Proprietary Funds FS (F10:M1)

Question 1

if an internal service fund sells equipment, how should the G/L be recorded?

Answer 1

as a G/L.

They would only be displayed as a special item in the fund’s FS if the amount was material

Question 2

if an activity is intended to be primarily (>50%) self-supported by user charges, which fund would be used to account for the activity?

Answer 2

an enterprise fund

Question 3

do proprietary funds need to present a statement of CF?

Answer 3

YES

Question 4

how should shared revenues received by a proprietary fund be recorded?

Answer 4

as non-operating revenue

Question 5

do proprietary funds carry an equity balance?

Answer 5

YES

Question 6

what is the difference between an enterprise fund and an internal service fund?

Answer 6

enterprise fund is used for activities that provide goods/services to the general public

internal service fund is used for activities that provide services to another fund (government entity)

Question 7

internal service funds are frequently combined with what type of funds for purposes of displaying governmental activities in the government-wide FS?

Answer 7

governmental funds bc they are often set up to primary service the governmental funds of the government

Question 8

what is the order of line items on a proprietary fund statement of revenues, expenses, and changes in fund net position? (INCASET)

Answer 8

Income (operating)
Non operating (income and exp)
Capital contributions
Additions to endowments
Special items
Extraordinary items
Transfers

Question 9

what are the 3 FS that proprietary funds must present?

Answer 9

statement of revenues, expenses, and changes in net position

statement of net position

statement of cash flows