NFP - Test 2 - Ch 9 UPDATED ACTUAL
Exam Questions and CORRECT Answers
What basis of accounting do Enterprise and Internal Service funds use? - CORRECT
ANSWER - Full Accrual (both)
Which of the following is not a GASB required statement for proprietary funds? - CORRECT
ANSWER - Statement of changes in fund net assets
A government need not necessarily account for an activity in an enterprise fund even though it -
CORRECT ANSWER - Charges fees for the activity and those fees are material in amount
Except for FASB pronouncements that have been over ridden by specific GASB
pronouncements, in their enterprise funds governments must - CORRECT ANSWER -
Apply all FASB pronouncements issued prior to Nov 30, 1989 and apply either all or none of the
pronouncements issued after that date.
Tap fees, a portion of which, exceed the cost of hooking customers into the utility should be
accounted for as - CORRECT ANSWER - A combination of capital contributions and
ordinary revenues.
Landfill closure and post-closure costs should be recognized as expenses - CORRECT
ANSWER - In the periods that the landfill is in operation
Which of the following would not be included in the computation of the amount to be recognized
as a landfill closure ex[ense? - CORRECT ANSWER - An appropriate discount rate
A city maintains a staff of internal auditors. It may properly account for its internal audit costs in
an internal service fund only if - CORRECT ANSWER - It charges a fee to the city
departments for which it provides service.
Exam Questions and CORRECT Answers
What basis of accounting do Enterprise and Internal Service funds use? - CORRECT
ANSWER - Full Accrual (both)
Which of the following is not a GASB required statement for proprietary funds? - CORRECT
ANSWER - Statement of changes in fund net assets
A government need not necessarily account for an activity in an enterprise fund even though it -
CORRECT ANSWER - Charges fees for the activity and those fees are material in amount
Except for FASB pronouncements that have been over ridden by specific GASB
pronouncements, in their enterprise funds governments must - CORRECT ANSWER -
Apply all FASB pronouncements issued prior to Nov 30, 1989 and apply either all or none of the
pronouncements issued after that date.
Tap fees, a portion of which, exceed the cost of hooking customers into the utility should be
accounted for as - CORRECT ANSWER - A combination of capital contributions and
ordinary revenues.
Landfill closure and post-closure costs should be recognized as expenses - CORRECT
ANSWER - In the periods that the landfill is in operation
Which of the following would not be included in the computation of the amount to be recognized
as a landfill closure ex[ense? - CORRECT ANSWER - An appropriate discount rate
A city maintains a staff of internal auditors. It may properly account for its internal audit costs in
an internal service fund only if - CORRECT ANSWER - It charges a fee to the city
departments for which it provides service.
