Proprietary Funds Financial Statements

Question 1

Government C sponsors a public entity risk pool in which Government C is also a participant. However, Government C is not the predominant participant in the pool. For the situation described, indicate the fund(s) Government C must use to account for the risk pool.

Answer 1

Enterprise Fund

Question 2

In Proprietary funds of governments, including enterprise funds, report unrestricted grants, restricted operating grants and Restricted capital grants are reported as?

Answer 2

Unrestricted & Restricted Operating Grants are reported as Non Operating revenue

Restricted Capital Grants are reported as Capital Contributions

Question 3

Equipment and facilities included in the estimated total current cost of closure and post-closure care should not be reported as capital assets. What should they be included at?

Answer 3

Equipment, facilities, services, and final cover, included in the estimated total current cost, should be reported as a reduction of the accrued liability for landfill closure and post-closure care, when they are acquired.