NFP Exam 3 (CH6, 7, & 8) UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What are proprietary funds? - CORRECT ANSWER - Internal Service and Enterprise
little businesses
What basis and resource focus does proprietary funds use? - CORRECT ANSWER - Full
accrual and economic resource
What are the 3 statements under proprietary funds? - CORRECT ANSWER - STMT of net
position (CLASSIFIED B/S)
STMT of revs, expenses, & changes in fund net position (I/S)
STMT of Cash Flows
What are the sections of the statement of Cash Flows for proprietary funds? - CORRECT
ANSWER - Operating, Noncapital Financing, Capital Financing, and Investing
What do internal service funds do under proprietary funding? - CORRECT ANSWER -
provides services to other governmental units
What are the 3 items under net position for internal service funds? - CORRECT
ANSWER - 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? - CORRECT ANSWER -
Accrued and Matched
Responsible for:
Closure
Cover
Cost of Care
- estimate for 30 years & match it for the life while in operations
Who's held accountable for pollution remediation? - CORRECT ANSWER - current
owner, past owner(s), and users of the site
When are Enterprise funds under Proprietary funding appropriate? - CORRECT
ANSWER - when a gov offers services to the public on a user-charge basis
What are examples of Enterprise funds? - CORRECT ANSWER - public utilities, notably
water & sewer utilities, airports, parking garages, etc
When are budgetary accounts used? - CORRECT ANSWER - Only if required by law
Unlike internal service funds, enterprise funds - CORRECT ANSWER - it is frequently
desirable to operate at a profit (increase in net position)
What is required between I/S & STMT OF CF'S - CORRECT ANSWER -
RECONCILIATION
ACTUAL Exam Questions and CORRECT
Answers
What are proprietary funds? - CORRECT ANSWER - Internal Service and Enterprise
little businesses
What basis and resource focus does proprietary funds use? - CORRECT ANSWER - Full
accrual and economic resource
What are the 3 statements under proprietary funds? - CORRECT ANSWER - STMT of net
position (CLASSIFIED B/S)
STMT of revs, expenses, & changes in fund net position (I/S)
STMT of Cash Flows
What are the sections of the statement of Cash Flows for proprietary funds? - CORRECT
ANSWER - Operating, Noncapital Financing, Capital Financing, and Investing
What do internal service funds do under proprietary funding? - CORRECT ANSWER -
provides services to other governmental units
What are the 3 items under net position for internal service funds? - CORRECT
ANSWER - 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? - CORRECT ANSWER -
Accrued and Matched
Responsible for:
Closure
Cover
Cost of Care
- estimate for 30 years & match it for the life while in operations
Who's held accountable for pollution remediation? - CORRECT ANSWER - current
owner, past owner(s), and users of the site
When are Enterprise funds under Proprietary funding appropriate? - CORRECT
ANSWER - when a gov offers services to the public on a user-charge basis
What are examples of Enterprise funds? - CORRECT ANSWER - public utilities, notably
water & sewer utilities, airports, parking garages, etc
When are budgetary accounts used? - CORRECT ANSWER - Only if required by law
Unlike internal service funds, enterprise funds - CORRECT ANSWER - it is frequently
desirable to operate at a profit (increase in net position)
What is required between I/S & STMT OF CF'S - CORRECT ANSWER -
RECONCILIATION
