Exam 7: The Governmental Accounting Cycle

Enterprise Fund accounting and reporting is required when an activity is financed with debt secured solely by a pledge of the net revenue from fees and charges.This type of debt typically takes the form of what?

To achieve the pricing objective of an Internal Service Fund,which measurement focus and basis of accounting must be used?

Under which of the following circumstances must an Enterprise Fund be used?

A school district wants to establish a separate fund to acquire,store,and sell school supplies to individual schools within the district.What type of fund should it use?

(Computation of net investment in capital assets) The following information is taken from the financial statements of Corwin Water District 2,an Enterprise Fund.The revenue bonds were issued to construct water mains.Based on these data,compute the amount that the Fund should report on its statement of net position,as net investment in capital assets. Buildings \ 1,100,000 Water mains and equipment 5,200,000 Accumulated depreciation, capital assets 2,300,000 Current portion of revenue bonds payable 450,000 Long-term portion of revenue bonds payable 1,800,000

Which of the following accounts properly would not appear in a proprietary-type statement of net position (balance sheet)?

Which of the following accounts properly would not appear in the operating statement of a proprietary-type fund?

Where should Internal Service Funds be presented on the face of proprietary fund financial statements?

For fund-level financial reporting,a statement of cash flows is required for

Which of the following accounts would be least likely to appear in an Enterprise Fund statement of net position (balance sheet)?

In Proprietary Fund accounting,which of the following statements are true?

City Parks Department activities are accounted for in the General Fund.The Parks Department receives two invoices,one from the Lighting Enterprise Fund (EF)and one from the Printing Internal Service Fund (ISF).On receiving the invoices,which accounts should the department debit?

At December 31,2013,a Water Enterprise Fund has outstanding revenue bonds payable of $1 million,of which $40,000 is due to be paid on February 15,2014,and $50,000 is due to be paid on August 15,2014.How should it report this liability in its fund statement of net position as of December 31,2013?

You are computing an hourly billing rate for the Print Shop Internal Service Fund.Which of the following items should become part of the rate?

Proprietary funds sometimes report special assessment revenues.What are special assessments?

Which of the following activities is most likely to be accounted for in an Internal Service Fund?

A city accounts for its hospital in an Enterprise Fund.An individual brings a malpractice suit against the hospital in 2013.City lawyers are concerned about losing the case if it goes to court,but estimate that it is probable they can settle it out of court for $50,000.In any event,the city does not expect any cash outflows on the claim for several years.How should the Enterprise Fund report this item in its statements for the year ended December 31,2013?

In what way do Internal Service Funds differ from Enterprise Funds?

A city's General Fund makes a contribution of $800,000 to an Internal Service Fund (ISF)so that the ISF can operate.How should the ISF report the contribution?

Many Utility Enterprise Fund activities charge tap fees to their customers.Which of the following is most descriptive of those fees?