1. The city of Pittsburgh has a sewer treatment plant that provides services to the public for a fee and is intended to be a self-supporting activity. What type of fund would be most appropriate to account for this?

• Permanent Fund 
• Agency Fund 
• Enterprise Fund 
• Internal Service Fund 

2. Which of the following statements is always true? 

• Depreciation is acceptable in governmental funds if a long-term asset is constructed rather than purchased.
• Financial statements for at least one governmental fund will always be prepared. 
• The Statement of Cash Flows is required for the Government Wide Financial Statements. 
• The revenues recorded by a Tax Agency Fund are included in the Government Wide Financial Statements.