Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) Current financial resources. 
B) Economic resources. 
C) Both (a)and (b). 
D) None of the above. 
A) Current financial resources. 
B) Economic resources. 
C) Both (a)and (b). 
D) None of the above.

Question 3

Over the long run, internal service funds are intended to generate sufficient revenues to cover the

Accepted Answer

A) Full costs of providing services. 
B) Full costs of providing services and earn a profit. 
C) Current operating costs of providing services. 
D) Current operating costs of providing services and earn an operating profit. 
A) Full costs of providing services. 
B) Full costs of providing services and earn a profit. 
C) Current operating costs of providing services. 
D) Current operating costs of providing services and earn an operating profit.

Question 4

Cougar 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

Accepted Answer

A) Bonds payable. 
B) Capital contribution (revenues). 
C) Capital contributed (revenues)AND show $2 million as an addition to the schedule of changes in long-term obligations. 
D) No entry in the internal service fund.Show $2 million as an addition to the schedule of changes in long-term obligations. 
A) Bonds payable. 
B) Capital contribution (revenues). 
C) Capital contributed (revenues)AND show $2 million as an addition to the schedule of changes in long-term obligations. 
D) No entry in the internal service fund.Show $2 million as an addition to the schedule of changes in long-term obligations.

Question 5

The appropriate entry in the internal service fund is a debit to cash for $500,000 and a credit for $500,000 to

Accepted Answer

A) Due to general fund. 
B) Nonreciprocal transfer-in. 
C) Capital contribution (Revenues). 
D) Investment provided by the general fund. 
A) Due to general fund. 
B) Nonreciprocal transfer-in. 
C) Capital contribution (Revenues). 
D) Investment provided by the general fund.

Question 6

The amounts reported in proprietary fund statements are generally the same as those reported in the government-wide statements because both sets of statements are on a full accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 7

The proprietary fund operating statement includes ALL changes in net position including capital contributions.

Accepted Answer

A) True 
 B)False

Question 8

The amount the city's self-insurance fund can recognize as revenue is

Accepted Answer

A) $620,000 
B) $600,000. 
C) $540,000. 
D) $500,000. 
A) $620,000 
B) $600,000. 
C) $540,000. 
D) $500,000.

Question 9

Governments may elect to account for their landfill activities in either a governmental or an enterprise fund.Explain the differences that would result if one government elected to account for its landfill activities in its general fund and another government elected to account for its landfill activities in an enterprise fund.

Accepted Answer

Landfill expenditures/expenses that may

Question 10

A government operates a landfill.In the Landfill Enterprise Fund financial statements, which of the following would be reported as a restricted asset?

Accepted Answer

A) Cash received from the sale of bonds that must, based on the debt covenant, be spent only on building a new landfill runoff treatment plant. 
B) Cash that management has voted to use only for landfill expansion. 
C) Cash received from the general fund that will be used only to expand the landfill. 
D) None of the above. Use the following information to answer questions #27 and #28.
During the year Endor City's self-insurance internal service fund billed the general
Fund $600,000 for "premiums," of which $60,000 was for catastrophic losses and the balance was the premium computed on an actuarially determined basis.During the year the city incurred $500,000 in claims losses.The total amount transferred to the self-insurance fund by the general fund was $620,000. 
A) Cash received from the sale of bonds that must, based on the debt covenant, be spent only on building a new landfill runoff treatment plant. 
B) Cash that management has voted to use only for landfill expansion. 
C) Cash received from the general fund that will be used only to expand the landfill. 
D) None of the above. Use the following information to answer questions #27 and #28.
During the year Endor City's self-insurance internal service fund billed the general
Fund $600,000 for "premiums," of which $60,000 was for catastrophic losses and the balance was the premium computed on an actuarially determined basis.During the year the city incurred $500,000 in claims losses.The total amount transferred to the self-insurance fund by the general fund was $620,000.

Question 11

An electric utility reports both restricted assets and restricted net position, but the amounts are different from each other.What could account for this difference?

Accepted Answer

The difference between reported restrict

Question 12

The costs of cleaning up toxic substances seeping out from an abandoned county dump into the town water supply may be accounted for in either a governmental fund or an enterprise fund.

