Question 1

Proprietary funds:

Accepted Answer

A)  Are required to present a reconciliation between the Statement of Revenues, Expenses, and Changes in Fund Net Assets and the Cash Flow Statement. 
B)  Are required to present budget-actual statements in the fund statements. 
C)  Are not required to disclose contributions of capital assets on the Cash Flow Statement. 
D)  Are required to present a Statement of Revenues and Expenses and Balance sheet. 
A)  Are required to present a reconciliation between the Statement of Revenues, Expenses, and Changes in Fund Net Assets and the Cash Flow Statement. 
B)  Are required to present budget-actual statements in the fund statements. 
C)  Are not required to disclose contributions of capital assets on the Cash Flow Statement. 
D)  Are required to present a Statement of Revenues and Expenses and Balance sheet.

Question 2

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

Accepted Answer

Since the basic financial statements inc

Question 3

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 4

Financial statements for proprietary funds are similar in many respects to those of business organization.

Accepted Answer

A) True 
 B)False

Question 5

Under GASB 34,enterprise funds must be used:

Accepted Answer

A)  When debt is backed solely by fees and charges. 
B)  When a legal requirement exists that the cost of providing services for activity, including capital costs, be recovered through fees or charges. 
C)  When a government has a policy to establish fees and charges to cover the cost of providing services for an activity. 
D)  All of the above. 
A)  When debt is backed solely by fees and charges. 
B)  When a legal requirement exists that the cost of providing services for activity, including capital costs, be recovered through fees or charges. 
C)  When a government has a policy to establish fees and charges to cover the cost of providing services for an activity. 
D)  All of the above.

Question 6

Which financial statements are required for a proprietary fund?

Accepted Answer

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

Question 7

Fund-basis 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

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is false regarding proprietary funds financial statements?

Accepted Answer

A)  Major internal service funds are separately reported. 
B)  Discretely presented component units that are business-type in nature are not reported; those units would be in the government-wide statements only. 
C)  A classified approach must be used when preparing the Statement of Net Assets where current assets are displayed separately from long-term assets and current liabilities are displayed separately from long-term liabilities. 
D)  With respect to the Statement of Net Assets, the net assets are displayed in the same three categories as in the government-wide statements. 
A)  Major internal service funds are separately reported. 
B)  Discretely presented component units that are business-type in nature are not reported; those units would be in the government-wide statements only. 
C)  A classified approach must be used when preparing the Statement of Net Assets where current assets are displayed separately from long-term assets and current liabilities are displayed separately from long-term liabilities. 
D)  With respect to the Statement of Net Assets, the net assets are displayed in the same three categories as in the government-wide statements.

Question 12

Internal Service Funds are be used:

Accepted Answer

A)  When debt is backed solely by fees and charges. 
B)  When activities that produce goods or services that are provided to other departments or other governmental units on a cost-reimbursement basis. 
C)  When a legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. 
D)  When governments account for services provided to general public on a user-charge basis. 
A)  When debt is backed solely by fees and charges. 
B)  When activities that produce goods or services that are provided to other departments or other governmental units on a cost-reimbursement basis. 
C)  When a legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. 
D)  When governments account for services provided to general public on a user-charge basis.

Question 13

Which of the following is not correct regarding the GASB Cash Flow Statement?

Accepted Answer

A)  Reconciliation of income and cash flows from operations starts with operating income. 
B)  Fixed Assets transactions are reported in the Capital Related Financing Section. 
C)  Cash received from Interest and Dividend Income is recorded in the Operating Section. 
D)  All of the above are correct. 
A)  Reconciliation of income and cash flows from operations starts with operating income. 
B)  Fixed Assets transactions are reported in the Capital Related Financing Section. 
C)  Cash received from Interest and Dividend Income is recorded in the Operating Section. 
D)  All of the above are correct.

Question 14

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 15

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.

Question 16

All of the following are types of debt issued to finance state and local governmental enterprises except:

Accepted Answer

A)  Revenue bonds. 
B)  General obligation bonds. 
C)  Treasury bonds. 
D)  None of the above. 
A)  Revenue bonds. 
B)  General obligation bonds. 
C)  Treasury bonds. 
D)  None of the above.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The Water Utility (an enterprise fund)has just sent out a purchase order to a vendor for some new equipment.Which of the following would be included in the journal entry to record this event?

Accepted Answer

A)  A credit to Accounts Payable. 
B)  A debit to Encumbrances. 
C)  A debit to Expenditures. 
D)  None of the above. 
A)  A credit to Accounts Payable. 
B)  A debit to Encumbrances. 
C)  A debit to Expenditures. 
D)  None of the above.

Question 20

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

Proprietary funds:

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

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).

Financial statements for proprietary funds are similar in many respects to those of business organization.

Under GASB 34,enterprise funds must be used:

Which financial statements are required for a proprietary fund?

Fund-basis 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.

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

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

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

Which of the following is false regarding proprietary funds financial statements?

Internal Service Funds are be used:

Which of the following is not correct regarding the GASB Cash Flow Statement?

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

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

All of the following are types of debt issued to finance state and local governmental enterprises except:

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

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

The Water Utility (an enterprise fund)has just sent out a purchase order to a vendor for some new equipment.Which of the following would be included in the journal entry to record this event?

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?

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

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

Proprietary funds:

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

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).

Financial statements for proprietary funds are similar in many respects to those of business organization.

Under GASB 34,enterprise funds must be used:

Which financial statements are required for a proprietary fund?

Fund-basis 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.

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

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

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

Which of the following is false regarding proprietary funds financial statements?

Internal Service Funds are be used:

Which of the following is not correct regarding the GASB Cash Flow Statement?

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

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

All of the following are types of debt issued to finance state and local governmental enterprises except:

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

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

The Water Utility (an enterprise fund)has just sent out a purchase order to a vendor for some new equipment.Which of the following would be included in the journal entry to record this event?

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?

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters