Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is false regarding proprietary fund accounting?

Accepted Answer

A)  The economic resources measurement focus and accrual accounting are used. 
B)  Capital assets are recorded in the accounts and depreciated over their useful lives. 
C)  The Statement of Net Assets must be in a classified format, with current assets separated from noncurrent assets and current liabilities separated from noncurrent liabilities. 
D)  In the Statement of Net Assets, the net assets are reported as either reserved or unreserved. 
A)  The economic resources measurement focus and accrual accounting are used. 
B)  Capital assets are recorded in the accounts and depreciated over their useful lives. 
C)  The Statement of Net Assets must be in a classified format, with current assets separated from noncurrent assets and current liabilities separated from noncurrent liabilities. 
D)  In the Statement of Net Assets, the net assets are reported as either reserved or unreserved.

Question 3

Capital assets of an enterprise fund should be reported in the:

Accepted Answer

A)  Government-Wide Statement of Net Assets only. 
B)  Proprietary Fund Statement of Net Assets only. 
C)  General Fixed Asset Account Group only. 
D)  Government-Wide Statement of Net Assets and Proprietary Funds Statement of Net Assets. 
A)  Government-Wide Statement of Net Assets only. 
B)  Proprietary Fund Statement of Net Assets only. 
C)  General Fixed Asset Account Group only. 
D)  Government-Wide Statement of Net Assets and Proprietary Funds Statement of Net Assets.

Question 4

Unlike enterprise funds,it is frequently desirable for internal service funds to operate at a profit.

Accepted Answer

A) True 
 B)False

Question 5

Centralized purchasing,computer services,and janitorial services are examples of activities that are commonly reported in:

Accepted Answer

A)  Enterprise funds. 
B)  Capital project funds. 
C)  Debt service funds. 
D)  Internal service funds. 
A)  Enterprise funds. 
B)  Capital project funds. 
C)  Debt service funds. 
D)  Internal service funds.

Question 6

Which of the following funds use accrual accounting?

Accepted Answer

A)  Internal Service Fund. 
B)  Special Revenue Fund. 
C)  Permanent Fund. 
D)  Both A & B. 
A)  Internal Service Fund. 
B)  Special Revenue Fund. 
C)  Permanent Fund. 
D)  Both A & B.

Question 7

Investment pools are an example of an activity that may be accounted for in an internal service fund.

Accepted Answer

A) True 
 B)False

Question 8

GASB requires the ____________ method to report cash flows from operating activities in the Statement of Cash Flows.

Accepted Answer

A)  Indirect. 
B)  Direct. 
C)  Modified accrual 
D)  Full accrual 
A)  Indirect. 
B)  Direct. 
C)  Modified accrual 
D)  Full accrual

Question 9

Proprietary funds utilize what basis of accounting?

Accepted Answer

A)  Modified accrual. 
B)  Accrual. 
C)  Cash. 
D)  Budgetary. 
A)  Modified accrual. 
B)  Accrual. 
C)  Cash. 
D)  Budgetary.

Question 10

Under GASB Statement 34,enterprise funds must be used in which of the following circumstances?

Accepted Answer

A)  When debt is backed solely by fees and charges. 
B)  When services are provided to other governmental units for a fee. 
C)  When the activities are expected to make a profit to be used to fund other government programs. 
D)  None of the above; enterprise funds are optional. 
A)  When debt is backed solely by fees and charges. 
B)  When services are provided to other governmental units for a fee. 
C)  When the activities are expected to make a profit to be used to fund other government programs. 
D)  None of the above; enterprise funds are optional.

Question 11

Enterprise funds are used to account for activities similar to those engaged in profit-seeking businesses.

Accepted Answer

A) True 
 B)False

Question 12

Internal Service funds are reported in the fund-basis statements only.

Accepted Answer

A) True 
 B)False

Question 13

An enterprise fund should be used when debt is back solely by fees and charges

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of an Internal Service Fund?

Accepted Answer

A)  State Risk Management Fund 
B)  County Water and Sewer Utilities. 
C)  State Lotteries. 
D)  Municipal Golf Courses. 
A)  State Risk Management Fund 
B)  County Water and Sewer Utilities. 
C)  State Lotteries. 
D)  Municipal Golf Courses.

Question 15

According to GASB 34,restricted net assets include those that are the results of constraints imposed by creditors,grantors,contributors,or laws or regulations of other governments.

Accepted Answer

A) True 
 B)False

Question 16

Budgetary comparison schedules are required for proprietary funds.

