Question 1

Only the GASB's standards for proprietary funds apply to Enterprise and Internal Service Funds.

Accepted Answer

A) True 
 B)False

Question 2

Jockey City operates FUNaquatic Park that meets the GASB definition of an Enterprise Fund (EF). In 2018, the EF enters into a 20-year agreement with Coco's Cabanas to lease shower facilities and changing rooms for the park. If the City were to buy the equipment, it would cost $320,000. Assuming that the present value of the lease payments is $281,526, how should the EF initially report the lease?

Accepted Answer

A)  As a debit to Capital asset-cabanas and shower facilities for $281,526 and a credit to Lease notes payable for the same amount 
B)  As a debit to Intangible asset-lease for $281,526 and a credit to Lease payable for the same amount 
C)  The leased asset and present value of the lease payments should be reported in Jockey City's General Fund 
D)  As a debit to Capital assets-cabanas and shower facilities for $320,000 and a credit for $281,526 to Lease payable and a credit for $38,474 to Deferred interest expense-leases 
A)  As a debit to Capital asset-cabanas and shower facilities for $281,526 and a credit to Lease notes payable for the same amount 
B)  As a debit to Intangible asset-lease for $281,526 and a credit to Lease payable for the same amount 
C)  The leased asset and present value of the lease payments should be reported in Jockey City's General Fund 
D)  As a debit to Capital assets-cabanas and shower facilities for $320,000 and a credit for $281,526 to Lease payable and a credit for $38,474 to Deferred interest expense-leases

Only the GASB's standards for proprietary funds apply to Enterprise and Internal Service Funds.

Governmental and Nonprofit Accounting Environment and Characteristics

The Use of Funds in Governmental Accounting

Budgetary Considerations in Governmental Accounting

An Introduction to General and Special Revenue Funds

General and Special Revenue Funds Continued

Capital Projects Funds, Debt Service Funds, and Permanent Funds

Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Analysis of Financial Statements and Financial Condition

Federal Government Accounting and Reporting

Accounting for Nonprofit Organizations

Accounting for Health Care Organizations

Fundamentals of Accounting

Filters

Exam 7: Proprietary Type Fundsenterprise and Internal Service Funds

Only the GASB's standards for proprietary funds apply to Enterprise and Internal Service Funds.

Governmental and Nonprofit Accounting Environment and Characteristics

The Use of Funds in Governmental Accounting

Budgetary Considerations in Governmental Accounting

An Introduction to General and Special Revenue Funds

General and Special Revenue Funds Continued

Capital Projects Funds, Debt Service Funds, and Permanent Funds

Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Analysis of Financial Statements and Financial Condition

Federal Government Accounting and Reporting

Accounting for Nonprofit Organizations

Accounting for Health Care Organizations

Fundamentals of Accounting

Filters