

D) In an Internal Service Fund because fees will be generated to repair and replace equipment as needed

2) Both internal service funds and enterprise funds use flexible budgets to control their activities but dont incorporate these budgets into their accounts because:

A) Both fund types have a monolopy on the services they provide

B) Encumbrance Accounting is not a good source of control

C) Flexible budgets change based on volume and are difficult to record in the accounts

D) Both fund types use marketplace controls instead