Question 1

Proprietary funds utilize what basis of accounting?

Accepted Answer

A)  Modified accrual. 
B)  Accrual. 
C)  Cash. 
D)  Budgetary. 
A)  Modified accrual. 
B)  Accrual. 
C)  Cash. 
D)  Budgetary.

Question 2

Capital assets of internal service funds should be reported:

Accepted Answer

A)  In the internal service funds only. 
B)  In the government-wide statements only. 
C)  In both the internal service funds and the government-wide statements. 
D)  None of the above, they are not reported 
A)  In the internal service funds only. 
B)  In the government-wide statements only. 
C)  In both the internal service funds and the government-wide statements. 
D)  None of the above, they are not reported

Question 3

The Village of Lake George decided to establish an internal service fund to account for the operations of a Print Shop. The Print Shop is to begin operations on July 1,2014 the first day of the City's fiscal year. During the fiscal year ended June 30,2015 the following transactions occurred:
(a)The General Fund made a permanent contribution of $400,000 and a long-term advance of $800,000 to the Print Shop Fund. The advance is to be repaid by the Print Shop Fund in four equal annual installments; the first installment is due 6/30/2015.The advance is non-interest bearing and is considered issued for the purchases of equipment.
(b)During the year equipment was purchased (for cash)in the amount of $ 890,000.
(c)During the year,printing supplies costing $120,000 were purchased; all but $30,000 was paid in cash.
(d)Billings to departments during the year totaled $ 400,000 at selling price. All but $50,000 was received in cash.
(e)The cost of supplies used during the year totaled $73,000;
(f)Salaries and wages were $19,000 and utilities were $3,000 (all paid in cash); and
(g)Depreciation was charged on equipment,$80,000.
(h)The first installment of the advance was repaid.
Required:
1.Prepare journal entries in the general journal of the Village of Lake George Print Shop Fund to reflect the above transactions.
2.Prepare closing entries for the year.
3.Prepare,in good form,the equity section of the Statement of Net position for the Village of Lake George Print Shop Fund as of June 30,2015.

Accepted Answer

The answer of The Village of Lake George decided to...

Question 4

GASB requires the indirect method to determine cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 5

Long term debt serviced from proprietary funds is reported only in the government-wide Statement of Net Position.

Accepted Answer

A) True 
 B)False

Question 6

Long term liabilities of an enterprise fund are reported in the proprietary fund statement and in government-wide statements.

Accepted Answer

A) True 
 B)False

Question 7

The Proprietary Fund Statement of Net Position may choose whether to classify assets and liabilities between current and long-term.

Accepted Answer

A) True 
 B)False

Question 8

Budgetary comparison schedules are not required for proprietary funds.

Accepted Answer

A) True 
 B)False

Question 9

Which financial statements are required for a proprietary fund?

Accepted Answer

A)  Income statement, Statement of Net Position and Statement of Cash Flows 
B)  Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows 
C)  Statement of Revenues, Expenses and Changes in Fund Balance and Statement of Net Position, and Statement of Cash Flows 
D)  Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Net Position 
A)  Income statement, Statement of Net Position and Statement of Cash Flows 
B)  Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows 
C)  Statement of Revenues, Expenses and Changes in Fund Balance and Statement of Net Position, and Statement of Cash Flows 
D)  Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Net Position

Question 10

Describe the differences in cash flow statements required by GASB standards when compared with cash flow statements required by FASB standards.

Accepted Answer

•GASB requires four categories: operatin

Question 11

Enterprise funds are used to account for activities similar to those engaged in profit-seeking businesses.

Accepted Answer

A) True 
 B)False

Question 12

Proprietary funds use the modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 13

An Enterprise Fund has an indefinite life.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not true regarding enterprise funds?

Accepted Answer

A)  Enterprise funds record long-term debt directly in the fund accounts. 
B)  Enterprise funds record capital assets directly in the fund accounts. 
C)  Enterprise funds report a Statement of Cash Flows. 
D)  The difference between assets and liabilities of enterprise funds is termed "Fund Balance." 
A)  Enterprise funds record long-term debt directly in the fund accounts. 
B)  Enterprise funds record capital assets directly in the fund accounts. 
C)  Enterprise funds report a Statement of Cash Flows. 
D)  The difference between assets and liabilities of enterprise funds is termed "Fund Balance."

Question 15

Which of the following is true of the Statement of Net Position for proprietary funds?

