ACG4501 Chapter 07 Quiz Flashcards
A developer agreed to pay for water and wastewater infrastructure associated with one of his development projects. Once the work is completed and the new lines are connected, they will become part of the city’s Enterprise Fund capital assets. The entry that should be recorded by the Enterprise Fund would be
A) A DEBIT to capital assets and a CREDIT to invested in capital assets, net of related debt.
B) A DEBIT to capital assets and a CREDIT to capital contribution.
C) A DEBIT to capital assets and a CREDIT to transfer in.
D) A DEBIT to capital assets and a CREDIT to non-operating revenues.
B) A DEBIT to capital assets and a CREDIT to capital contribution.
A city Enterprise Fund received an operating grant during the fiscal year. The Enterprise Fund will report this grant on the statement of revenues, expenses, and changes in net asset as
A) Operating revenues.
B) Non-operating revenues.
C) Other financing sources.
D) Other financing uses.
B) Non-operating revenues.
An Enterprise Fund incurs $35,000 in interest during the current year related to its outstanding bonds. The $35,000 will be reported as
A) Other financing uses.
B) Operating expenses.
C) Non-operating expenses.
D) Capitalized interest because all interest must be capitalized in an Enterprise fund.
C) Non-operating expenses.
An Enterprise Fund made a debt service payment of $75,000 ($45,000 principal, $30,000 interest). The Enterprise Fund will report
A) $30,000 of expense.
B) $75,000 of expense.
C) $0 expenses.
D) a liability reduction of $75,000.
A) $30,000 of expense.
Assume that an Enterprise Fund contributed $85,000 to the General Fund for operations. The money is not intended to be a loan. Which of the following statements is true?
A) The Enterprise Fund will report capital contributions of $85,000.
B) The Enterprise Fund will report expenses of $85,000.
C) The Enterprise Fund will report other financing uses of $85,000
D) The Enterprise Fund will report advances of $85,000.
E) The Enterprise Fund will report transfers out of $85,000.
E) The Enterprise Fund will report transfers out of $85,000.
Interest revenue earned by an Internal Service Fund will be reported on the statement of revenues, expenses, and changes in net assets as
A) Non-operating revenue.
B) An other financing source
C) Operating revenue.
D) A capital contribution
A) Non-operating revenue.
A self-insurance activity that is accounted for in an Internal Service Fund pays $365,000 in claims during the year. Because the Internal Service Fund is a proprietary fund, the claims will be reported on the statement of revenues, expenses, and change in net assets as
A) An operating expense
B) A contra-revenue to premiums charged
C) An other financing use
D) A non-operating expense.
A) An operating expense
Caraway County has a Self-Insurance Internal Service Fund. If the fund purchases $100,000 of investments during the month, the
A) Fund’s total assets will remain the same
B) Fund’s expenditures will increase by $100,000
C) Fund’s total assets will increase by $100,000
D) Fund’s total assets will decrease by $100,000
A) Fund’s total assets will remain the same
Which of the following would likely be accounted for in an Internal Service Fund?
A) A government’s water and sewer department if it provides water and sewer services to government departments as well as to residents and businesses in the community.
B) A government’s central printing shop that provides a very minimal amount of services to a few outside customers.
C) The Payroll and Benefits Department of the government
D) All of the above are likely to be accounted for in an Internal Service Fund
B) A government’s central printing shop that provides a very minimal amount of services to a few outside customers.
An Internal Service Fund billed other departments $1,200,000 for services provided during the year. Expenses of $700,000 for salaries, $250,000 for supplies and materials used, $100,000 for depreciation, and $100,000 for interest expenses were incurred. The fund received a $42,000 transfer from the General Fund during the year. The Internal Service Fund should report operating income for the year of
A) $50,000
B) $92,000
C) $150,000
D) $192,000
C) $150,000
