Question 1

Which of the following are best described as proprietary funds?
I.Internal Service funds
II.Pension funds
III.Enterprise funds

Accepted Answer

A)  I only. 
B)  I and II. 
C)  I and III. 
D)  I, II, and III. 
A)  I only. 
B)  I and II. 
C)  I and III. 
D)  I, II, and III.

Question 2

The four categories on the Statement of Cash Flows for a proprietary fund are operating,non-capital financing activities,capital and related financing activities,and investing activities.

Accepted Answer

A) True 
 B)False

Question 3

Financial statements for proprietary funds are prepared using the current financial resource measurement focus.

Accepted Answer

A) True 
 B)False

Question 4

All of the following are true about proprietary funds EXCEPT:

Accepted Answer

A)  They include Internal Service Funds and Enterprise Funds. 
B)  The economic resources measurement focus is used. 
C)  They include the Enterprise and Special Revenue Funds. 
D)  Accrual accounting is used as the basis of accounting. 
A)  They include Internal Service Funds and Enterprise Funds. 
B)  The economic resources measurement focus is used. 
C)  They include the Enterprise and Special Revenue Funds. 
D)  Accrual accounting is used as the basis of accounting.

Question 5

Long term liabilities of an enterprise fund are not reported in the proprietary fund statements,but are reported in government-wide statements.

Accepted Answer

A) True 
 B)False

Question 6

Revenue bonds

Accepted Answer

A)  Carry less risk than general obligation bonds. 
B)  Are no longer in existence. 
C)  Are intended to be payable from the revenues of an enterprise. 
D)  Are backed by the full faith and credit of the government in addition to enterprise revenues. 
A)  Carry less risk than general obligation bonds. 
B)  Are no longer in existence. 
C)  Are intended to be payable from the revenues of an enterprise. 
D)  Are backed by the full faith and credit of the government in addition to enterprise revenues.

Question 7

Indicate which of the following would not be an example of an internal service fund:

Accepted Answer

A)  City Self-Insurance Fund 
B)  City Print Shop. 
C)  City Data Processing Service Center. 
D)  City Airport. 
A)  City Self-Insurance Fund 
B)  City Print Shop. 
C)  City Data Processing Service Center. 
D)  City Airport.

Question 8

When governments operate landfills as enterprise funds,which of the following is correct?

Accepted Answer

A)  GASB requires that certain postclosure costs be estimated and accrued during the period the landfills receive solid waste. 
B)  GASB requires that a portion of future estimated costs be charged as an expense and liability of the landfill using units-of-production method as waste is accepted. 
C)  The purpose of recording postclosure expenses and liabilities is to match the estimated costs with the revenues during the period of time the waste is accepted. 
D)  All of the above are correct 
A)  GASB requires that certain postclosure costs be estimated and accrued during the period the landfills receive solid waste. 
B)  GASB requires that a portion of future estimated costs be charged as an expense and liability of the landfill using units-of-production method as waste is accepted. 
C)  The purpose of recording postclosure expenses and liabilities is to match the estimated costs with the revenues during the period of time the waste is accepted. 
D)  All of the above are correct

Question 9

An enterprise fund should be used when the government has a policy to establish fees to cover the costs of providing services for an activity.

Accepted Answer

A) True 
 B)False

Question 10

An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges.

Accepted Answer

A) True 
 B)False

Question 11

The excess of assets over liabilities of proprietary funds is termed "Fund Balance"

Accepted Answer

A) True 
 B)False

Question 12

Long-term liabilities of an enterprise fund should be reported in the:

Accepted Answer

The answer of Long-term liabilities of an enterprise fund should...

Question 13

Enterprise funds are reported in the fund-basis statements only.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  Motor pool. 
B)  Garbage collection. 
C)  Print shop. 
D)  Central storeroom. 
A)  Motor pool. 
B)  Garbage collection. 
C)  Print shop. 
D)  Central storeroom.

Question 15

Internal Service Funds account for activities that produce goods or services to be provided to outside customers on a cost reimbursement basis.

Accepted Answer

A) True 
 B)False

Question 16

Describe the accounting required for risk management activities of governmental units when the government is self-insured.

Accepted Answer

When a government is self-insured (which

Question 17

Which of the following would not be true regarding internal service funds?

Accepted Answer

A)  Internal service funds use the current financial resources measurement focus and accrual basis of accounting. 
B)  Examples of internal service funds would include self-insurance funds, motor pool funds, and print shop funds. 
C)  In the basic financial statements, internal service funds are reported in the proprietary funds financial statements. 
D)  None of the above; all are true. 
A)  Internal service funds use the current financial resources measurement focus and accrual basis of accounting. 
B)  Examples of internal service funds would include self-insurance funds, motor pool funds, and print shop funds. 
C)  In the basic financial statements, internal service funds are reported in the proprietary funds financial statements. 
D)  None of the above; all are true.

