Question 1

Which of the following is not an example of an Enterprise Fund?

Accepted Answer

A)  Electric and Water Utilities. 
B)  Public Libraries. 
C)  Sports Stadiums. 
D)  All of the above are commonly reported as enterprise funds. 
A)  Electric and Water Utilities. 
B)  Public Libraries. 
C)  Sports Stadiums. 
D)  All of the above are commonly reported as enterprise funds. B

Question 2

Pollution remediation costs:

Accepted Answer

A)  Are recorded as expenses if they will be paid from current resources. 
B)  Are to be accrued as a liability in the basic financial statements. 
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 recorded as expenses if they will be paid from current resources. 
B)  Are to be accrued as a liability in the basic financial statements. 
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 B

Question 3

Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as:

Accepted Answer

A)  Transfers from the enterprise fund to a capital projects fund. 
B)  Operating revenues to the enterprise fund. 
C)  Capital contributions to the enterprise fund. 
D)  Unearned revenue to the enterprise fund. 
A)  Transfers from the enterprise fund to a capital projects fund. 
B)  Operating revenues to the enterprise fund. 
C)  Capital contributions to the enterprise fund. 
D)  Unearned revenue to the enterprise fund. C

Question 4

Describe the accounting required by the GASB for municipal solid waste landfill closure and post closure care costs.(It is not necessary to describe footnote disclosures).

Accepted Answer

As the Federal Government requires that

Question 5

Which of the following is not true regarding enterprise funds?

Accepted Answer

A)  Enterprise funds record long-term debt directly in the fund accounts. 
B)  Enterprise funds record capital assets directly in the fund accounts. 
C)  Enterprise funds report a Statement of Cash Flows. 
D)  The difference between assets and liabilities of enterprise funds is termed "Fund Balance." 
A)  Enterprise funds record long-term debt directly in the fund accounts. 
B)  Enterprise funds record capital assets directly in the fund accounts. 
C)  Enterprise funds report a Statement of Cash Flows. 
D)  The difference between assets and liabilities of enterprise funds is termed "Fund Balance."

Question 6

The Village of Lake George decided to establish an internal service fund to account for the operations of a Print Shop.The Print Shop is to begin operations on July 1,2013 the first day of the City's fiscal year.During the fiscal year ended June 30,2014 the following transactions occurred:
(a)The General Fund made a permanent contribution of $400,000 and a long-term advance of $800,000 to the Print Shop Fund.The advance is to be repaid by the Print Shop Fund in four equal annual installments; the first installment is due 6/30/2014.The advance is non-interest bearing and is considered issued for the purchases of equipment.
(b)During the year equipment was purchased (for cash)in the amount of $ 890,000.
(c)During the year,printing supplies costing $120,000 were purchased; all but $30,000 was paid in cash.
(d)Billings to departments during the year totaled $ 400,000 at selling price.All but $50,000 was received in cash.
(e)The cost of supplies used during the year totaled $73,000;
(f)Salaries and wages were $19,000 and utilities were $3,000 (all paid in cash); and
(g)Depreciation was charged on equipment,$80,000.
(h)The first installment of the advance was repaid.
Required:
1.Prepare journal entries in the general journal of the Village of Lake George Print Shop Fund to reflect the above transactions.2.Prepare closing entries for the year.3.Prepare,in good form,the equity section of the Statement of Net Assets for the Village of Lake George Print Shop Fund as of June 30,2014.

Accepted Answer

The answer of The Village of Lake George decided to...

Question 7

Long term debt serviced from proprietary funds is recorded in the Long Term Debt Account Group.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true regarding the recording of long term debt in an enterprise fund?

Accepted Answer

A)  When revenue bonds are sold at par, Cash is debited and Bonds Payable is credited. 
B)  The bonds would be reported in both an enterprise fund and in the government-wide statements. 
C)  Both of the above. 
D)  Neither of the above. 
A)  When revenue bonds are sold at par, Cash is debited and Bonds Payable is credited. 
B)  The bonds would be reported in both an enterprise fund and in the government-wide statements. 
C)  Both of the above. 
D)  Neither of the above.

Question 9

Why might it be desirable for an enterprise fund to operate at a profit?

Accepted Answer

Operating profits are necessary to:
•Est

Question 10

An enterprise fund is required if there is a legal requirement that the cost of providing services for an activity,including capital costs,be recovered through fees or charges.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Swimming pool. 
B)  Motor pool. 
C)  Airport. 
D)  Lottery. 
A)  Swimming pool. 
B)  Motor pool. 
C)  Airport. 
D)  Lottery.

Question 12

FASB requires that the reconciliation of income and cash flows from operations starts with operating income.

Accepted Answer

A) True 
 B)False

Question 13

GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?

