F8 - Proprietary Funds Flashcards
For purposes of government-wide financial statements, internal service funds are normally reported in the:
Governmental activities column of the government-wide Statement of Net Position and the Statement of Activities since they are generally established to service the governmental funds.
Interest expense associated with debt in an enterprise fund is accounted for
On the accrual basis.
The term used to identify the equity section in proprietary funds is
“Net position.” An enterprise fund is a proprietary fund and it will report net position as fund equity.
The billings for transportation services provided to other governmental units are recorded by the internal service fund as:
Operating revenues
Journal Entry:
DR: Due from other funds:
CR: Operating Revenues
An enterprise fund may be used to account for the provision of goods and services that are financed mainly by:
User charges
Depreciation expense is recorded in which type of funds?
Proprietary funds, but not governmental funds.
Shared revenues received by an enterprise fund of a local government for operating purposes should be recorded in fund financial statements as:
Non-operating revenues.
Due from other funds appears on the
balance sheet. They are not a component of changes in net position.
The cash flow statement of a governmental entity is only prepared for
proprietary funds.
Which funds record and depreciate their own fixed assets in a manner consistent with the economic resources measurement focus and accrual accounting?
Enterprise funds
Activities are required to be reported as enterprise funds if any one of the following criteria are met:
The activity is financed with debt that is secured solely by a pledge of the net revenue from fees and charges
Laws and regulations require that the cost of providing services be recovered through fees
The pricing policies of the activity establish fees and charges designed to recover its costs
