Question
Hi I need help with these Multiple choice questions During 2017, the Gateway City government recorded a $15,000 transfer from the General Fund to an
Hi I need help with these Multiple choice questions
During 2017, the Gateway City government recorded a $15,000 transfer from the General Fund to an internal service fund; a $25,000 transfer from the General Fund to an enterprise fund; a $10,000 transfer from an enterprise fund to an internal service fund, and a $5,000 transfer from an enterprise fund to the General Fund. In the Business-type. Activities column of the government-wide financial statements, Gateway City should report
- A. Net transfers out of $5,000.
- Net transfers in of $10,000.
- Net Transfers in of $25,000.
- Net Transfers in of $35,000.
Which of the following events would generally be classified as nonoperating on an enterprise fund's statement of revenues, expenses, and changes in net position?
- Billing other funds of the same government for services.
- Loss on the sale of a piece of equipment.
- Depreciation expense.
- Administrative expense.
In reviewing the accounting records of the Transportation Services Fund, an internal service fund of Douglas City, you notice that the fund uses budgetary accounts. This is most likely because
- The administrators of the fund prefer to do abudget to use in managing the fund.
- GASB requires the use of budgetary accounts in internal service funds.
- The city council must legally approve the fund's budget.
- The accountants for the fund are unfamiliar with proper accounting procedures for a proprietary fund.
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