1. You are the independent CPA for a mediumsized city. The city manager asks your guidance as to whether, according to generally accepted accounting principles, the municipal golf course should be accounted for in an enterprise fund. What would be your response?
2. How would you compare the accounting for enterprise funds with that of (a) businesses and (b) governmental funds? Summarize the reasons both for and against accounting for enterprise funds differently than governmental funds.
3. Although proprietary fund accounting is similar to business accounting, there are considerable differences in standards pertaining to the statement of cash flows. What are the main differences?
4. A government accounts for a municipal landfill in an enterprise fund. How will it determine how much to charge as an expense (and add to a liability) each year that the landfill is in use? Suppose instead that it accounts for the landfill in a governmental fund. What will be the amount charged as an expenditure?
5. For what types of activities are internal service funds used to account? Provide several examples. Is a government required to account for the activities you cite in an internal service fund, or may it account for them instead in its general fund?

1. Distinguish between a defined benefit plan and a defined contribution plan. Why does a defined benefit plan present far more complex accounting issues than a defined contribution plan?
2. How should an employer determine the amount to report on its governmentwide statements as its pension liability?
3. What should it use as its discount rate in determining its pension obligation?
4. How should it determine its expense in full accrual statements?
5. What is a costsharing plan? What does an employer who is a member of a costsharing plan have to report as a pension obligation?

1. What typically are the two main adjustments required to convert the government fund balance sheet to the government-wide statement of net assets?
2. What typically are the main adjustments relating to capital assets and long-term obligations required to convert the government funds statement of revenues and expenditures to the government-wide statement of activities?
3. Per GASB standards, what is the key criterion as to whether a government should be included as acomponent unitin the reporting entity of another government?
4. How doesdiscrete presentationdiffer fromblending? When is each appropriate?