Accepted Answer

A) True 
 B)False

Question 17

Revenue bonds sold by a water utility fund,upon sale,would be recorded:

Accepted Answer

A)  In an enterprise fund as "Other Financing Source." 
B)  In an enterprise fund as a liability. 
C)  In the general long-term debt accounts as a liability. 
D)  In an enterprise fund as an addition to net assets. 
A)  In an enterprise fund as "Other Financing Source." 
B)  In an enterprise fund as a liability. 
C)  In the general long-term debt accounts as a liability. 
D)  In an enterprise fund as an addition to net assets.

Question 18

Long term debt serviced from proprietary funds is reported only in the government-wide Statement of Net Assets.

Accepted Answer

A) True 
 B)False

Question 19

Which financial statements are required for proprietary funds?

Accepted Answer

A)  Statement of net assets; Statement of revenues, expenses, and changes in fund net assets; Statement of cash flows. 
B)  Budgetary comparison schedule; Statement of revenues, expenditures, and changes in fund balance; Statement of net assets. 
C)  Statement of net assets; Statement of revenues, expenditures, and changes in fund balances; Statement of cash flows. 
D)  Statement of net assets; Statement of revenues, expenses, and changes in fund net assets; 
A)  Statement of net assets; Statement of revenues, expenses, and changes in fund net assets; Statement of cash flows. 
B)  Budgetary comparison schedule; Statement of revenues, expenditures, and changes in fund balance; Statement of net assets. 
C)  Statement of net assets; Statement of revenues, expenditures, and changes in fund balances; Statement of cash flows. 
D)  Statement of net assets; Statement of revenues, expenses, and changes in fund net assets;

Question 20

Activities that produce goods or services to be provided to other departments or other governmental units would be reported in which fund?

Accepted Answer

A)  Enterprise fund. 
B)  Internal service fund. 
C)  Agency fund. 
D)  Advance fund. 
A)  Enterprise fund. 
B)  Internal service fund. 
C)  Agency fund. 
D)  Advance fund.

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

Which of the following is false regarding proprietary fund accounting?

Capital assets of an enterprise fund should be reported in the:

Unlike enterprise funds,it is frequently desirable for internal service funds to operate at a profit.

Centralized purchasing,computer services,and janitorial services are examples of activities that are commonly reported in:

Which of the following funds use accrual accounting?

Investment pools are an example of an activity that may be accounted for in an internal service fund.

GASB requires the ____________ method to report cash flows from operating activities in the Statement of Cash Flows.

Proprietary funds utilize what basis of accounting?

Under GASB Statement 34,enterprise funds must be used in which of the following circumstances?

Enterprise funds are used to account for activities similar to those engaged in profit-seeking businesses.

Internal Service funds are reported in the fund-basis statements only.

An enterprise fund should be used when debt is back solely by fees and charges

Which of the following is an example of an Internal Service Fund?

According to GASB 34,restricted net assets include those that are the results of constraints imposed by creditors,grantors,contributors,or laws or regulations of other governments.

Budgetary comparison schedules are required for proprietary funds.

Revenue bonds sold by a water utility fund,upon sale,would be recorded:

Long term debt serviced from proprietary funds is reported only in the government-wide Statement of Net Assets.

Which financial statements are required for proprietary funds?

Activities that produce goods or services to be provided to other departments or other governmental units would be reported in which fund?

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

Exam 6: Proprietary Funds

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

Which of the following is false regarding proprietary fund accounting?

Capital assets of an enterprise fund should be reported in the:

Unlike enterprise funds,it is frequently desirable for internal service funds to operate at a profit.

Centralized purchasing,computer services,and janitorial services are examples of activities that are commonly reported in:

Which of the following funds use accrual accounting?

Investment pools are an example of an activity that may be accounted for in an internal service fund.

GASB requires the ____________ method to report cash flows from operating activities in the Statement of Cash Flows.

Proprietary funds utilize what basis of accounting?

Under GASB Statement 34,enterprise funds must be used in which of the following circumstances?

Enterprise funds are used to account for activities similar to those engaged in profit-seeking businesses.

Internal Service funds are reported in the fund-basis statements only.

An enterprise fund should be used when debt is back solely by fees and charges

Which of the following is an example of an Internal Service Fund?

According to GASB 34,restricted net assets include those that are the results of constraints imposed by creditors,grantors,contributors,or laws or regulations of other governments.

Budgetary comparison schedules are required for proprietary funds.

Revenue bonds sold by a water utility fund,upon sale,would be recorded:

Long term debt serviced from proprietary funds is reported only in the government-wide Statement of Net Assets.

Which financial statements are required for proprietary funds?

Activities that produce goods or services to be provided to other departments or other governmental units would be reported in which fund?

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