Budgets for funds that are held for other governmental units.Select one:a.enterprise fundb.pension fundc.agency fundd.general fund

Break Down the Problem

To solve this question, we need to identify which type of fund is specifically used for holding budgets for other governmental units.

Relevant Concepts

1. Enterprise Fund: This is typically used for services provided to the public on a user charge basis. It operates similarly to a private business.
2. Pension Fund: This fund is designed to manage the retirement savings of employees and typically does not hold budgets for other governmental units.
3. Agency Fund: This fund is specifically designed to hold assets for other entities, making it a suitable contender for managing budgets for other governmental units.
4. General Fund: This is the primary operating fund for a government, covering a wide array of functions, but it does not specifically hold funds for other governmental units.

Analysis and Detail

• The Agency Fund is characterized by holding funds that belong to other entities, making it fundamentally different from the other funds listed. It is intended for situations where resources are held in a custodial capacity.
• In contrast, an Enterprise Fund and a General Fund are more about operational budgets, and a Pension Fund is specifically for employee retirement benefits.

Verify and Summarize

Upon reviewing the definitions and functions of each type of fund, it is clear that the Agency Fund is the correct choice for budgets held for other governmental units.

Final Answer

c. agency fund