Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

In a proprietary fund Statement of Net Assets, which of the following is not true?

Accepted Answer

A)  Net assets are reported only by restricted and unrestricted categories 
B)  GASB requires a classified format, where current assets, noncurrent assets, current liabilities and noncurrent liabilities 
C)  Net assets that are restricted are presented separately 
D)  Net assets may be unrestricted 
A)  Net assets are reported only by restricted and unrestricted categories 
B)  GASB requires a classified format, where current assets, noncurrent assets, current liabilities and noncurrent liabilities 
C)  Net assets that are restricted are presented separately 
D)  Net assets may be unrestricted

Question 4

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

Accepted Answer

A)  Other Financing Sources-Transfers Out 
B)  Expenditures 
C)  Operating Revenues-Charges for Services 
D)  Expenses 
A)  Other Financing Sources-Transfers Out 
B)  Expenditures 
C)  Operating Revenues-Charges for Services 
D)  Expenses

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is false regarding restricted net assets?

Accepted Answer

A)  They are presented separately 
B)  May be the result of constraints imposed by creditors, grantors, contributors or laws or regulations of other governments 
C)  They can be imposed by law through constitutional provisions or enabling legislation 
D)  None, all of the above are true 
A)  They are presented separately 
B)  May be the result of constraints imposed by creditors, grantors, contributors or laws or regulations of other governments 
C)  They can be imposed by law through constitutional provisions or enabling legislation 
D)  None, all of the above are true

Question 7

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)  Balance Sheet; Statement of revenues, expenditures and changes in fund balances; Statement of changes in fiduciary net assets 
D)  Statement of changes in Fund Balance; Balance Sheet; Statement of cash flows 
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)  Balance Sheet; Statement of revenues, expenditures and changes in fund balances; Statement of changes in fiduciary net assets 
D)  Statement of changes in Fund Balance; Balance Sheet; Statement of cash flows

Question 8

A portion of the estimated cost of closure of solid waste landfills should be charged as an expense and a liability of the landfill operation each year on a:.

Accepted Answer

A)  Actual cost method 
B)  Units-of-production method 
C)  Estimated cost method 
D)  None of the above 
A)  Actual cost method 
B)  Units-of-production method 
C)  Estimated cost method 
D)  None of the above

Question 9

In the Statement of Net Assets for proprietary funds, GASB requires a classified format where current assets, noncurrent assets, current liabilities and noncurrent liabilities are presented:.

Accepted Answer

A)  Separately 
B)  Combined 
C)  Intermingled 
D)  Not at all 
A)  Separately 
B)  Combined 
C)  Intermingled 
D)  Not at all

Question 10

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 called "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 called "Fund Balance."

Question 11

Internal service funds account for services provided to citizens and others on a user charge basis

Accepted Answer

A) True 
 B)False

Question 12

A city government has decided to build and operate a convention center. Identify what factors should be considered in deciding whether to account for the convention center as an Enterprise Fund or as part of general governmental activities?

Accepted Answer

In determining whether to account for an

Question 13

Which of the following would be an example of an Enterprise fund?

Accepted Answer

A)  Water Utility fund 
B)  Runway construction fund 
C)  Pension Fund 
D)  Teacher Fund 
A)  Water Utility fund 
B)  Runway construction fund 
C)  Pension Fund 
D)  Teacher Fund

Question 14

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 15

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

Accepted Answer

The GASB requires four categories be use

Question 16

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

Accepted Answer

A)  Electric and Water Utilities 
B)  Janitorial Services 
C)  Sports Stadiums 
D)  Public Housing 
A)  Electric and Water Utilities 
B)  Janitorial Services 
C)  Sports Stadiums 
D)  Public Housing

Question 17

The General Fund of a city made a permanent transfer of $100,000 to an enterprise fund. At year-end, the balance sheet accounts that would reflect the $100,000 in the enterprise fund would be cash and:

Accepted Answer

A)  Contributed Capital 
B)  Equity Transfer In 
C)  Net Assets 
D)  Other Financing Sources 
A)  Contributed Capital 
B)  Equity Transfer In 
C)  Net Assets 
D)  Other Financing Sources

Question 18

What statement is not required for proprietary funds?

