Question 1

An internal service fund normally uses which of the following budgetary accounts?

Accepted Answer

A)  Estimated Revenues. 
B)  Appropriations. 
C)  Encumbrances. 
D)  An internal service fund normally does not use budgetary accounts. 
A)  Estimated Revenues. 
B)  Appropriations. 
C)  Encumbrances. 
D)  An internal service fund normally does not use budgetary accounts.

Question 2

For proprietary funds,governments generally present a statement of net position in a format that displays assets,plus deferred outflows of resources,less liabilities,less deferred inflows of resources,equals net position.

Accepted Answer

A) True 
 B)False

Question 3

In the information for the Supplies Fund that follows,the account "Interfund Transfer In from General Fund" should be credited for $89,200 because this amount was transferred from the General Fund to the Supplies Fund in a nonexchange transfer that will not have to be repaid.

Accepted Answer

A) True 
 B)False

Question 4

Internal balances between governmental and business-type activities are reported in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 5

The liability for long-term debt issued to provide financing for an enterprise fund and to be serviced from revenues of the enterprise fund should be reported in the financial statements of the enterprise fund,even though the debt also is backed by the general obligation credit of the government.

Accepted Answer

A) True 
 B)False

Question 6

How does GASB reporting of uncollectible accounts for governmental funds and proprietary funds differ from the reporting of uncollectible accounts under FASB standards?

Accepted Answer

The Governmental Accounting Standards Bo

Question 7

How should financial information for internal service funds be reported in the government-wide financial statements?

Accepted Answer

A)  As part of governmental activities. 
B)  As part of business-type activities. 
C)  Amounts allocated proportionately between governmental and business-type activities. 
D)  Usually as part of governmental activities,unless the internal service fund predominantly serves one or more enterprise funds. 
A)  As part of governmental activities. 
B)  As part of business-type activities. 
C)  Amounts allocated proportionately between governmental and business-type activities. 
D)  Usually as part of governmental activities,unless the internal service fund predominantly serves one or more enterprise funds.

Question 8

Which of the following accounts would appropriately be included on an enterprise fund balance sheet?

Accepted Answer

A)  Fund Balance: No; Net Position-Unrestricted: Yes 
B)  Fund Balance: Yes; Net Position-Unrestricted: No 
C)  Fund Balance: No; Net Position-Unrestricted: No 
D)  Fund Balance: Yes; Net Position-Unrestricted: Yes 
A)  Fund Balance: No; Net Position-Unrestricted: Yes 
B)  Fund Balance: Yes; Net Position-Unrestricted: No 
C)  Fund Balance: No; Net Position-Unrestricted: No 
D)  Fund Balance: Yes; Net Position-Unrestricted: Yes

Question 9

A statement of cash flows is not prepared for an internal service fund.

Accepted Answer

A) True 
 B)False

Question 10

Interest and principal on enterprise fund revenue bonds should be recorded in a debt service fund until paid.

Accepted Answer

A) True 
 B)False

Question 11

Legislators often believe an internal service fund function will not be subjected to annual legislative budget review and the legislature will "lose control" of the fund.Do you agree with this line of reasoning? Why or why not?

Accepted Answer

The answer of Legislators often believe an internal service fund...

Question 12

"Reporting 'utility plant in service' as a single line on the balance sheet provides adequate information for regulatory purposes and/or sound management." Do you agree with the statement? Explain why or why not.

Accepted Answer

I do not agree with the statement. Repor

Question 13

The Capitol City Golf Course,an enterprise fund,purchased new furniture for use in the golf pro's office.The debit for the entry to record the event should be to

Accepted Answer

A)  Expenditures. 
B)  Purchases. 
C)  Furniture and fixtures. 
D)  General capital assets. 
A)  Expenditures. 
B)  Purchases. 
C)  Furniture and fixtures. 
D)  General capital assets.

Question 14

Which of the following is not a true statement about the Allowance for Funds Used During Construction (AFUDC)?

