(Conceptual Problem Regarding the Use of Proprietary Funds)

Essay

(Conceptual problem regarding the use of Proprietary Funds)
State whether the following are true or false.For the false items,explain why they are false.
a.Enterprise Funds are used only when all services are provided to non-governmental entities,and Internal Service Funds are used only when all services are provided to governmental agencies that are a part of the reporting government.
b.Enterprise Funds use the economic resources measurement focus and full accrual basis of accounting only when they want to compute the costs of services;otherwise,they use the current financial resources measurement focus and modified accrual basis of accounting.
c.The primary activities of the State Office of General Services and the State Parks Department are financed from General Fund appropriations.The former department also operates a governmental motor pool and the latter operates a public swimming pool.Because their primary activities are financed from the General Fund,they may not under any circumstances account for other activities in proprietary funds.
d.An Enterprise Fund must be used whenever a government charges fees to external users for goods or services.