Accepted Answer

A)  A classified format is used in which current assets, noncurrent assets, current liabilities, and noncurrent liabilities are presented separately. 
B)  Separate disclosure is required for major enterprise funds and a total for all non-major enterprise funds 
C)  Both A and B are correct. 
D)  Neither A nor B are correct. 
A)  A classified format is used in which current assets, noncurrent assets, current liabilities, and noncurrent liabilities are presented separately. 
B)  Separate disclosure is required for major enterprise funds and a total for all non-major enterprise funds 
C)  Both A and B are correct. 
D)  Neither A nor B are correct.

Question 16

The four categories on the Statement of Cash Flows for a proprietary fund are operating,non-capital financing activities,capital and related financing activities,and investing activities.

Accepted Answer

A) True 
 B)False

Question 17

Long-term liabilities of an enterprise fund should be reported in the:

Accepted Answer

The answer of Long-term liabilities of an enterprise fund should...

Question 18

Cash flow statements of proprietary funds must use the direct method for recording cash flows from operations.

Accepted Answer

A) True 
 B)False

Question 19

Financial statements for proprietary funds are prepared using the economic resources measurement focus.

Accepted Answer

A) True 
 B)False

Question 20

Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as:

Accepted Answer

A)  Transfers from the enterprise fund to a capital projects fund. 
B)  Operating revenues to the enterprise fund. 
C)  Unearned revenue to the enterprise fund. 
D)  Capital contributions to the enterprise fund. 
A)  Transfers from the enterprise fund to a capital projects fund. 
B)  Operating revenues to the enterprise fund. 
C)  Unearned revenue to the enterprise fund. 
D)  Capital contributions to the enterprise fund.

Proprietary funds utilize what basis of accounting?

Capital assets of internal service funds should be reported:

GASB requires the indirect method to determine cash flows from operating activities.

Long term debt serviced from proprietary funds is reported only in the government-wide Statement of Net Position.

Long term liabilities of an enterprise fund are reported in the proprietary fund statement and in government-wide statements.

The Proprietary Fund Statement of Net Position may choose whether to classify assets and liabilities between current and long-term.

Budgetary comparison schedules are not required for proprietary funds.

Which financial statements are required for a proprietary fund?

Describe the differences in cash flow statements required by GASB standards when compared with cash flow statements required by FASB standards.

Enterprise funds are used to account for activities similar to those engaged in profit-seeking businesses.

Proprietary funds use the modified accrual basis of accounting.

An Enterprise Fund has an indefinite life.

Which of the following is not true regarding enterprise funds?

Which of the following is true of the Statement of Net Position for proprietary funds?

The four categories on the Statement of Cash Flows for a proprietary fund are operating,non-capital financing activities,capital and related financing activities,and investing activities.

Long-term liabilities of an enterprise fund should be reported in the:

Cash flow statements of proprietary funds must use the direct method for recording cash flows from operations.

Financial statements for proprietary funds are prepared using the economic resources measurement focus.

Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Fiduciary Funds, Inter-fund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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Exam 6: Proprietary Funds

Proprietary funds utilize what basis of accounting?

Capital assets of internal service funds should be reported:

GASB requires the indirect method to determine cash flows from operating activities.

Long term debt serviced from proprietary funds is reported only in the government-wide Statement of Net Position.

Long term liabilities of an enterprise fund are reported in the proprietary fund statement and in government-wide statements.

The Proprietary Fund Statement of Net Position may choose whether to classify assets and liabilities between current and long-term.

Budgetary comparison schedules are not required for proprietary funds.

Which financial statements are required for a proprietary fund?

Describe the differences in cash flow statements required by GASB standards when compared with cash flow statements required by FASB standards.

Enterprise funds are used to account for activities similar to those engaged in profit-seeking businesses.

Proprietary funds use the modified accrual basis of accounting.

An Enterprise Fund has an indefinite life.

Which of the following is not true regarding enterprise funds?

Which of the following is true of the Statement of Net Position for proprietary funds?

The four categories on the Statement of Cash Flows for a proprietary fund are operating,non-capital financing activities,capital and related financing activities,and investing activities.

Long-term liabilities of an enterprise fund should be reported in the:

Cash flow statements of proprietary funds must use the direct method for recording cash flows from operations.

Financial statements for proprietary funds are prepared using the economic resources measurement focus.

Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Fiduciary Funds, Inter-fund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters