Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

State whether the following are true or false. For the false items, explain why they are false. a. Enterprise Funds are used only when all

State whether the following are true or false. For the false items, explain why they are false.

a. Enterprise Funds are used only when all services are provided to non-governmental entities, and Internal Service Funds are used only when all services are provided to governmental agencies that are a part of the reporting government.

b. Enterprise Funds use the economic resources measurement focus and full accrual basis of accounting only when they want to compute the costs of services; otherwise, they use the current financial resources measurement focus and modified accrual basis of accounting.

c. The primary activities of the State Office of General Services and the State Parks Department are financed from General Fund appropriations. The former department also operates a governmental motor pool and the latter operates a public swimming pool. Because their primary activities are financed from the General Fund, they may not under any circumstances account for other activities in proprietary funds.

d. An Enterprise Fund must be used whenever a government charges fees to external users for goods or services.


Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of IT Audit For Operational Auditors

Authors: Timothy McWilliams

1st Edition

1634541332, 978-1634541336

More Books

Students also viewed these Accounting questions

Question

2, What kin

Answered: 1 week ago