Governmental Accounting

Question 1

Placement of narrative explanations of combining and individual fund statements should be presented where?

Answer 1

On divider pages, directly on the statements and schedules

OR

In a separate section

Question 2

Where should discretely presented component units be displayed in the government-wide statement of activities and statement of net position?

Answer 2

In columns to the right and after the primary government’s information

Question 3

When should enterprise funds be employed?

Answer 3

When the pricing policies of the activity establish fees and charges to external users designed to cover its costs, including capital costs