Question 1

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 2

The term "proprietary funds" includes enterprise and internal service funds.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Which of the following is not true regarding proprietary funds?

Accepted Answer

A)  Accrual accounting and the economic resource measurement focus are used. 
B)  Statements required are the Balance Sheet, the Statement of Revenues, Expenditures, and Changes in Fund Balances, and the Statement of Cash Flows. 
C)  Long Term debt is recorded directly in the accounts. 
D)  Proprietary funds financial reports include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. 
A)  Accrual accounting and the economic resource measurement focus are used. 
B)  Statements required are the Balance Sheet, the Statement of Revenues, Expenditures, and Changes in Fund Balances, and the Statement of Cash Flows. 
C)  Long Term debt is recorded directly in the accounts. 
D)  Proprietary funds financial reports include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows.

Question 5

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 6

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:

Accepted Answer

A)  Special Revenue Fund. 
B)  Internal Services Fund. 
C)  Enterprise Fund. 
D)  General Fixed Asset Group. 
A)  Special Revenue Fund. 
B)  Internal Services Fund. 
C)  Enterprise Fund. 
D)  General Fixed Asset Group.

Question 7

According to GASB, 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 8

GASB Cash Flow Statements require the indirect method to determine cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 9

Pollution remediation costs:

Accepted Answer

A)  Are to be accrued as a liability in the 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 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 10

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 accrual accounting and the economic resources measurement focus. 
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 accrual accounting and the economic resources measurement focus.

Question 11

Which of the following statements is correct?

Accepted Answer

A)  GASB standards require the use of internal service funds. 
B)  Net position is unrestricted for an internal service fund. 
C)  Internal service funds do not record long-term debt. 
D)  Revenues for an internal service fund would be called Charges for Services rather than sales. 
A)  GASB standards require the use of internal service funds. 
B)  Net position is unrestricted for an internal service fund. 
C)  Internal service funds do not record long-term debt. 
D)  Revenues for an internal service fund would be called Charges for Services rather than sales.

Question 12

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;

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

The term "proprietary funds" includes enterprise and internal service funds.

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?

Which of the following is not true regarding proprietary funds?

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

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:

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

GASB Cash Flow Statements require the indirect method to determine cash flows from operating activities.

Pollution remediation costs:

Which of the following is true regarding internal service funds?

Which of the following statements is correct?

Which financial statements are required for proprietary funds?

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, Interfund Transactions

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

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

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

The term "proprietary funds" includes enterprise and internal service funds.

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?

Which of the following is not true regarding proprietary funds?

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

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:

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

GASB Cash Flow Statements require the indirect method to determine cash flows from operating activities.

Pollution remediation costs:

Which of the following is true regarding internal service funds?

Which of the following statements is correct?

Which financial statements are required for proprietary funds?

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, Interfund Transactions

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters