Multiple-Choice Questions on Proprietary Funds [AICPA Adapted]Select the correct answer fo...

Multiple-Choice Questions on Proprietary Funds [AICPA Adapted]

Select the correct answer for each of the following questions.

1. Which of the following accounts could be included in the statement of net assets of an enterprise fund?

2. Customers’ meter deposits that cannot be spent for normal operating purposes would most likely be classified as restricted cash in the balance sheet of which fund?

a. Internal service.

b. Private-purpose trust.

c. Agency.

d. Enterprise.

3. Which fund is not an expendable fund?

a. Capital projects.

b. General.

c. Special revenue.

d. Internal service.

4. If a governmental unit established a data processing center to service all agencies within the unit, the data processing center should be accounted for as a(n)

a. Capital projects fund.

b. Internal service fund.

c. Agency fund.

d. Trust fund.

5. Recreational facilities run by a governmental unit and financed on a user-charge basis would be accounted for in which fund?

a. General.

b. Trust.

c. Enterprise.

d. Capital projects.

6. The Underwood Electric Utility Fund, which is an enterprise fund, had the following during its 20X1 fiscal year, ending at December 31, 20X1:

What amount should be reflected in the statement of revenues, expenses, and changes in fund net assets of the Underwood Electric Utility Fund for these items?

a. $(43,000).

b. $0.

c. $129,000.

d. $172,000.

7. Which of the following funds of a governmental unit uses the same basis of accounting as an enterprise fund?

a. Special revenue.

b. Internal service.

c. Permanent trust.

d. Capital projects.

8. Fixed assets utilized in a city-owned utility are accounted for in which of the following?

9. Which of the following funds of a governmental unit would account for long-term debt in the accounts of the fund?

a. Special revenue.

b. Capital projects.

c. Internal service.

d. General.