1. Whichofthefollowingstatementsisincorrectconcerningagovernmentalentitysstatement of cash flows? a. Cash flows from capital financing activities and cash flows from noncapital financing activities are reported separately. b. The statement format is the same as that of a business enterprises statement of cash flows. c. Cashflowsfromoperatingactivitiesmaynotbereportedusingtheindirectmethod. d. The cash flows statement is not prepared by the general fund.

2. Whichofthefollowingfundsofagovernmentalunitrecognizesrevenuesintheaccounting period only when they are both available and measurable? General Fund a. Yes b. No c. Yes d.No Enterprise Fund No Yes Yes No

3. If an internal service fund is intended to operate on a cost-reimbursement basis, then user charges should a. coverthefullcosts,bothdirectandindirect,ofoperatingthefund. b. cover the full costs of operating the fund and provide for future expansion and replace- ment of capital assets. c. coverataminimumthedirectcostsofoperatingthefund. d. do all of the above.

4. The billings for transportation services provided to other governmental units are recorded by the internal service fund as a. otherfinancingsources. b. intergovernmental transfers. c. transportationappropriations. d. operating revenues.