Question

Characteristics of Proprietary Funds. (LO7-1) For each of the phrases below, indicate whether the statement is consistent with an Enterprise Fund (“EF”), an Internal Service Fund (“ISF”), both (“B”), or neither (“N”).

_____1. Uses accrual accounting.

_____2. Uses modified accrual accounting.

_____3. Generally reported within the Business-type activities column of the government-wide statement of net position.

_____4. Generally reported within the Governmental Activities column of the government-wide statement of net position.

_____5. Required by the GASB to prepare a statement of cash flows.

_____6. Required by the GASB to prepare a budgetary comparison schedule or statement.

_____7. Conducts exchange transactions primarily or exclusively with parties outside the government.

_____8. Primarily conducts business with the General Fund and other governmental funds.

_____9. Required to prepare a statement of changes in fund balance.

_____10. Records depreciation.

Accounting for Governmental and Nonprofit Entities e 18

Answer 1