FAR 4

Question 1

FAR 4

For purposes of government-wide financial statements, internal service funds are normally reported where?

Answer 1

In the governemntal activites column of the gov’t wide statement of Net Postion and the Statement of Activites since they are generally established to service the governmenttal funds.

Question 2

FAR 4

Interest expense associated with debt in an ENTEPRISE FUND is accounted for on the?

Answer 2

Accrual basis.

Question 3

FAR 4

Equipment, facilities and services purchased previously included in the estimated current cost of closure and post-closure care should be reported as?

Answer 3

Capital assets but should be reported as a REDUCTION OF THE ACCRUED LIABILITy in the general long-term liabilities displaayed in the governemnt-wide financial statements when they are acquired.

Question 4

FAR 4

Financial statements for which fund type generally report net position in their individual fund financial statements?

Answer 4

Enteprise Fund.

Question 5

FAR 4

The term used to identify the equity section in proprietary funds is?

Answer 5

“net position”

Question 6

FAR 4

The term used to identify the equity section in governmental funds is?

Answer 6

“Fund Balance”

Question 7

FAR 4

Billings for transportation services provided to other governmental units are considered? What is the J/E?

Answer 7

They are considered quasi-external transactions and are treated as revenues by the internal service fund. DR. Due from other funds CR. Operating Revenues

Question 8

FAR 4

Cash flows from capital and related financing activities include contributions from?

Answer 8

Subdividers Proceeds from sale revenue bonds

Question 9

FAR 4

Cash received from customer households would be reported as?

Answer 9

Cash flows from operating activities.

Question 10

FAR 4

An ENTEPRISE FUND may be used to account for?

Answer 10

provision of goods and services that are financied mainly by user chargers. (e.g. state-operated lottery and state-operated hospital are financed mainly by user charges)

Question 11

FAR 4

What must be presented for all proprietary funds as part of a set of financial statements?

Answer 11

A statement of cash flows (both public benefit corp, and governmental utitlies)

Question 12

FAR 4

Shared revenues received by an enteprise fund of a local gov’t for operating purposes should be recorded in fund financial statements as?

Answer 12

Non-operating revenues.

Question 13

FAR 4

Both enteprise funds and internal service funds are considered what type of fund?

Answer 13

Proprietary funds

Question 14

FAR 4

Which account does not affect an internal servie fund’s change in net position?

Answer 14

Due from other funds. (depreciation affects change in net position for proprietary fund)

Question 15

FAR 4

How are cash flows from capital financing actvities reported on the cash flow statement?

Answer 15

Cash flows from capital financing activities are reported separately from cash flows from non-capital financing activites.

Question 16

FAR 4

Operations of a gov’t whose costs are primarily supported by outside user charges would normally be accounted for in an?

Answer 16

Enterprise Fund

Question 17

FAR 4

An enterprise fund is used for?

Answer 17

Governmental facilities and servies intended to be primarily (>50%) self-supported by user charges.

Question 18

FAR 4

Activities are required to be reported as enterprise funds if any one of the following criteria are met:

Answer 18

(A) The activity is financed with debt that is secured solely by a pledge of the net revenue from fees and charges (B) Laws andregulations require that the cost of providing services be recovered through fees (C) The pricing policies of the activity establish fees and charges designed to recover its costs.

Question 19

FAR 4

A city counsel designates funds in the enterprise fund for future equipment replacement. The enterprise fund should report this as?

Answer 19

An unrestricted component of net posiition.