80.Which of the following is true regarding the recording of long term debt in an enterprise fund? A)When revenue bonds are sold at par, Cash is debited and Bonds Payable is credited. B)The bonds...





80.Which of the following is true regarding the recording of long term debt in an enterprise fund?



A)When revenue bonds are sold at par, Cash is debited and Bonds Payable is credited.



B)The bonds would be reported in both an enterprise fund and in the government-wide statements.



C)Both of the above.



D)Neither of the above.



81.Norton County operated a landfill, and accounted for it as an enterprise fund. The closure and post-closure care costs are estimated to be $20,000,000. It is estimated that the capacity of the landfill is 5 million tons of waste and that waste will be accepted for 10 years. During 2015, 750,000 tons of waste was accepted by the landfill. The charge for closure and post-closure care costs for 2015 would be:



A)$ 750,000.



B)$2,000,000.



C) $3,000,000.



D)Impossible to determine from the information given.



82.Which of the following is
false
regarding the cash flow statements of a proprietary fund?



A)A reconciliation is required between the Statement of Revenues, Expenses, and Changes in Fund Net Position and the cash flows from operating activities section of the Cash Flow Statement.



B)Interest payments are reported as increases in cash flows from either capital and related financing or noncapital financing activities, whichever is appropriate.



C)Purchases of equipment would be reported in the investing section.



D)None of the above– these are all true.



83.Capital assets of an enterprise fund should be reported in the:



A)Government-Wide Statement of Net Position only.



B)Proprietary Fund Statement of Net Position only.



C)General Fixed Asset Account Group only.



D)Government-Wide Statement of Net Position and Proprietary Funds Statement of Net Position.



84.Which of the following is true regarding the Statement of Cash Flows required by the GASB for proprietary funds?



A)Either the direct or indirect method may be used.



B)Interest payments would be recorded as investing activities.



C)Acquisition of capital assets with bond proceeds would be a decrease in cash provided by capital and related financing activities.



D)Interest received on investments is reported as cash flows from operating activities.



85.Which of the following is
not
true regarding proprietary funds?



A)Accrual accounting and the economic resource measurement focus are used.



B)Statements required are the Balance Sheet, the Statement of Revenues, Expenditures, and Changes in Fund Balances, and the Statement of Cash Flows.



C)Long Term debt is recorded directly in the accounts.



D)Proprietary funds financial reports include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows.



86.Which of the funds listed below would include capital assets in its Statement of Net Position?



A)Permanent.



B)Special Revenue.



C)Internal Service.



D)None of the above; no funds in governmental accounting have capital asset accounts.



87.Long-term liabilities of an enterprise fund should be reported in the:





































Proprietary Fund Statements




Government-Wide Statements




A)




No




No




B)




No




Yes




C)




Yes




No




D)




Yes




Yes




88.Which of the following would generally be included in the Statement of Net Position of an Enterprise Fund?





































Reserve for Encumbrances




Revenue Bonds Payable




A)




No




No




B)




No




Yes




C)




Yes




No




D)




Yes




Yes




89.How should customer deposits held for water metersthat
cannot
be spent for operating purposes be classified?



A)As restricted cash in an Enterprise Fund.



B)As both cash and a liability in an Agency fund.



C)As Nonspendable fund balance in a Permanent Fund.



D)Any of the above are acceptable alternatives.





May 15, 2022
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