Question 1

This fund accounts for activities that produce goods or services to be provided to other departments or other governmental units.

Accepted Answer

A)  Enterprise fund. 
B)  Internal Service fund. 
C)  Special Revenue fund. 
D)  Debt Service fund. 
A)  Enterprise fund. 
B)  Internal Service fund. 
C)  Special Revenue fund. 
D)  Debt Service fund.

Question 2

Which of the following funds use accrual accounting?

Accepted Answer

A)  Internal Service Fund. 
B)  Special Revenue Fund. 
C)  Permanent Fund. 
D)  Both A & B. 
A)  Internal Service Fund. 
B)  Special Revenue Fund. 
C)  Permanent Fund. 
D)  Both A & B.

Question 3

As of July 1,2014,the City of Saratoga Springs decided to purchase a privately operated swimming pool and to create a Swimming Pool (Enterprise)Fund. During the year,the following transactions occurred:
(a)A permanent contribution of $ 800,000 was received from the General Fund.
(b)$ 1,000,000 was borrowed with a Note Payable from a local bank at an interest rate of 6%.
(c)Purchased for cash several items,the cost breakdown was:
 land,$300,000; building,$400,000,land improvement,$400,000; equipment,$200,000; supplies,$190,000.
(d)Charges for services amounted to $600,000,all received in cash.
(e)Cash expenses included:
 salaries,$200,000; utilities,$100,000; interest (paid on 6/30/2015),$60,000.
(f)Supplies were consumed in the amount of $120,000.
(g)Depreciation was recorded for:
 building,$20,000,land improvement,$40,000; equipment,$20,000.
(h)The books were closed. Close all accounts to Net Position.
Required:
1.Record the above transactions in general journal form (on the books of the swimming pool fund).2.Prepare,in good form,a Statement of Revenues,Expenses,and Changes in Fund Net Position for the City of Saratoga Springs Swimming Pool Fund for the Year Ended June 30,2015.3.Prepare,in good form,a Statement of Fund Net Position for the City of Saratoga Springs Swimming Pool Fund as of June 30,2015.4.Prepare,in good form,a Statement of Cash Flows for the City of Saratoga Springs Swimming Pool Fund for the Year Ended June 30,2015. Assume all of the revenue bonds payable are for capital-related acquisitions and that the transfer was to establish working capital (i.e.a non-capital-related purpose).

Accepted Answer

The answer of As of July 1,2014,the City of Saratoga...

Question 4

Montgomery County operates a landfill as an enterprise fund. The closure and post-closure care costs are estimated to be $25 million. It is estimated that the capacity of the landfill is 12 million tons of waste and that waste will be accepted for 5 years.During 2015,3 million tons of waste was accepted. The charge for closure and post-closure care costs for 2015 would be:

Accepted Answer

A)  $ 6.25 million. 
B)  $ 5.8 million. 
C)  $ 5 million. 
D)  $ 2.4 million. 
A)  $ 6.25 million. 
B)  $ 5.8 million. 
C)  $ 5 million. 
D)  $ 2.4 million.

Question 5

If a government decides to account for its risk management activities in a single fund,it must use:

Accepted Answer

A)  An Internal Service Fund. 
B)  A Fiduciary Fund 
C)  A Special Revenue Fund. 
D)  Either the General Fund or an Internal Service fund. 
A)  An Internal Service Fund. 
B)  A Fiduciary Fund 
C)  A Special Revenue Fund. 
D)  Either the General Fund or an Internal Service fund.

Question 6

According to GASB 34,restricted Net Position include those that are the results of constraints imposed by law through constitutional provisions or enabling legislation.

Accepted Answer

A) True 
 B)False

Question 7

Capital assets constructed by an internal service fund are recorded in a capital projects fund.

Accepted Answer

A) True 
 B)False

Question 8

Enterprise funds are reported in the fund-basis statements only.

Accepted Answer

A) True 
 B)False

Question 9

According to GASB Statement 34,restricted net assets are those that are the result of constraints from:

Accepted Answer

A)  Imposed by law though constitutional provisions 
B)  Imposed by enabling legislation 
C)  Imposed by creditors or grantors 
D)  All of the above 
A)  Imposed by law though constitutional provisions 
B)  Imposed by enabling legislation 
C)  Imposed by creditors or grantors 
D)  All of the above

Question 10

Revenue bonds sold by a water utility fund,upon sale,would be recorded in an enterprise fund as:

Accepted Answer

A)  Other Financing Sources-Proceeds of Bonds. 
B)  A liability. 
C)  A direct addition to Net Position. 
D)  Nonoperating Revenues-Proceeds of Bonds. 
A)  Other Financing Sources-Proceeds of Bonds. 
B)  A liability. 
C)  A direct addition to Net Position. 
D)  Nonoperating Revenues-Proceeds of Bonds.

Question 11

Which of the following would generally be included in the Statement of Net Position of an Enterprise Fund?

Accepted Answer

The answer of Which of the following would generally be...

Question 12

Pollution remediation costs:

Accepted Answer

A)  Are to be accrued as a liability in the basic financial statements. 
B)  Are recorded as expenses if they will be paid from current resources. 
C)  Are not an issue is the state or local government merely used (but did not operate) the polluted site. 
D)  All of the above 
A)  Are to be accrued as a liability in the basic financial statements. 
B)  Are recorded as expenses if they will be paid from current resources. 
C)  Are not an issue is the state or local government merely used (but did not operate) the polluted site. 
D)  All of the above

Question 13

GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?

