Question 1

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

Accepted Answer

A)  Internal service funds use the 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 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 2

An internal service fund provided services to a General Fund department. At the time of billing, the credit entry in the internal service fund would be:

Accepted Answer

A)  Other Financing Sources-Transfers In 
B)  Expenditures 
C)  Operating Revenues-Charges for Services 
D)  Due from General Fund 
A)  Other Financing Sources-Transfers In 
B)  Expenditures 
C)  Operating Revenues-Charges for Services 
D)  Due from General Fund

Question 3

Proprietary Funds use the modified accrual basis of accounting

Accepted Answer

A) True 
 B)False

Question 4

Governmental units use which fund type to account for services provided to the general public on a user-charge basis?.

Accepted Answer

A)  General fund 
B)  Enterprise fund 
C)  Permanent fund 
D)  Internal service fund 
A)  General fund 
B)  Enterprise fund 
C)  Permanent fund 
D)  Internal service fund

Question 5

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 6

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

Question 7

Financial statements prepared for proprietary funds include the Statement of Net Assets, Statement of Revenues, Expenses and Changes in Fund Net Assets and the Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 8

Proprietary funds are required to have a Statement of Revenues, Expenses and Change in Net Assets, a Statement of Net Assets and a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true regarding internal service funds?

Accepted Answer

A)  Internal service funds provide services primarily to external users on a user charge basis 
B)  Internal service funds normally record the annual budget in the accounts 
C)  Internal service funds use full accrual accounting 
D)  Internal service funds' capital assets are not accounted for in the accounts 
A)  Internal service funds provide services primarily to external users on a user charge basis 
B)  Internal service funds normally record the annual budget in the accounts 
C)  Internal service funds use full accrual accounting 
D)  Internal service funds' capital assets are not accounted for in the accounts

Question 10

Which of the funds listed below would include capital assets in its Statement of Net Assets?

Accepted Answer

A)  Internal Service 
B)  General 
C)  Special Revenue 
D)  None of the above; no funds in governmental accounting have capital asset accounts 
A)  Internal Service 
B)  General 
C)  Special Revenue 
D)  None of the above; no funds in governmental accounting have capital asset accounts

Question 11

The Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances are required for Proprietary funds.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Enterprise funds are a(n) ______ activity, whereas Internal Service funds are typically a(n) ______ activity

Accepted Answer

A)  Business-type; governmental 
B)  Governmental; business-type 
C)  Constrained; unrestricted 
D)  Unrestricted; constrained 
A)  Business-type; governmental 
B)  Governmental; business-type 
C)  Constrained; unrestricted 
D)  Unrestricted; constrained

Question 14

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 15

Impact fees charged to real estate developers are recorded in an enterprise fund as capital contributions, a nominal account that will increase Net Assets, but is reported separately in the statement of Revenues, Expenses and Changes in Fund Net Assets.

Accepted Answer

A) True 
 B)False

Question 16

The users of goods or services provided by proprietary funds are charged based on their consumption of the goods or services.

Accepted Answer

A) True 
 B)False

Question 17

Proprietary funds are:

Accepted Answer

A)  Based on the accrual method of accounting 
B)  Based on the modified accrual method of accounting 
C)  Based on a combination of the accrual and modified accrual method of accounting 
D)  Funds that use "expenditures" instead of "expenses" 
A)  Based on the accrual method of accounting 
B)  Based on the modified accrual method of accounting 
C)  Based on a combination of the accrual and modified accrual method of accounting 
D)  Funds that use "expenditures" instead of "expenses"

Question 18

According to GASB 34, restricted net assets include those that are the results of constraints imposed by law through constitutional provisions or enabling legislation.

Accepted Answer

A) True 
 B)False

Question 19

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 20

GASB requires the indirect method to determine cash flows.

Accepted Answer

A) True 
 B)False

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

An internal service fund provided services to a General Fund department. At the time of billing, the credit entry in the internal service fund would be:

Proprietary Funds use the modified accrual basis of accounting

Governmental units use which fund type to account for services provided to the general public on a user-charge basis?.

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

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

Financial statements prepared for proprietary funds include the Statement of Net Assets, Statement of Revenues, Expenses and Changes in Fund Net Assets and the Statement of Cash Flows.

Proprietary funds are required to have a Statement of Revenues, Expenses and Change in Net Assets, a Statement of Net Assets and a Statement of Cash Flows.

Which of the following is true regarding internal service funds?

Which of the funds listed below would include capital assets in its Statement of Net Assets?

The Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances are required for Proprietary funds.

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

Enterprise funds are a(n) activity, whereas Internal Service funds are typically a(n) activity

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.

Impact fees charged to real estate developers are recorded in an enterprise fund as capital contributions, a nominal account that will increase Net Assets, but is reported separately in the statement of Revenues, Expenses and Changes in Fund Net Assets.

The users of goods or services provided by proprietary funds are charged based on their consumption of the goods or services.

Proprietary funds are:

According to GASB 34, restricted net assets include those that are the results of constraints imposed by law through constitutional provisions or enabling legislation.

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

GASB requires the indirect method to determine cash flows.

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 Trust Funds

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

Filters

Exam 6: Proprietary Funds

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

An internal service fund provided services to a General Fund department. At the time of billing, the credit entry in the internal service fund would be:

Proprietary Funds use the modified accrual basis of accounting

Governmental units use which fund type to account for services provided to the general public on a user-charge basis?.

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

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

Financial statements prepared for proprietary funds include the Statement of Net Assets, Statement of Revenues, Expenses and Changes in Fund Net Assets and the Statement of Cash Flows.

Proprietary funds are required to have a Statement of Revenues, Expenses and Change in Net Assets, a Statement of Net Assets and a Statement of Cash Flows.

Which of the following is true regarding internal service funds?

Which of the funds listed below would include capital assets in its Statement of Net Assets?

The Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances are required for Proprietary funds.

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

Enterprise funds are a(n) ______ activity, whereas Internal Service funds are typically a(n) ______ activity

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.

Impact fees charged to real estate developers are recorded in an enterprise fund as capital contributions, a nominal account that will increase Net Assets, but is reported separately in the statement of Revenues, Expenses and Changes in Fund Net Assets.

The users of goods or services provided by proprietary funds are charged based on their consumption of the goods or services.

Proprietary funds are:

According to GASB 34, restricted net assets include those that are the results of constraints imposed by law through constitutional provisions or enabling legislation.

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

GASB requires the indirect method to determine cash flows.

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 Trust Funds

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

Filters

Enterprise funds are a(n) activity, whereas Internal Service funds are typically a(n) activity