Accepted Answer

A) True 
 B)False

Question 13

Internal service funds should be consolidated with other governmental funds in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 14

The financial statements of a proprietary fund are prepared using the

Accepted Answer

The answer of The financial statements of a proprietary fund...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) Appropriation budget. 
B) Cash budget. 
C) Capital budget. 
D) Flexible budget. 
A) Appropriation budget. 
B) Cash budget. 
C) Capital budget. 
D) Flexible budget.

Question 17

The appropriate entry in the general fund to account for this transfer is a credit to cash for $500,000 and a debit for $500,000 to

Accepted Answer

A) Due from internal service fund. 
B) Nonreciprocal transfer-out. 
C) Expenditures. 
D) Investment in internal service fund. 
A) Due from internal service fund. 
B) Nonreciprocal transfer-out. 
C) Expenditures. 
D) Investment in internal service fund.

Question 18

How should a government usually report the activities of an internal service fund in the government-wide financial statements?

Accepted Answer

Unless an internal service fund provides

Question 19

"Cash flows from capital and related financing activities" include which of the following as cash outflows

Accepted Answer

A) Grants to other governments for operating activities. 
B) Grants to other governments for capital asset acquisitions. 
C) Payments for services performed by other funds. 
D) Purchases of capital assets. 
A) Grants to other governments for operating activities. 
B) Grants to other governments for capital asset acquisitions. 
C) Payments for services performed by other funds. 
D) Purchases of capital assets.

Question 20

Governments may choose whether to account for internal service fund activities on an accrual basis or a modified accrual basis.

Accepted Answer

A) True 
 B)False

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

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

Over the long run, internal service funds are intended to generate sufficient revenues to cover the

Cougar 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

The appropriate entry in the internal service fund is a debit to cash for $500,000 and a credit for $500,000 to

The amounts reported in proprietary fund statements are generally the same as those reported in the government-wide statements because both sets of statements are on a full accrual basis of accounting.

The proprietary fund operating statement includes ALL changes in net position including capital contributions.

The amount the city's self-insurance fund can recognize as revenue is

A government operates a landfill.In the Landfill Enterprise Fund financial statements, which of the following would be reported as a restricted asset?

An electric utility reports both restricted assets and restricted net position, but the amounts are different from each other.What could account for this difference?

The costs of cleaning up toxic substances seeping out from an abandoned county dump into the town water supply may be accounted for in either a governmental fund or an enterprise fund.

Internal service funds should be consolidated with other governmental funds in the government-wide statements.

The financial statements of a proprietary fund are prepared using the

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

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

The appropriate entry in the general fund to account for this transfer is a credit to cash for $500,000 and a debit for $500,000 to

How should a government usually report the activities of an internal service fund in the government-wide financial statements?

"Cash flows from capital and related financing activities" include which of the following as cash outflows

Governments may choose whether to account for internal service fund activities on an accrual basis or a modified accrual basis.

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Pensions and Other Fiduciary Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Notforprofit Organizations

Federal Government Accounting

Filters

Exam 9: Business-Type Activities

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

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

Over the long run, internal service funds are intended to generate sufficient revenues to cover the

Cougar 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

The appropriate entry in the internal service fund is a debit to cash for $500,000 and a credit for $500,000 to

The amounts reported in proprietary fund statements are generally the same as those reported in the government-wide statements because both sets of statements are on a full accrual basis of accounting.

The proprietary fund operating statement includes ALL changes in net position including capital contributions.

The amount the city's self-insurance fund can recognize as revenue is

A government operates a landfill.In the Landfill Enterprise Fund financial statements, which of the following would be reported as a restricted asset?

An electric utility reports both restricted assets and restricted net position, but the amounts are different from each other.What could account for this difference?

The costs of cleaning up toxic substances seeping out from an abandoned county dump into the town water supply may be accounted for in either a governmental fund or an enterprise fund.

Internal service funds should be consolidated with other governmental funds in the government-wide statements.

The financial statements of a proprietary fund are prepared using the

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

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

The appropriate entry in the general fund to account for this transfer is a credit to cash for $500,000 and a debit for $500,000 to

How should a government usually report the activities of an internal service fund in the government-wide financial statements?

"Cash flows from capital and related financing activities" include which of the following as cash outflows

Governments may choose whether to account for internal service fund activities on an accrual basis or a modified accrual basis.

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Pensions and Other Fiduciary Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Notforprofit Organizations

Federal Government Accounting

Filters