Question 1

Long term debt serviced from proprietary funds is recorded in the Long Term Debt Account Group.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is false regarding proprietary fund accounting?

Accepted Answer

A)  The economic resources measurement focus and accrual accounting are used. 
B)  Capital assets are recorded in the accounts and depreciated over their useful lives. 
C)  The Statement of Net Position must be in a classified format, with current assets separated from noncurrent assets and current liabilities separated from noncurrent liabilities. 
D)  In the Statement of Net Position, the Net position is reported as either reserved or unreserved. 
A)  The economic resources measurement focus and accrual accounting are used. 
B)  Capital assets are recorded in the accounts and depreciated over their useful lives. 
C)  The Statement of Net Position must be in a classified format, with current assets separated from noncurrent assets and current liabilities separated from noncurrent liabilities. 
D)  In the Statement of Net Position, the Net position is reported as either reserved or unreserved.

Question 3

In the government-wide statements,Internal Service Funds are a(n)______ activity,whereas Enterprise Funds are typically a(n)______activity.

Accepted Answer

A)  business-type; governmental. 
B)  governmental; business-type. 
C)  restricted; unrestricted. 
D)  unrestricted; restricted. 
A)  business-type; governmental. 
B)  governmental; business-type. 
C)  restricted; unrestricted. 
D)  unrestricted; restricted.

Question 4

Under GASB Statement 34,enterprise funds must be used under which circumstances?

Accepted Answer

•When Debt is backed solely by fees and

Question 5

The Water Utility (an enterprise fund)has just sent out a purchase order to a vendor for some new equipment.Which of the following would be included in the journal entry to record this event?

Accepted Answer

A)  A credit to Accounts Payable. 
B)  A debit to Encumbrances. 
C)  A debit to Expenditures. 
D)  None of the above. 
A)  A credit to Accounts Payable. 
B)  A debit to Encumbrances. 
C)  A debit to Expenditures. 
D)  None of the above.

Question 6

An internal service fund provided services to a General Fund department. At the time of billing,the credit entry in the internal service fund would be:

Accepted Answer

A)  Other Financing Sources-Transfers In. 
B)  Operating Revenues-Charges for Services. 
C)  Other Financing Sources-Charges for Services. 
D)  Due from General Fund. 
A)  Other Financing Sources-Transfers In. 
B)  Operating Revenues-Charges for Services. 
C)  Other Financing Sources-Charges for Services. 
D)  Due from General Fund.

Question 7

Norton County operated a landfill,and accounted for it as an enterprise fund. The closure and post-closure care costs are estimated to be $20,000,000. It is estimated that the capacity of the landfill is 5 million tons of waste and that waste will be accepted for 10 years. During 2015,750,000 tons of waste was accepted by the landfill. The charge for closure and post-closure care costs for 2015 would be:

Accepted Answer

A)  $ 750,000. 
B)  $2,000,000. 
C)  $3,000,000. 
D)  Impossible to determine from the information given. 
A)  $ 750,000. 
B)  $2,000,000. 
C)  $3,000,000. 
D)  Impossible to determine from the information given.

Question 8

According to GASB 34,restricted Net Position does not include those that are the results of constraints imposed by creditors,grantors,contributors,or laws or regulations of other governments.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is correct with respect to Internal Service Funds?

Accepted Answer

A)  Internal service funds use modified accrual accounting and the current financial resources measurement focus 
B)  Net position is to be reported in two categories: assigned and unassigned 
C)  Internal service funds account for long-term debt but not capital assets 
D)  All of the above are false statements 
A)  Internal service funds use modified accrual accounting and the current financial resources measurement focus 
B)  Net position is to be reported in two categories: assigned and unassigned 
C)  Internal service funds account for long-term debt but not capital assets 
D)  All of the above are false statements

Question 10

Which of the following are best described as proprietary funds?
I.Internal Service funds
II.Pension funds
III.Enterprise funds

Accepted Answer

A)  I only. 
B)  I and II. 
C)  I and III. 
D)  I, II, and III. 
A)  I only. 
B)  I and II. 
C)  I and III. 
D)  I, II, and III.

Question 11

Unlike enterprise funds,it is frequently desirable for internal service funds to operate at a profit.

Accepted Answer

A) True 
 B)False

Question 12

What is the appropriate accounting for the signing of a contract to build a new water treatment facility by an Enterprise Fund?

Accepted Answer

A)  Debit Encumbrances. 
B)  Credit Budgetary Fund Balance - Reserve for encumbrances. 
C)  Both A & B. 
D)  No entry is required. 
A)  Debit Encumbrances. 
B)  Credit Budgetary Fund Balance - Reserve for encumbrances. 
C)  Both A & B. 
D)  No entry is required.

Question 13

An internal service fund provided services to a General Fund department. At the time of billing,the debit entry in the General Fund would be:

Accepted Answer

A)  Other Financing Sources-Transfers Out. 
B)  Expenditures. 
C)  Operating Revenues-Charges for Services. 
D)  Expenses. 
A)  Other Financing Sources-Transfers Out. 
B)  Expenditures. 
C)  Operating Revenues-Charges for Services. 
D)  Expenses.

Question 14

GASB requires that the reconciliation of income and cash flows from operations starts with operating income.

Accepted Answer

A) True 
 B)False

Question 15

In addition to a Statement of Net Position and Statement of Revenues,Expenses and Changes in Fund Net Position,which of the following statements is (are)required for proprietary funds?

