1. The Utility Enterprise Fund is in Year 2 of a three year construction project that is projected to cost $3,000,000. The fund incurred $300,000 of costs in Year 1 and $1,800,000 in Year 2. The fund will report

Select one:

a. expenses of $300,000 in Year 1 and $1,800,000 in Year 2.

b. total construction in progress (an asset) in Year 2 of $1,800,000.

c. total construction in progress (an asset) in Year 2 of $2,100,000.

d. expenditures of $300,000 in Year 1 and $1,800,000 in Year 2.

e. None of the above.

2. Generally accepted accounting principles require an Enterprise Fund's statement of net assets to be presented on

Select one:

a. the net asset format only.

b. the balance sheet format only.

c. either the net asset or balance sheet format.

d. neither the net asset or balance sheet format.

3. Which of the following statements is true about transfers into an Enterprise Fund?

Select one:

a. They are always reported as capital and related financing activities in the statement of cash flows.

b. They are always reported after operating income in the statement of revenues, expenses, and changes in net assets.

c. They do not affect changes in net assets of the proprietary fund.

d. They are always reported as noncapital financing activities in the statement of cash flows.

4. A long-term liability for compensated absences would typically be included in which component of net assets of an Enterprise Fund?

Select one:

a. Unrestricted net assets

b. Restricted net assets

c. Invested in capital assets net of related debt

d. Net assets would not be affected

6. A Proprietary Fund statement of cash flows reports cash flows from operating activities

Select one:

a. Using the direct methoD.

b. Using the indirect method

c. Equal to operating income plus depreciation-other adjustments are reported in the noncapital financing activities section

d. Using either the direct or the indirect method of presentation.

6. Which of the following would be included in determining operating income of an Enterprise Fund?

Select one:

a. Transfers

b. Depreciation expense

c. Interest expense

d. Both items b and c