Question 26 (1 point)

Which of the following illustrates the appropriate basis of accounting for enterprise and internal service funds?

	Enterprise Funds	Internal Service Funds
A.	Modified Accrual	Modified Accrual
B.	Modified Accrual	Accrual
C.	Accrual	Modified Accrual
D.	Accrual	Accrual

Question 26 options:

	Choice A.
	Choice B.
	Choice C.
	Choice D.

Question 27 (1 point)

Goods and services provided by internal service funds to other departments of the government are typically priced to:

Question 27 options:

	Cover variable costs only.
	Cover full costs (both fixed and variable).
	Cover full costs, plus an additional charge to capital maintenance and anticipated expansion needs.
	Cover full costs, plus an additional charge to ensure a reasonable profit.

Question 28 (1 point)

When a new internal service fund is established with a transfer of funds (not to be repaid), which account would be credited in the internal service fund?

Question 28 options:

	Cash.
	Interfund Transfer In.
	Interfund Transfer Out.
	Estimated Revenues.

Question 29 (1 point)

When utility customers are billed during the year, the enterprise fund journal entry will include which of the following?

Question 29 options:

	A debit to Sales of Water.
	A debit to Cash - Restricted.
	A debit to Customer Accounts Receivable.
	A debit to Billings to Customers.

Question 30 (1 point)

When a new utility customer submits a deposit, the enterprise fund journal entry will include which of the following?

Question 30 options:

	A credit to Customer Deposits.
	A debit to Customer Deposits.
	A debit to Sales of Water.
	A credit to Sales of Water.