NFP Exam 3 (CH6, 7, & 8) Questions and Answers 100% Pass

NFP Exam 3 (CH6, 7, & 8) Questions and Answers 100% Pass What are proprietary funds? - Internal Service and Enterprise little businesses What basis and resource focus does proprietary funds use? - Full accrual and economic resource What are the 3 statements under proprietary funds? - STMT of net position (CLASSIFIED B/S) STMT of revs, expenses, & changes in fund net position (I/S) STMT of Cash Flows 2 Katelyn Whitman, All Rights Reserved © 2025 What are the sections of the statement of Cash Flows for proprietary funds? - Operating, Noncapital Financing, Capital Financing, and Investing What do internal service funds do under proprietary funding? - provides services to other governmental units What are the 3 items under net position for internal service funds? - Net Investment in Cap Assets (cap assets-accumulated depreciation)-any dept associated w acq. of cap assets Restricted Unrestricted What do the post-closure costs for landfills need to be/do? - Accrued and Matched Responsible for: 3 Katelyn Whitman, All Rights Reserved © 2025 Closure Cover Cost of Care - estimate for 30 years & match it for the life while in operations Who's held accountable for pollution remediation? - current owner, past owner(s), and users of the site When are Enterprise funds under Proprietary funding appropriate? - when a gov offers services to the public on a user-charge basis What are examples of Enterprise funds? - public utilities, notably water & sewer utilities, airports, parking garages, etc When are budgetary accounts used? - Only if required by law Unlike internal service funds, enterprise funds - it is frequently desirable to operate at a profit (increase in net position) What is required between I/S & STMT OF CF'S - RECONCILIATION 4 Katelyn Whitman, All Rights Reserved © 2025 asset retirement obligation - An existing legal obligation, whose amount can be reasonably estimated, associated with the retirement of a long-lived asset. Companies should record the ARO at FAIR VALUE! When is the use of Fiduciary funds appropriate? - Holding for others What are the 2 statements under Fidiciary? - STMT of Fid Net Position STMT of Changes in Fid Net Position (additions & deductions) Fiduciary activities are excluded from - Gov't wide statements Fid activities may be performed through a - legally separate unit of the gov (like pension plans) or formal trust agreements What are the 4 fund types under Fid Funds? - Pension