Question 18

The estimated costs of closure of solid waste landfills are measured using:

Accepted Answer

A)  Estimated future costs. 
B)  Actual closure costs. 
C)  Historical costs. 
D)  Current costs. 
A)  Estimated future costs. 
B)  Actual closure costs. 
C)  Historical costs. 
D)  Current costs.

Question 19

The categories of Net assets for a proprietary fund are classified within which of the following categories?

Accepted Answer

A)  Net Assets Invested in Capital Assets Net of Related Debt, Restricted Net Assets and Unrestricted Net Assets 
B)  Spendable Net Assets and Spendable Net Assets 
C)  Committed Net Assets, Assigned Net Assets and Unassigned Net Assets 
D)  Restricted Fund balance, Committed Fund balance, Assigned Fund Balance, and Nonspendable Fund Balance 
A)  Net Assets Invested in Capital Assets Net of Related Debt, Restricted Net Assets and Unrestricted Net Assets 
B)  Spendable Net Assets and Spendable Net Assets 
C)  Committed Net Assets, Assigned Net Assets and Unassigned Net Assets 
D)  Restricted Fund balance, Committed Fund balance, Assigned Fund Balance, and Nonspendable Fund Balance

Question 20

Which of the following would be found in an Enterprise Fund Financial Statement?

Accepted Answer

A)  Expenditure - Supplies. 
B)  Reserve for Encumbrance. 
C)  Appropriations. 
D)  Depreciation Expense. 
A)  Expenditure - Supplies. 
B)  Reserve for Encumbrance. 
C)  Appropriations. 
D)  Depreciation Expense.

Which of the following are best described as proprietary funds? I.Internal Service funds II.Pension funds III.Enterprise funds

The four categories on the Statement of Cash Flows for a proprietary fund are operating,non-capital financing activities,capital and related financing activities,and investing activities.

Financial statements for proprietary funds are prepared using the current financial resource measurement focus.

All of the following are true about proprietary funds EXCEPT:

Long term liabilities of an enterprise fund are not reported in the proprietary fund statements,but are reported in government-wide statements.

Revenue bonds

Indicate which of the following would not be an example of an internal service fund:

When governments operate landfills as enterprise funds,which of the following is correct?

An enterprise fund should be used when the government has a policy to establish fees to cover the costs of providing services for an activity.

An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges.

The excess of assets over liabilities of proprietary funds is termed "Fund Balance"

Long-term liabilities of an enterprise fund should be reported in the:

Enterprise funds are reported in the fund-basis statements only.

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

Internal Service Funds account for activities that produce goods or services to be provided to outside customers on a cost reimbursement basis.

Describe the accounting required for risk management activities of governmental units when the government is self-insured.

Which of the following would not be true regarding internal service funds?

The estimated costs of closure of solid waste landfills are measured using:

The categories of Net assets for a proprietary fund are classified within which of the following categories?

Which of the following would be found in an Enterprise Fund Financial Statement?

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

Which of the following are best described as proprietary funds? I.Internal Service funds II.Pension funds III.Enterprise funds

The four categories on the Statement of Cash Flows for a proprietary fund are operating,non-capital financing activities,capital and related financing activities,and investing activities.

Financial statements for proprietary funds are prepared using the current financial resource measurement focus.

All of the following are true about proprietary funds EXCEPT:

Long term liabilities of an enterprise fund are not reported in the proprietary fund statements,but are reported in government-wide statements.

Revenue bonds

Indicate which of the following would not be an example of an internal service fund:

When governments operate landfills as enterprise funds,which of the following is correct?

An enterprise fund should be used when the government has a policy to establish fees to cover the costs of providing services for an activity.

An enterprise fund should be used when a legal requirement exists that the cost of providing services are to be recovered through fees or charges.

The excess of assets over liabilities of proprietary funds is termed "Fund Balance"

Long-term liabilities of an enterprise fund should be reported in the:

Enterprise funds are reported in the fund-basis statements only.

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

Internal Service Funds account for activities that produce goods or services to be provided to outside customers on a cost reimbursement basis.

Describe the accounting required for risk management activities of governmental units when the government is self-insured.

Which of the following would not be true regarding internal service funds?

The estimated costs of closure of solid waste landfills are measured using:

The categories of Net assets for a proprietary fund are classified within which of the following categories?

Which of the following would be found in an Enterprise Fund Financial Statement?

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