Accepted Answer

A)  When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. 
B)  When debt is backed solely by fees and charges. 
C)  When a government has a policy to establish fees and charges to cover the cost of providing services for an activity. 
D)  All of the above. 
A)  When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. 
B)  When debt is backed solely by fees and charges. 
C)  When a government has a policy to establish fees and charges to cover the cost of providing services for an activity. 
D)  All of the above.

Question 14

Proprietary Funds use the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 15

Restricted Net Position for a proprietary fund is:

Accepted Answer

A)  Net resources whose use is restricted by users of the services. 
B)  Reported net of depreciation. 
C)  Reported net of accumulated depreciation and any outstanding debt used to acquire the asset. 
D)  Net resources whose use is restricted by creditors, grantors or laws or regulations of other governments. 
A)  Net resources whose use is restricted by users of the services. 
B)  Reported net of depreciation. 
C)  Reported net of accumulated depreciation and any outstanding debt used to acquire the asset. 
D)  Net resources whose use is restricted by creditors, grantors or laws or regulations of other governments.

Question 16

The Statement of Cash Flows for a proprietary fund would include which of the following?

Accepted Answer

A)  Operating, investing, financing 
B)  Operating, capital and related financing, investing 
C)  Operating, investing, fiduciary and capital related financing activities 
D)  Operating, investing, capital and related financing and noncapital related financing 
A)  Operating, investing, financing 
B)  Operating, capital and related financing, investing 
C)  Operating, investing, fiduciary and capital related financing activities 
D)  Operating, investing, capital and related financing and noncapital related financing

Question 17

Which of the following is true regarding internal service funds?

Accepted Answer

A)  Internal service funds provide services primarily to external users on a user charge basis. 
B)  Internal service funds normally record the annual budget in the accounts. 
C)  Internal service funds' capital assets are not accounted for in the accounts. 
D)  Internal service funds use full accrual accounting. 
A)  Internal service funds provide services primarily to external users on a user charge basis. 
B)  Internal service funds normally record the annual budget in the accounts. 
C)  Internal service funds' capital assets are not accounted for in the accounts. 
D)  Internal service funds use full accrual accounting.

Question 18

Under GASB Statement 34,enterprise funds must be used in which of the following circumstances?

Accepted Answer

A)  When debt is backed solely by fees and charges. 
B)  When services are provided to other governmental units for a fee. 
C)  When the activities are expected to make a profit to be used to fund other government programs. 
D)  None of the above; enterprise funds are optional. 
A)  When debt is backed solely by fees and charges. 
B)  When services are provided to other governmental units for a fee. 
C)  When the activities are expected to make a profit to be used to fund other government programs. 
D)  None of the above; enterprise funds are optional.

Question 19

An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges.

Accepted Answer

A) True 
 B)False

Question 20

Proprietary funds report using the economic resources measurement focus and the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

This fund accounts for activities that produce goods or services to be provided to other departments or other governmental units.

Which of the following funds use accrual accounting?

If a government decides to account for its risk management activities in a single fund,it must use:

According to GASB 34,restricted Net Position include those that are the results of constraints imposed by law through constitutional provisions or enabling legislation.

Capital assets constructed by an internal service fund are recorded in a capital projects fund.

Enterprise funds are reported in the fund-basis statements only.

According to GASB Statement 34,restricted net assets are those that are the result of constraints from:

Revenue bonds sold by a water utility fund,upon sale,would be recorded in an enterprise fund as:

Which of the following would generally be included in the Statement of Net Position of an Enterprise Fund?

Pollution remediation costs:

GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?

Proprietary Funds use the accrual basis of accounting.

Restricted Net Position for a proprietary fund is:

The Statement of Cash Flows for a proprietary fund would include which of the following?

Which of the following is true regarding internal service funds?

Under GASB Statement 34,enterprise funds must be used in which of the following circumstances?

An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges.

Proprietary funds report using the economic resources measurement focus and the accrual basis of accounting.

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

This fund accounts for activities that produce goods or services to be provided to other departments or other governmental units.

Which of the following funds use accrual accounting?

If a government decides to account for its risk management activities in a single fund,it must use:

According to GASB 34,restricted Net Position include those that are the results of constraints imposed by law through constitutional provisions or enabling legislation.

Capital assets constructed by an internal service fund are recorded in a capital projects fund.

Enterprise funds are reported in the fund-basis statements only.

According to GASB Statement 34,restricted net assets are those that are the result of constraints from:

Revenue bonds sold by a water utility fund,upon sale,would be recorded in an enterprise fund as:

Which of the following would generally be included in the Statement of Net Position of an Enterprise Fund?

Pollution remediation costs:

GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?

Proprietary Funds use the accrual basis of accounting.

Restricted Net Position for a proprietary fund is:

The Statement of Cash Flows for a proprietary fund would include which of the following?

Which of the following is true regarding internal service funds?

Under GASB Statement 34,enterprise funds must be used in which of the following circumstances?

An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges.

Proprietary funds report using the economic resources measurement focus and the accrual basis of accounting.

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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