Exam 6: Proprietary Funds

Investment pools are an example of an activity that may be accounted for in an internal service fund.

Revenue bonds sold by a water utility fund,upon sale,would be recorded:

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

Proprietary funds are required to have a Statement of Revenues,Expenses,and Change in Fund Net Position,a Statement of Net Position,but not a Statement of Cash Flows.

Which of the following is an example of an Internal Service Fund?

Impact fees charged to real estate developers are recorded in an enterprise fund as capital contributions,a nominal account that will increase Net Position,but is reported separately in the statement of Revenues,Expenses and Changes in Fund Net Position.

Activities that produce goods or services to be provided to other departments or other governmental units would be reported in which fund?

The city is using an internal service fund to self-insure its risk financing activities. Claims accrued or paid by this fund are recorded as:

For landfills accounted for as enterprise funds,a portion of the estimated cost of closure of solid waste landfills should be charged as an expense and a liability of the landfill operation each year on a:

Enterprise Funds and Internal Service Funds are part of the larger category of Proprietary Funds.

When an activity is created to provide goods or services to provide assistance to other departments or other governmental units,it should be accounted for in the:

Which of the following would be found in an Enterprise Fund Financial Statement?

The estimated costs of closure of solid waste landfills are measured using:

Proprietary funds do not record capital assets,depreciation on those capital assets,and long-term debt.

Solid waste landfills are required to estimate the cost of closure which include:

The following Statement of Cash Receipts and Disbursements was prepared by the bookkeeper of The Anchorage Arboretum Authority. The Arboretum Authority is a component unit of the City of Anchorage and must be included in the City's financial statements. It began operations on January 1,2015 with no outstanding liabilities or commitments and only 2 assets: (1)$15,000 cash and (2)land that it had paid $ 23,000 to acquire. •The loan from the bank is dated April 1 and is for a five year period. Interest (4% annual rate)is paid on Oct.1 and April 1 of each year,beginning October 1,2015. •The machinery was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful life of 10 years.(straight-line basis) •Supplies on hand amounted to $ 3,760 at December 31,2015. These included $650 of fertilizer that was received on December 29 and paid in January 2015.All other bills and salaries related to 2015 had been paid by close of business on December 31. Required: Part A.Prepare a Statement of Revenues,Expenses and Changes in Net Position for the year ended 12-31-09 for the Arboretum assuming the City plans to account for its activities on the accrual basis. Part B.Prepare a Statement of Revenues,Expenditures and Changes in Fund Balance for the year ended 12-31-09 for the Arboretum assuming the City plans to account for its activities on the modified accrual basis.

Describe the accounting required for risk management activities of governmental units when the government is self-insured.

Which of the following statements is true regarding estimated closure costs for municipal solid waste landfills,assuming that it is operating as an enterprise fund?

Which of the following would not be true regarding internal service funds?

Describe the accounting required by the GASB for municipal solid waste landfill closure and post closure care costs.(It is not necessary to describe footnote disclosures).