Accepted Answer

A)  Statement of Cash Flows. 
B)  Budgetary Comparison Schedule. 
C)  Both A and B above 
D)  Neither A nor B above 
A)  Statement of Cash Flows. 
B)  Budgetary Comparison Schedule. 
C)  Both A and B above 
D)  Neither A nor B above

Question 16

Proprietary funds use the economic resources measurement focus and modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 17

Activities that produce goods or services to be provided to other departments or other governmental units on a cost-reimbursement basis are accounted for by enterprise funds.

Accepted Answer

A) True 
 B)False

Question 18

Which financial statements are required for proprietary funds?

Accepted Answer

A)  Statement of Net Position; Statement of Revenues, Expenses, and Changes in fund Net Position; Statement of cash flows. 
B)  Budgetary comparison schedule; Statement of revenues, expenditures, and changes in fund balance; Statement of Net Position. 
C)  Statement of Net Position; Statement of revenues, expenditures, and changes in fund balances; Statement of cash flows. 
D)  Statement of Net Position; Statement of Revenues, Expenses, and Changes in fund net position; 
A)  Statement of Net Position; Statement of Revenues, Expenses, and Changes in fund Net Position; Statement of cash flows. 
B)  Budgetary comparison schedule; Statement of revenues, expenditures, and changes in fund balance; Statement of Net Position. 
C)  Statement of Net Position; Statement of revenues, expenditures, and changes in fund balances; Statement of cash flows. 
D)  Statement of Net Position; Statement of Revenues, Expenses, and Changes in fund net position;

Question 19

Internal Service Funds account for activities that produce goods or services to be provided to outside customers on a cost reimbursement basis.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not an example of an Enterprise Fund?

Accepted Answer

A)  Electric and Water Utilities. 
B)  Public Libraries. 
C)  Sports Stadiums. 
D)  All of the above are commonly reported as enterprise funds. 
A)  Electric and Water Utilities. 
B)  Public Libraries. 
C)  Sports Stadiums. 
D)  All of the above are commonly reported as enterprise funds.

Long term debt serviced from proprietary funds is recorded in the Long Term Debt Account Group.

Which of the following is false regarding proprietary fund accounting?

In the government-wide statements,Internal Service Funds are a(n) activity,whereas Enterprise Funds are typically a(n)activity.

Under GASB Statement 34,enterprise funds must be used under which circumstances?

The Water Utility (an enterprise fund)has just sent out a purchase order to a vendor for some new equipment.Which of the following would be included in the journal entry to record this event?

An internal service fund provided services to a General Fund department. At the time of billing,the credit entry in the internal service fund would be:

According to GASB 34,restricted Net Position does not include those that are the results of constraints imposed by creditors,grantors,contributors,or laws or regulations of other governments.

Which of the following is correct with respect to Internal Service Funds?

Which of the following are best described as proprietary funds? I.Internal Service funds II.Pension funds III.Enterprise funds

Unlike enterprise funds,it is frequently desirable for internal service funds to operate at a profit.

What is the appropriate accounting for the signing of a contract to build a new water treatment facility by an Enterprise Fund?

An internal service fund provided services to a General Fund department. At the time of billing,the debit entry in the General Fund would be:

GASB requires that the reconciliation of income and cash flows from operations starts with operating income.

In addition to a Statement of Net Position and Statement of Revenues,Expenses and Changes in Fund Net Position,which of the following statements is (are)required for proprietary funds?

Proprietary funds use the economic resources measurement focus and modified accrual basis of accounting.

Activities that produce goods or services to be provided to other departments or other governmental units on a cost-reimbursement basis are accounted for by enterprise funds.

Which financial statements are required for proprietary funds?

Internal Service Funds account for activities that produce goods or services to be provided to outside customers on a cost reimbursement basis.

Which of the following is not an example of an Enterprise Fund?

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

Exam 6: Proprietary Funds

Long term debt serviced from proprietary funds is recorded in the Long Term Debt Account Group.

Which of the following is false regarding proprietary fund accounting?

In the government-wide statements,Internal Service Funds are a(n)______ activity,whereas Enterprise Funds are typically a(n)______activity.

Under GASB Statement 34,enterprise funds must be used under which circumstances?

The Water Utility (an enterprise fund)has just sent out a purchase order to a vendor for some new equipment.Which of the following would be included in the journal entry to record this event?

An internal service fund provided services to a General Fund department. At the time of billing,the credit entry in the internal service fund would be:

According to GASB 34,restricted Net Position does not include those that are the results of constraints imposed by creditors,grantors,contributors,or laws or regulations of other governments.

Which of the following is correct with respect to Internal Service Funds?

Which of the following are best described as proprietary funds? I.Internal Service funds II.Pension funds III.Enterprise funds

Unlike enterprise funds,it is frequently desirable for internal service funds to operate at a profit.

What is the appropriate accounting for the signing of a contract to build a new water treatment facility by an Enterprise Fund?

An internal service fund provided services to a General Fund department. At the time of billing,the debit entry in the General Fund would be:

GASB requires that the reconciliation of income and cash flows from operations starts with operating income.

In addition to a Statement of Net Position and Statement of Revenues,Expenses and Changes in Fund Net Position,which of the following statements is (are)required for proprietary funds?

Proprietary funds use the economic resources measurement focus and modified accrual basis of accounting.

Activities that produce goods or services to be provided to other departments or other governmental units on a cost-reimbursement basis are accounted for by enterprise funds.

Which financial statements are required for proprietary funds?

Internal Service Funds account for activities that produce goods or services to be provided to outside customers on a cost reimbursement basis.

Which of the following is not an example of an Enterprise Fund?

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

In the government-wide statements,Internal Service Funds are a(n) activity,whereas Enterprise Funds are typically a(n)activity.