Question

QUESTION 5

1. When the adjusting entry is made to the "Investment in Capital Asset" account, what other account is debited or credited?

   		Restricted net position
   		Capital Assets
   		Committed net position
   		Unrestricted net position

QUESTION 7

1. Are revenues from sewer operations sufficient to cover operating expenses in the long-run?

   Yes

   No

QUESTION 8

1. Assume the city's general fund has an outstanding payable to its sewer fund, which has a corresponding receivable from the general fund. In the city's government-wide statement of net position, which would be correct?

   		The payable may be aggregated with payables to the internal service fund and reported as "payables to proprietary funds."
   		The payable should be reported in the business-activities column and the receivable in the governmental activities column.
   		The payable and the corresponding receivable would be eliminated in the preparation of the government-wide statements and thus would not be reported.
   		The payable should be reported in the governmental activities column and the receivable in the business-activities column.

QUESTION 9

1. Which of the following accounts would not be reported in the operating statement of an Enterprise Fund?

   		Depreciation expense.
   		Bond Proceeds.
   		Salaries and wages expense.
   		Capital Contributions

QUESTION 10

1. The city is considering collecting a sewer deposit when new residents begin receiving services. What effect would the customer deposits have on the net position accounts?

   		An increase in the Unrestricted Net Position.
   		no effect on the Net Position.
   		An increase in the Net Investment in Capital Assets.
   		An increase in the Restricted Net Position,

Answer 1

Answer:

5.

Capital assets is debited or credited , when adjusting entry is made to the "Investment in Capital Asset" account.

8.

The payable should be reported in the governmental activities column and the receivable in the business-activities column, has a corresponding receivable from the general fund,In the city's government-wide statement of net position.

9.

Depreciation cost , on the entirety of an Enterprise Fund's capital assets must be accounted for as costs in the fund’s operating statement

10.

An increase in the Restricted Net Position, is a default classification . In the event that the advantage doesn't meet criteria for net investment in capital resources ,and limited segment of net position ,it ought to be accounted for as unrestricted.