1. Charges for services are a major source of revenue for:
a. A debt service fund
b. A trust fund
c. An enterprise fund
d. A capital projects fund
2. A city provides initial financing for its enterprise fund with the stipulation that the amount advanced be returned to the general fund within five years. The general fund expects prompt repayment. In recording the payment to the enterprise fund, the general fund should:
a. Debit the contribution to enterprise fund account
b. Debit the expenditures account
c. Debit a reserve for advance to enterprise fund account
d. Debit a due from enterprise fund account
3. If enterprise fund assets are financed through general obligation bonds, rather than revenue bonds, the debt:
a. Is not an enterprise fund liability
b. Must be serviced through a debt service fund
c. Is an enterprise fund liability if enterprise fund revenues are intended to service the debt
d. Is reported both as a long-term fund liability and a general obligation liability
4. An internal service fund would most likely be created to provide:
a. Debt service
b. Centralized purchasing
c. Perpetual care of cemeteries
d. Tax collection and recording services
5. Enterprise funds should be used in accounting for governmental activities that involve:
a. Providing goods and services to the public
b. Providing goods and services to other departments of the government
c. Providing goods and services to the public if a substantial amount of revenue is derived from user charges
d. Collection of money from the public