Goods and services provided by internal service funds to other departments of the government are typically priced to:
Cover variable costs only.
Cover full costs (both fixed and variable).
Cover full costs, plus an additional charge to capital maintenance
Cover full costs, plus an additional charge to capital maintenance and anticipated expansion needs.
Internal service funds utilize encumbrance accounting.
False
Unlike the General Fund and other major governmental funds for which a budget is legally adopted, proprietary funds are not required by GASB standards to record budgets in their accounting systems, nor are they required to present a budgetary comparison s
True
Internal service funds account for operating expenditures on the accrual basis.
True
Which of the following illustrates the appropriate basis of accounting for enterprise and internal service funds?
Enterprise Funds Internal Service Funds
Modified Accrual Modified Accrual
Modified Accrual Accrual
Accrual Modified Accrual
Accrual Accrual
Accrual and accrual
If enterprise funds are the predominant participants in an internal service fund, the government should report the internal service fund's residual assets, deferred inflows and outflows of resources, and liabilities within the business-type activities col
true
Interest and principal on enterprise fund revenue bonds should be recorded in a debt service fund until paid.
False
The following cash transactions were among those reported by Genesee County's Wastewater Enterprise Fund for the year:
Proceeds from sale of revenue bonds for construction $5,000,000
Interest income 300,000
Capital contributed by developers 1,000,000
In t
300k
The following cash transactions were among those reported by Genesee County's Wastewater Enterprise Fund for the year:
Proceeds from sale of revenue bonds for construction $5,000,000
Interest income 300,000
Capital contributed by developers 1,000,000
In t
6M
The City of Crescent Hill operates a central motor pool as an internal service fund for the benefit of the city's other funds and departments. In the current year, this fund billed the Parks Department $30,000 for vehicle rentals. If the Parks Department
Expenditures
Proprietary funds follow the current financial resources measurement focus and use the accrual basis of accounting.
False
GASB standards require that interfund receivables and payables between governmental and business-type activities be presented as internal balances.
True
The Central City Golf Course, an enterprise fund, purchased a new stove for use in the course's snack shop. The debit for the entry to record the purchase should be to:
Expenditures.
Purchases.
Equipment.
General capital assets.
Equipment
Equipment acquired under a capital lease for use by an internal service fund will be reported as a capital asset in both the fund and government-wide financial statements.
True
A statement of cash flows is prepared for enterprise funds but not for internal service funds.
False
A motor pool is a common example of an internal service fund.
True
When a supplies internal service fund records a billing to the General Fund, the journal entry in the internal service fund will include:
A debit to Due from General Fund.
A debit to Due to General Fund.
A debit to Billings to Department.
A debit to Inven
A debit to billings to department
Internal service funds should not account for depreciation of capital assets used in their operations, since this would, in effect, charge the government twice for the same assets.
false
when a supplies internal service fund records a billing to the general fund, the journal entry in the internal service fund will include
A. a dr to cost of supplies issued
B. a dr to loans receivable
C. a debit to the billings department
D. a debit to inv
A