Exam 9: Business-Type Activities

A proprietary fund of a governmental entity has donor-restricted assets on its balance sheet.Which of the following best describes where and how those assets will generally be displayed?

In both the fund statements and the government-wide statements, business-type activities and internal service funds are on a full accrual basis, and their measurement focus is on all economic resources.

Governments generally do not have to get formal legislative approval for enterprise fund budgets or incorporate them into their accounting systems.

GASB Statement No.34 mandates that governments report their cash flows from operations using the indirect method.

When a governmental enterprise fund has restricted assets on its balance sheet, which of the following is a true statement?

Which of the following is not a proprietary fund?

Which of the following entities is required to use the direct method to report its cash flows?

In accounting for closure and postclosure landfill costs in an enterprise fund, a government does not necessarily have to "fund" the costs during the landfill's useful life; it merely has to report both an expense and a liability for them.

The appropriate measurement focus for the business-type activities of the City of Rockford is

Any internal service fund balances that are not eliminated in the consolidation process should generally be presented on the government-wide financial statements

Which of the following is a valid argument for separate accounting principles for proprietary activities?

Governments are required to prepare a statement of cash flows for proprietary funds, but not for governmental funds.

The operating statement required as one of the three basic financial statements for proprietary funds is called the statement of revenues, expenditures, and changes in fund net assets.

The revenues of an internal service fund are the expenditures and expenses of other funds of that government.

Which of the following is NOT a budget typically prepared for an activity accounted for in a proprietary fund?

The City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Service Fund.At the date of issue, the appropriate entry in the Internal Service Fund is a $ 2 million debit to cash and a $2 million credit to

In which of the following circumstances must an enterprise fund be used to account for the activity?

A Statement of Revenues, Expenses, and Changes in Fund Net Assets should include which of the following in addition to operating revenues and operating expenses and ending Net Assets

Washington County has designated the General Fund as the single fund to account for its self-insurance activities.What is the maximum amount that can be charged to expenditure in the General Fund related to the self-insurance activities?

Which of the following is a valid reason for governmental entities to engage in business-type activities?