Accepted Answer

A)  AFUDC may have either a debt component or an equity component. 
B)  The amount credited to AFUDC may exceed the amount of interest paid during the period on bonds issued for construction. 
C)  AFUDC may be credited for an imputed amount of interest on the utility's own funds used for construction. 
D)  AFUDC may include the total amount of borrowing during construction. 
A)  AFUDC may have either a debt component or an equity component. 
B)  The amount credited to AFUDC may exceed the amount of interest paid during the period on bonds issued for construction. 
C)  AFUDC may be credited for an imputed amount of interest on the utility's own funds used for construction. 
D)  AFUDC may include the total amount of borrowing during construction.

An internal service fund normally uses which of the following budgetary accounts?

For proprietary funds,governments generally present a statement of net position in a format that displays assets,plus deferred outflows of resources,less liabilities,less deferred inflows of resources,equals net position.

In the information for the Supplies Fund that follows,the account "Interfund Transfer In from General Fund" should be credited for $89,200 because this amount was transferred from the General Fund to the Supplies Fund in a nonexchange transfer that will not have to be repaid.

Internal balances between governmental and business-type activities are reported in the government-wide statements.

The liability for long-term debt issued to provide financing for an enterprise fund and to be serviced from revenues of the enterprise fund should be reported in the financial statements of the enterprise fund,even though the debt also is backed by the general obligation credit of the government.

How does GASB reporting of uncollectible accounts for governmental funds and proprietary funds differ from the reporting of uncollectible accounts under FASB standards?

How should financial information for internal service funds be reported in the government-wide financial statements?

Which of the following accounts would appropriately be included on an enterprise fund balance sheet?

A statement of cash flows is not prepared for an internal service fund.

Interest and principal on enterprise fund revenue bonds should be recorded in a debt service fund until paid.

Legislators often believe an internal service fund function will not be subjected to annual legislative budget review and the legislature will "lose control" of the fund.Do you agree with this line of reasoning? Why or why not?

"Reporting 'utility plant in service' as a single line on the balance sheet provides adequate information for regulatory purposes and/or sound management." Do you agree with the statement? Explain why or why not.

The Capitol City Golf Course,an enterprise fund,purchased new furniture for use in the golf pro's office.The debit for the entry to record the event should be to

Which of the following is not a true statement about the Allowance for Funds Used During Construction (AFUDC)?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for Fiduciary Activities-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 7: Accounting for the Business-Type Activities of State and Local Governments

An internal service fund normally uses which of the following budgetary accounts?

For proprietary funds,governments generally present a statement of net position in a format that displays assets,plus deferred outflows of resources,less liabilities,less deferred inflows of resources,equals net position.

In the information for the Supplies Fund that follows,the account "Interfund Transfer In from General Fund" should be credited for $89,200 because this amount was transferred from the General Fund to the Supplies Fund in a nonexchange transfer that will not have to be repaid.

Internal balances between governmental and business-type activities are reported in the government-wide statements.

The liability for long-term debt issued to provide financing for an enterprise fund and to be serviced from revenues of the enterprise fund should be reported in the financial statements of the enterprise fund,even though the debt also is backed by the general obligation credit of the government.

How does GASB reporting of uncollectible accounts for governmental funds and proprietary funds differ from the reporting of uncollectible accounts under FASB standards?

How should financial information for internal service funds be reported in the government-wide financial statements?

Which of the following accounts would appropriately be included on an enterprise fund balance sheet?

A statement of cash flows is not prepared for an internal service fund.

Interest and principal on enterprise fund revenue bonds should be recorded in a debt service fund until paid.

Legislators often believe an internal service fund function will not be subjected to annual legislative budget review and the legislature will "lose control" of the fund.Do you agree with this line of reasoning? Why or why not?

"Reporting 'utility plant in service' as a single line on the balance sheet provides adequate information for regulatory purposes and/or sound management." Do you agree with the statement? Explain why or why not.

The Capitol City Golf Course,an enterprise fund,purchased new furniture for use in the golf pro's office.The debit for the entry to record the event should be to

Which of the following is not a true statement about the Allowance for Funds Used During Construction (AFUDC)?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for Fiduciary Activities-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

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