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In order to get a good rating, please explain how you arrived at each answer. Thank you. EX. 9-1 Select the best answer. What basis
In order to get a good rating, please explain how you arrived at each answer. Thank you.
EX. 9-1
Select the best answer.
- What basis of accounting do enterprise and internal service funds use?
Enterprise Internal Service
- Modified accrual Modified accrual
- Modified accrual Full accrual
- Full accrual Modified accrual
- Full accrual Full accrual
- Which of the following is not a GASB-required statement for proprietary funds?
- Statement of net position
- Statement of revenues, expenses, and changes in fund net position
- Statement of cash flows
- Statement of changes in fund net position
- A government need not necessarily account for an activity in an enterprise fund even though it
- Charges fees for the activity and those fees are material in amount
- Finances the activity solely with revenue debt
- Is required by law or policy to recover the cost of the activity by fees
- Opts to establish pricing policies to recover its costs, including capital costs
- Tap fees, to the extent that they do not exceed the cost of hooking customers into the utility, should be accounted for as
- Capital contributions
- Ordinary revenues
- A combination of capital contributions and ordinary revenues
- Extraordinary items
- Tap fees, a portion of which, exceed the cost of hooking customers into the utility, should be accounted for as
- Capital contributions
- Ordinary revenues
- A combination of capital contributions and ordinary revenues
- Extraordinary items
- Landfill closure and postclosure costs should be recognized as expenses
- In the periods incurred
- In the period that the landfill is closed
- In the periods that the landfill is in operation
- In the period in which the landfill is opened
- Which of the following would not be included in the computation of the amount to be recognized as a landfill closure expense?
- The total estimated closure costs
- The capacity of the landfill
- The proportion of capacity used in prior years
- An appropriate discount rate
- A city maintains a staff of internal auditors. It may properly account for its internal audit costs in an internal service fund only if
- It is required to do so by state or city statutes or regulations
- The internal audit activity is carried out in a discrete organizational unit
- It charges a fee to the city departments for which it provides service
- A GASB pronouncement specifies that internal audit activity is eligible for internal service fund accounting
- A government accounts for its self-insurance activities in an internal service fund. Per GASB guidelines, the premiums charged to other funds
- Must, in total and over time, cover the actual losses incurred by the fund
- Cannot include a provision for catastrophic losses
- Must be competitive with what an independent insurer would charge
- Must be at least as great as the losses incurred each year
- If a government accounts for self-insurance activities in its general fund, then premiums charged in excess of actual claims should be accounted for as
- Ordinary revenues
- An offset against claims expenditures
- An increase in claims reserves
- A nonreciprocal transfer-in
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