1.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.

2. 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