Day 5 - Proprietary Funds

Question 1

The Billings for transportation services provided to other governmental units are recorded by the internal service fund as:

Answer 1

Operating Revenues

Billions for transportation services provided to other governmental units are considered quasi-external transactions and are treated as revenues by the internal service fund

MCQ-01029

Question 2

State operated lottery and state operated hospital, what find should account for these activities?

Answer 2

Enterprise fund

MCQ-01040

Question 3

Proprietary funds BS is called?

Answer 3

Statement of Net Position

MCQ-05430

Question 4

Gem City’s internal service fund received $50k cash from the general fund to capitalize this fund. The $50k should be reported on Gem’s internal service fund as a credit to:

Answer 4

Transfers

The $50k is a non-reciprocal transfer

MCQ-01143

Question 5

What does not affect an internal service funds change in net position?

Answer 5

Due from other funds

This appears on the BS - Stmt of Net Position

MCQ-01054

Question 6

Is the recognition of depreciation expense required for public colleges and private not-for-profit colleges?

Answer 6

Not required for Public

Required for Private

MCQ-01366

Question 7

Activities are required to be reported in an enterprise fund if one of these criteria are met:

Answer 7

1. The activity is financed with debt that is secured solely by a pledge of net revenue from fees and charges
2. Laws require the cost of providing services be recovered through fees
3. The pricing policy of the activity establish fees and charges to recover costs

MCQ-07246

Question 8

Which governmental entities that use proprietary fund accounting should use a Stmt of Cash Flows?

Answer 8

• Public Benefit Corporations - port, aviation, and transportation authorities
• Governmental Utilities

Note: ALL Proprietary funds must show a Stmt of Cash Flows

MCQ-01042

Question 9

Shared revenues received by an enterprise fund of local government for operating purposes should be recorded in fund FS as:

Answer 9

Non-operating revenues

MCQ-01047

Question 10

How should state appropriations to a state university be reported

Answer 10

Non-operating revenues

MCQ-06586

Question 11

What internal account should East Pikeland township credit when it issues a PO for supplies?

Answer 11

Dr - Encumbrances
Cr - Budgetary Control

MCQ-00940

Question 12

East Pikeland issued a PO for supplies estimated cost of $50k. When the supplies were received the invoice was for $40k what are the JEs?

Answer 12

Dr - Encumbrances $50k
Cr - Budgetary Control $50k

When the supplies are received:

Dr - Budgetary Control $50k
Cr - Encumbrances $50k
Dr - Expenditures $40k
Cr - Voucher Payable $40k

MCQ-00969

Question 13

Encumbrances Outstanding at year end in a States general fund would be reported as:

Answer 13

Find balance commitment in the general fund

MCQ-00987