What kinds of funds are revolving funds and are used for programs of a business-type operation, usually with the public?

• A. General Funds
• B. Public Enterprise Funds
• C. Special Funds
• D. Revolving Funds

Answer: (B)

Public Enterprise Funds are used for activities that operate like a private business and charge external customers for the service. These funds are designed to be self-sustaining through user fees, so revenue from customers cycles back into the operation to cover operating costs and fund future needs. That fits the description of a revolving fund supporting a business-type program that the public can access. General Funds cover broad government operations funded by taxes and aren’t run on a user-fee basis; Special Funds are for restricted purposes; Revolving Funds is not a separate fund category in itself. So the public enterprise fund best matches a program run like a business with the public.