21.Proprietary funds use the economic resources measurement focus and modified accrual basis of accounting.
22.Fund-basis financial statements prepared for proprietary funds include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows.
23.Proprietary funds do
not
record capital assets, depreciation on those capital assets, and long-term debt.
24.Investment pools are an example of an activity that may be accounted for in an internal service fund.
25.Cash flow statements of proprietary funds must use the direct method for recording cash flows from operations.
26.Municipal solid waste landfills, when accounted for as proprietary funds, record a liability for closure and post-closure care costs; recording expenses on a units of production basis.
27.The Proprietary Fund Statement of Net Positionmay choose whether to classify assets and liabilities between current and long-term.
28.When estimating uncollectible accounts, an enterprise fund will record a debit to Bad Debt Expense and a credit to Accumulated Provision for Uncollectible Accounts.
29.Impact fees charged to real estate developers are recorded in an enterprise fund as capital contributions, a nominal account that will increase Net Position, but is reported separately in the statement of Revenues, Expenses and Changes in Fund Net Position.
30.Post-closure costs are recorded in a solid waste landfill enterprise fund at the present value of estimated future costs.