Question
Which of the following would not be reported in a proprietary fund? Select one: a. Bonds payable b. Capital assets c. Inventory d. Other financing
Which of the following would not be reported in a proprietary fund?
Select one:
a. Bonds payable
b. Capital assets
c. Inventory
d. Other financing sourcelong-term debt issued
e. Revenues
What is the measurement focus and basis of accounting used for proprietary funds?
Select one:
a. Current financial resources measurement focus and modified accrual basis of accounting
b. Economic resources measurement focus and the accrual basis of accounting
c. Current financial resources measurement focus and the accrual basis of accounting
d. Economic resources measurement focus and the modified accrual basis of accounting
Governmental GAAP requires Internal Service Funds to be used in which of the following situations?
Select one:
a. An activity issues debt that is secured solely by a pledge of net revenues from fees or charges of the activity.
b. Laws or regulations require the activity to recover its costs of providing services including capital costs with user fees and charges.
c. An activity establishes user fees and charges based on pricing policies designed to recover all costs, including capital costs.
d. All of the above.
e. None of the above.
The city of Bethville establishes an Internal Service Fund to account for printing services provided to the various departments of the government. Police chief, Winston Watson, authorizes the payment of $2,000 for printing services provided by the Printing Services Internal Services Fund. The accounting department makes the payment. What entry should be reported in the Printing Services Internal Service Fund for receipt of the payment?
Select one:
a.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 | |
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 |
b.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 | |
Transfer in from General Fund . . . . . . . . . . . . . . . . . . . . . | 2,000 |
c.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 | |
Transfer in from Enterprise Fund. . . . . . . . . . . . . . . . . . . | 2,000 |
d.
Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 | |
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 |
The city of Steveville is preparing its annual financial statement. A new employee, Victoria Watson, is responsible for preparing the basic financial statements for the citys three Internal Service Funds. Where should Victoria report the Internal Service Fund activity in the combined financial statements?
Select one:
a. Any major Internal Service Funds should be reported in separate columns in the proprietary fund financial statements and nonmajor Internal Service Funds should be reported in a column with nonmajor Enterprise Funds.
b. Internal Service Funds should be reported in their own separate set of financial statements that shows a column for each major Internal Service Fund with the remainder of Internal Service Funds aggregated in a single column.
c. Internal Service Funds should be aggregated in a single column to the right of Enterprise Funds in the proprietary fund financial statements.
d. Internal Service Funds are not reported in the fund financial statements, but rather only reported as part of government-wide reporting.
The city of Trawville has a Water Enterprise Fund that provides potable water for use by the residents and businesses of the city. The Water Enterprise Fund also provides potable water to other city departments. The Water Enterprise Fund bills the General Fund ($1,800) and the Golf Course Enterprise Fund ($1,600) for their water use during the most recent month. What journal entry should be recorded in the Water Enterprise Fund?
Select one:
a.
Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800 | |
Due from Golf Course Enterprise Fund . . . . . . . . . . . . . . . . . | 1,600 | |
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,400 |
b.
Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800 | |
Due from Golf Course Enterprise Fund . . . . . . . . . . . . . . . . . . | 1,600 | |
Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,400 |
c.
Due from General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800 | |
Due from Golf Course Enterprise Fund . . . . . . . . . . . . . . . . . . . . | 1,600 | |
Transfer in from General Fund . . . . . . . . . . . . . . . . . . . . . . . . | 1,800 | |
Transfer in from Golf Course Enterprise Fund . . . . . . . . . . . | 1,600 |
d.
Expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,400 | |
Due to General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800 | |
Due to Golf Course Enterprise Fund. . . . . . . . . . . . . . . . . . | 1,600 |
The city of Grigsbys Water Enterprise Fund enters into a lease agreement with Nguyen Leasing Company for new computer hardware. The present value of lease payments over the life of the four-year lease is $48,000. What journal entry would Grigsby accounting personnel make in the Water Enterprise Fund at the inception of the lease?
Select one:
a.
computer expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 48,000 | |
Lease payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 48,000 |
b.
Intangible assetlease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 48,000 | |
Lease payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 48,000 |
c.
Expenditurescapital outlay . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 48,000 | |
Other financing sourcelong-term lease . . . . . . . . . . . . . . | 48,000 |
d.
Capital assetcomputer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 48,000 | |
Other financing sourcelong-term lease . . . . . . . . . . . . . . | 48,000 |
Which of the following items is reported in a governments Enterprise Fund financial statements, but would not be reported in a publicly traded companys financial statements?
Select one:
a. Other comprehensive income
b. Notes payable
c. Deferred inflows of resources
d. Investments
Both Internal Service Funds and Enterprise Funds use flexible budgets to control their activities but dont incorporate these budgets into their accounts because:
Select one:
a. Both fund types have a monopoly on the services they provide.
b. Encumbrance accounting is not a good source of control.
c. Flexible budgets change based on volume and are difficult to record in the accounts.
d. Both fund types use marketplace controls instead.
The city of Cool reports a Public Transportation Enterprise Fund. In its statement of net position as of December 31, 2018, the Fund reports, among other things, cash, and investments, depreciable capital assets and nondepreciable capital assets. Based on the information provided, which components of net position should the Enterprise Fund report?
Select one:
a. Net investment in capital assets and unrestricted
b. Restricted, unrestricted, and net investment in capital assets
c. Nonspendable and committed
d. Net investment in capital assets and assigned
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