True or False: General obligation debt should never be reported as debt of an individual enterprise fund.

General obligation debt can indeed be reported as debt within an individual enterprise fund in certain situations. Enterprise funds are used by government entities to account for operations that are financed and operated similarly to private businesses. These funds generate their own revenue and are typically self-sustaining.

When a government issues general obligation debt to fund projects that benefit or serve a specific enterprise fund, such as a water utility or public transport system, it is appropriate to report that debt within the enterprise fund's financial statements. The underlying rationale is that the enterprise fund will benefit from the financed project and potentially use the revenue generated to repay the associated debt.

This reporting aligns with the principles of accounting where the financial activities and obligations tied to a particular service or function are reflected accurately. Therefore, the statement suggesting that general obligation debt should never be reported as debt of an individual enterprise fund is false. This flexibility allows for a more accurate representation of the financial position and obligations of the enterprise fund.