1. Under which of the following circumstances must governments use an Enterprise Fund? Select one:

A. The activity issues debt that is secured solely by a pledge of the net revenues from fees and charges of the activity.

B. Laws or regulations require the activity to recover its costs of providing services including capital costs (such as depreciation or debt service) with user fees and charges, rather than with taxes or similar nonexchange revenues.

C. The second criterion is applicable here.

D. The activity establishes user fees and charges based on pricing policies designed to recover all costs, including capital costs (such as depreciation or debt service)

2. . A state's Investment Trust Fund's statement of changes in fiduciary net position likely will have include a deduction for distributions to pool or fund participants.

Select one: True or False