Accepted Answer

A)  Statement of Net Assets 
B)  Statement of Revenues, Expenditures and Changes in Fund Balance 
C)  Statement of Revenues, Expenses and Changes in Fund Net Assets 
D)  Statement of Cash Flows 
A)  Statement of Net Assets 
B)  Statement of Revenues, Expenditures and Changes in Fund Balance 
C)  Statement of Revenues, Expenses and Changes in Fund Net Assets 
D)  Statement of Cash Flows

Question 19

Which of the following statements is NOT required for proprietary funds?

Accepted Answer

A)  Statement of Net Assets 
B)  Statement of Revenues, Expenses and Changes in Fund Net Assets 
C)  Budgetary Comparison Schedule 
D)  Statement of Cash Flows 
A)  Statement of Net Assets 
B)  Statement of Revenues, Expenses and Changes in Fund Net Assets 
C)  Budgetary Comparison Schedule 
D)  Statement of Cash Flows

Question 20

The County of Woodale operates a landfill as an enterprise fund. The closure and postclosure care costs are estimated to be $24 million. It is estimated that the capacity of the landfill is 8 million tons of waste and that waste will be accepted for 4 years. During 2009, 2.2 million tons of waste was accepted. The charge for closure and postclosure care costs for 2009 would be:

Accepted Answer

A)  $2 million 
B)  $2.2 million 
C)  $6 million 
D)  $6.6 million 
A)  $2 million 
B)  $2.2 million 
C)  $6 million 
D)  $6.6 million

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

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

In a proprietary fund Statement of Net Assets, which of the following is not true?

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

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

Which of the following is false regarding restricted net assets?

Which financial statements are required for proprietary funds?

A portion of the estimated cost of closure of solid waste landfills should be charged as an expense and a liability of the landfill operation each year on a:.

In the Statement of Net Assets for proprietary funds, GASB requires a classified format where current assets, noncurrent assets, current liabilities and noncurrent liabilities are presented:.

Which of the following is not true regarding enterprise funds?

Internal service funds account for services provided to citizens and others on a user charge basis

A city government has decided to build and operate a convention center. Identify what factors should be considered in deciding whether to account for the convention center as an Enterprise Fund or as part of general governmental activities?

Which of the following would be an example of an Enterprise fund?

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

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

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

The General Fund of a city made a permanent transfer of $100,000 to an enterprise fund. At year-end, the balance sheet accounts that would reflect the $100,000 in the enterprise fund would be cash and:

What statement is not required for proprietary funds?

Which of the following statements is NOT required for proprietary funds?

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

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

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

In a proprietary fund Statement of Net Assets, which of the following is not true?

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

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

Which of the following is false regarding restricted net assets?

Which financial statements are required for proprietary funds?

A portion of the estimated cost of closure of solid waste landfills should be charged as an expense and a liability of the landfill operation each year on a:.

In the Statement of Net Assets for proprietary funds, GASB requires a classified format where current assets, noncurrent assets, current liabilities and noncurrent liabilities are presented:.

Which of the following is not true regarding enterprise funds?

Internal service funds account for services provided to citizens and others on a user charge basis

A city government has decided to build and operate a convention center. Identify what factors should be considered in deciding whether to account for the convention center as an Enterprise Fund or as part of general governmental activities?

Which of the following would be an example of an Enterprise fund?

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

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

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

The General Fund of a city made a permanent transfer of $100,000 to an enterprise fund. At year-end, the balance sheet accounts that would reflect the $100,000 in the enterprise fund would be cash and:

What statement is not required for proprietary funds?

Which of the following statements is NOT required for proprietary funds?

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