Governmental Accounting Final
questions with actual answers.
A developer agreed to pay for water and wastewater infrastructure associated with one of his
development projects. Once the work is completed and the new lines are connected, they will become
part of the city's Enterprise Fund capital assets. The entry that should be recorded by the Enterprise
Fund would be
a A DEBIT to capital assets and a CREDIT to invested in capital assets, net of related debt.
b A DEBIT to capital assets and a CREDIT to capital contribution.
c A DEBIT to capital assets and a CREDIT to transfer in.
d A DEBIT to capital assets and a CREDIT to nonoperating revenues. ANS -b A DEBIT to capital assets and
a CREDIT to capital contribution.
A city Enterprise Fund received an operating grant during the fiscal year. The Enterprise Fund will report
this grant on the statement of revenues, expenses, and changes in net asset as
a Operating revenues.
b Non-operating revenues.
c Other financing sources.
d Other financing uses. ANS -b Non-operating revenues.
An Enterprise Fund incurs $35,000 in interest during the current year related to its outstanding bonds.
The $35,000 will be reported as
a Other financing uses.
b Operating expenses.
c Non-operating expenses.
d Capitalized interest because all interest must be capitalized in an Enterprise fund. ANS -c Non-
operating expenses.
, An Enterprise Fund made a debt service payment of $75,000 ($45,000 principal, $30,000 interest). The
Enterprise Fund will report
a $30,000 of expense.
b $75,000 of expense.
c $0 expenses.
d a liability reduction of $75,000 ANS -a $30,000 of expense.
Assume that an Enterprise Fund contributed $85,000 to the General Fund for operations. The money is
not intended to be a loan. Which of the following statements is true?
a The Enterprise Fund will report capital contributions of $85,000.
b The Enterprise Fund will report expenses of $85,000.
c The Enterprise Fund will report other financing uses of $85,000
d The Enterprise Fund will report advances of $85,000.
e The Enterprise Fund will report transfers out of $85,000. ANS -e The Enterprise Fund will report
transfers out of $85,000.
Interest revenue earned by an Internal Service Fund will be reported on the statement of revenues,
expenses, and changes in net assets as
a Operating revenue.
b Non-operating revenue.
c An other financing source
d A capital contribution ANS -b Non-operating revenue.
Caraway County has a Self-Insurance Internal Service Fund. If the fund purchases $100,000 of
investments during the month, the
a Fund's total assets will increase by $100,000
questions with actual answers.
A developer agreed to pay for water and wastewater infrastructure associated with one of his
development projects. Once the work is completed and the new lines are connected, they will become
part of the city's Enterprise Fund capital assets. The entry that should be recorded by the Enterprise
Fund would be
a A DEBIT to capital assets and a CREDIT to invested in capital assets, net of related debt.
b A DEBIT to capital assets and a CREDIT to capital contribution.
c A DEBIT to capital assets and a CREDIT to transfer in.
d A DEBIT to capital assets and a CREDIT to nonoperating revenues. ANS -b A DEBIT to capital assets and
a CREDIT to capital contribution.
A city Enterprise Fund received an operating grant during the fiscal year. The Enterprise Fund will report
this grant on the statement of revenues, expenses, and changes in net asset as
a Operating revenues.
b Non-operating revenues.
c Other financing sources.
d Other financing uses. ANS -b Non-operating revenues.
An Enterprise Fund incurs $35,000 in interest during the current year related to its outstanding bonds.
The $35,000 will be reported as
a Other financing uses.
b Operating expenses.
c Non-operating expenses.
d Capitalized interest because all interest must be capitalized in an Enterprise fund. ANS -c Non-
operating expenses.
, An Enterprise Fund made a debt service payment of $75,000 ($45,000 principal, $30,000 interest). The
Enterprise Fund will report
a $30,000 of expense.
b $75,000 of expense.
c $0 expenses.
d a liability reduction of $75,000 ANS -a $30,000 of expense.
Assume that an Enterprise Fund contributed $85,000 to the General Fund for operations. The money is
not intended to be a loan. Which of the following statements is true?
a The Enterprise Fund will report capital contributions of $85,000.
b The Enterprise Fund will report expenses of $85,000.
c The Enterprise Fund will report other financing uses of $85,000
d The Enterprise Fund will report advances of $85,000.
e The Enterprise Fund will report transfers out of $85,000. ANS -e The Enterprise Fund will report
transfers out of $85,000.
Interest revenue earned by an Internal Service Fund will be reported on the statement of revenues,
expenses, and changes in net assets as
a Operating revenue.
b Non-operating revenue.
c An other financing source
d A capital contribution ANS -b Non-operating revenue.
Caraway County has a Self-Insurance Internal Service Fund. If the fund purchases $100,000 of
investments during the month, the
a Fund's total assets will increase by $100,000