Accepted Answer

A)  When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. 
B)  When debt is backed by the full faith and credit of the government issuing it. 
C)  When a government is restricted by grant covenants to cover the cost of providing services for an activity. 
D)  All of the above. 
A)  When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. 
B)  When debt is backed by the full faith and credit of the government issuing it. 
C)  When a government is restricted by grant covenants to cover the cost of providing services for an activity. 
D)  All of the above.

Question 14

Internal service funds account for

Accepted Answer

A)  Activities that produce goods or services to be provided to other governmental units on a cost reimbursement basis. 
B)  Activities that produce goods or services to be provided to outside consumers units on a cost reimbursement basis. 
C)  Both A and B. 
D)  None of the above. 
A)  Activities that produce goods or services to be provided to other governmental units on a cost reimbursement basis. 
B)  Activities that produce goods or services to be provided to outside consumers units on a cost reimbursement basis. 
C)  Both A and B. 
D)  None of the above.

Question 15

The Proprietary Fund Statement of Revenues,Expenses,and Changes in Fund Net Assets must include a performance indicator,such as operating income.

Accepted Answer

A) True 
 B)False

Question 16

When preparing the Statement of Cash Flows for the Proprietary Funds,cash flows from noncapital financing activities include all of the following EXCEPT:

Accepted Answer

A)  Receipts from customers. 
B)  Proceeds and repayment of debt not clearly related to capital outlay. 
C)  Grants received from and paid to other governments for noncapital purposes. 
D)  Transfers to and from other funds. 
A)  Receipts from customers. 
B)  Proceeds and repayment of debt not clearly related to capital outlay. 
C)  Grants received from and paid to other governments for noncapital purposes. 
D)  Transfers to and from other funds.

Question 17

Describe the requirements for disclosure of segment information for enterprise funds.

Accepted Answer

Since the basic financial statements inc

Question 18

In addition to a Statement of Net Assets and Statement of Revenues,Expenses and Changes in Fund Net Assets,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 19

Describe the differences in cash flow statements required by GASB standards when compared with cash flow statements required by FASB standards.

Accepted Answer

•GASB requires four categories: operatin

Question 20

GASB requires the indirect method to determine cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Which of the following is not an example of an Enterprise Fund?

Pollution remediation costs:

Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as:

Describe the accounting required by the GASB for municipal solid waste landfill closure and post closure care costs.(It is not necessary to describe footnote disclosures).

Which of the following is not true regarding enterprise funds?

Long term debt serviced from proprietary funds is recorded in the Long Term Debt Account Group.

Which of the following is true regarding the recording of long term debt in an enterprise fund?

Why might it be desirable for an enterprise fund to operate at a profit?

An enterprise fund is required if there is a legal requirement that the cost of providing services for an activity,including capital costs,be recovered through fees or charges.

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

FASB requires that the reconciliation of income and cash flows from operations starts with operating income.

GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?

Internal service funds account for

The Proprietary Fund Statement of Revenues,Expenses,and Changes in Fund Net Assets must include a performance indicator,such as operating income.

When preparing the Statement of Cash Flows for the Proprietary Funds,cash flows from noncapital financing activities include all of the following EXCEPT:

Describe the requirements for disclosure of segment information for enterprise funds.

In addition to a Statement of Net Assets and Statement of Revenues,Expenses and Changes in Fund Net Assets,which of the following statements is (are)required for proprietary funds?

Describe the differences in cash flow statements required by GASB standards when compared with cash flow statements required by FASB standards.

GASB requires the indirect method to determine cash flows from operating activities.

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 Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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Exam 6: Proprietary Funds

Which of the following is not an example of an Enterprise Fund?

Pollution remediation costs:

Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as:

Describe the accounting required by the GASB for municipal solid waste landfill closure and post closure care costs.(It is not necessary to describe footnote disclosures).

Which of the following is not true regarding enterprise funds?

Long term debt serviced from proprietary funds is recorded in the Long Term Debt Account Group.

Which of the following is true regarding the recording of long term debt in an enterprise fund?

Why might it be desirable for an enterprise fund to operate at a profit?

An enterprise fund is required if there is a legal requirement that the cost of providing services for an activity,including capital costs,be recovered through fees or charges.

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

FASB requires that the reconciliation of income and cash flows from operations starts with operating income.

GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?

Internal service funds account for

The Proprietary Fund Statement of Revenues,Expenses,and Changes in Fund Net Assets must include a performance indicator,such as operating income.

When preparing the Statement of Cash Flows for the Proprietary Funds,cash flows from noncapital financing activities include all of the following EXCEPT:

Describe the requirements for disclosure of segment information for enterprise funds.

In addition to a Statement of Net Assets and Statement of Revenues,Expenses and Changes in Fund Net Assets,which of the following statements is (are)required for proprietary funds?

Describe the differences in cash flow statements required by GASB standards when compared with cash flow statements required by FASB standards.

GASB requires the indirect method to determine cash flows from operating activities.

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 Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters