Proprietary Funds

Question 1

Established to finance and account for services and supplies provided exclusively to other departments within a government unit or to other governmental units, typically on a cost-reimbursement basis

Answer 1

internal service fund

Question 2

Restricted grant revenues are recognized as revenues in the year monies are ______

Answer 2

spent

Question 3

Operating revenues are recognized when _____

Answer 3

earned

Question 4

Proprietary funds use ______ accounting, and recording _______, _____ ______, and _______

Answer 4

accrual, LTD, fixed assets, depreciation

Question 5

Net position =

Answer 5

RUN

restricted, unrestricted, net investment

Question 6

Contributions from other funds are an ______ transfer

Answer 6

interfund

Question 7

Sale of “general obligation bonds” are recorded as:

Answer 7

long-term bond payable

Question 8

Long-term advances are recorded as _____ to other fund

Answer 8

due

Question 9

Internal service funds are frequently ________ with governmental funds for the purposes of displaying governmental activities in the government-wide financial statements

Answer 9

combined

Question 10

Used to account for operations that are financed and operated in a manner similar to private business enterprise

Answer 10

enterprise fund

Question 11

Examples of enterprise funds are:

Answer 11

public utilities, public hospitals, public universities, public transportation, and lotteries

Question 12

Shared revenues are __________ revenues of the local government

Answer 12

nonoperating

Question 13

Internal service funds and enterprise funds do not record _______ nor _______

Answer 13

budgets; encumbrances

Question 14

Equipment expected to be installed, monitoring, and the final cover (capping) are cost components of:

Answer 14

municipal landfills

Question 15

Accounting for municipal landfills is similar to:

Answer 15

depletion

Question 16

Financing activities are split into two categories for the statement of class flows for proprietary funds: The two categories are:

Answer 16

noncapital and capital

Question 17

Order of activities for proprietary funds statement of cash flows:

Answer 17

operating, noncapital financing, capital financing, and investing (the order of investing and financing is switched from the normal flow of a statement of cash flows)

Question 18

The statement of cash flows is reconciled to ______ ______ not net income

Answer 18

operating income

Question 19

An ________ fund is also used for governmental facilities and services intended to be primarily (> 50%) self-supported by user charges.

Answer 19

enterprise

Question 20

If the pricing policies of an activity establish fees and charges designed to recover its costs, the activity should be displayed within an ______ fund

Answer 20

enterprise

Question 21

An internal service fund’s “due from other funds” account is reported on the _____ ______

Answer 21

balance sheet

Question 22

Statement of net position is the same as:

Answer 22

income statement

Question 23

Internal designation of funds are classified as _________

Answer 23

unrestricted