Exam 9: Business-Type Activities and Internal Services

In accounting for closure and postclosure landfill costs in an enterprise fund, a government does not necessarily have to "fund" the costs during the landfill's useful life; it merely has to report both an expense and a liability for them.

Lehi City has designated an internal service fund as the single fund to account for its self-insurance activities.Most of the insured activities such as the police department, fire department, and general government functions are accounted for in the General Fund.What is the maximum amount that can be charged to expenditure in the General Fund related to the self-insurance activities?

Any internal service fund balances that are not eliminated in the consolidation process should generally be presented on the government-wide financial statements

The City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Service Fund At the date of issue, the appropriate entry in the proprietary fund is a $ 2 million debit to cash and a $2 million credit to

Which of the following are required basic statements of a proprietary fund?

The appropriate entry in the proprietary fund is a debit to cash for $500,000 and a credit for $500,000 to

Which of the following is NOT true about internal service funds as reported in the fund financial statements?

Which of the following is not a proprietary fund?

Which of the following is NOT a valid reason for governmental entities to engage in business-type activities?

A proprietary fund of a governmental entity has donor-restricted assets on its balance sheet.Which of the following best describes where and how those assets will generally be displayed?

The revenues of an internal service fund are the expenditures and expenses of other funds of that government.

The appropriate basis of accounting for the proprietary funds of a governmental entity is

In the Statement of Net Assets, the net assets of a proprietary fund should be displayed in which of the following categories?

Governments generally do not have to get formal legislative approval for enterprise fund budgets or incorporate them into their accounting systems.

The appropriate entry in the General Fund to account for this transfer would be a credit to cash for $500,000 and a debit for $500,000 to

On the fund financial statements, internal service activities should be presented

Governments are required to prepare a statement of cash flows for proprietary funds, but not for governmental funds.

In which of the following circumstances must an enterprise fund be used to account for the activity?

Over the long run, governmental internal service funds are intended to

GASB Statement No.34 mandates that governments report their cash flows from operations using the indirect method.