Select the correct answer for each of the following questions.

1. Which of the following accounts could be included in the statement of net assets of an enterprise fund?

2. Customers' meter deposits that cannot be spent for normal operating purposes would most likely be classified as restricted cash in the balance sheet of which fund?

c. \(\$ 3,000\).

d. \(\$ 10,000\).
5. At June 30, 20X7, what amount would appear on the internal service fund balance sheet as total assets?

a. \(\$ 700,000\).

b. \(\$ 710,000\).

c. \(\$ 713,000\).

d. \(\$ 708,000\).
6. Assume the mayor's office and the police department were billed \(\$ 55.000\) for data processing work during the year ended June 30, 20X7. What account should be debited in the general fund to record these billings?

a. Other Financing Use-Transfers out

b. Expenditures

c. Due to internal service fund.

d. Operating expenses.
7. Assume that the water utility, an enterprise fund, was billed \(\$ 25,000\) for data processing work during the year ended June \(30,20 \times 7\). What account should be debited in the enterprise fund to record these billings?

a. Operating expenses.

b. Other Financing Use-Transfers out.

c. Expenditures.

d. Due to internal service fund.
8. Assume that the income for Westbury's internal service fund was \(\$ 10,000\) for the year ended June 30,20X7. What net assets should be reported on the internal service fund's statement of net assets at June \(30,20 \times 7\) ?

a. \(\$ 713,000\).

b. \(\$ 610,000\).

c. \(\$ 710,000\).

d. \(\$ 613,000\).

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Reserve for Encumbrances Net Bonds Payable Assets a. No No Yes b. No Yes Yes C. Yes Yes No d. No No No