Which of the following statements would correctly describe what appears on an enterprise fund balance sheet?

• A. Fund Balance: Yes; Net Position—Unrestricted: Yes
• B. Fund Balance: Yes; Net Position—Unrestricted: No
• C. Fund Balance: No; Net Position—Unrestricted: Yes
• D. Fund Balance: No; Net Position—Unrestricted: Yes

Answer: (D)

Enterprise funds use accrual accounting and present a balance sheet as a Statement of Net Position, not as a Fund Balance. Fund Balance is a concept from governmental funds, so it does not appear on the enterprise fund balance sheet. Instead, the balance sheet shows Net Position, which is reported with components such as unrestricted net position. The unrestricted portion represents the resources not restricted by external or contractual constraints. So the correct description is that there is no Fund Balance on an enterprise fund balance sheet, but there is Net Position—Unrestricted.