Exam 6: Proprietary Funds

According to GASB, restricted Net Position does not include net resources under 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?

GASB requires the ____________ method to report cash flows from operating activities in the Statement of Cash Flows.

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

The excess of assets over liabilities of proprietary funds is termed "Net Position."

An internal service fund is required whenever an activity is funded by fees or charges from other government departments.

Long-term liabilities of an enterprise fund should be reported in the: $\quad\quad\quad\text { Proprietary Fund\quad Government-Wide }$ $\quad\quad\quad\quad\underline{\text{Statements}}\quad\quad\quad\quad\quad\underline{\text{Statements}}$ A) $\quad \quad \quad \quad \quad \text { No }\quad \quad \quad \quad \quad \quad \quad \quad \text { No }$ B) $\quad \quad \quad \quad \quad\text { Yes } \quad \quad \quad \quad \quad\quad \quad \quad \text { Yes }$ C) $\quad \quad \quad \quad \quad\text { Yes } \quad \quad \quad \quad \quad\quad \quad \quad \text { No }$ d) $\quad \quad \quad \quad \quad\text { No } \quad \quad \quad \quad \quad\quad \quad \quad \text { Yes }$

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

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

Which financial statements are required for a proprietary fund?

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

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

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

Governmental units use which fund type to account for services provided to the general public on a user-charge basis?

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

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:

Which of the following is true regarding the Statement of Cash Flows required by the GASB for proprietary funds?

An Enterprise Fund has an indefinite life.

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

An example of an activity that would not normally be accounted for in an internal service fund would be: