©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NFP Exam 3 (CH6, 7, & 8) Questions And
Answers |Latest 2025 | Guaranteed Pass.
What are proprietary funds? - Answer✔Internal Service and Enterprise
little businesses
What basis and resource focus does proprietary funds use? - Answer✔Full accrual and
economic resource
What are the 3 statements under proprietary funds? - 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? -
Answer✔Operating, Noncapital Financing, Capital Financing, and Investing
What do internal service funds do under proprietary funding? - Answer✔provides services to
other governmental units
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
What are the 3 items under net position for internal service funds? - 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? - 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? - Answer✔current owner, past owner(s),
and users of the site
When are Enterprise funds under Proprietary funding appropriate? - Answer✔when a gov
offers services to the public on a user-charge basis
What are examples of Enterprise funds? - Answer✔public utilities, notably water & sewer
utilities, airports, parking garages, etc
When are budgetary accounts used? - Answer✔Only if required by law
Unlike internal service funds, enterprise funds - Answer✔it is frequently desirable to operate at
a profit (increase in net position)
2|P a g e
NFP Exam 3 (CH6, 7, & 8) Questions And
Answers |Latest 2025 | Guaranteed Pass.
What are proprietary funds? - Answer✔Internal Service and Enterprise
little businesses
What basis and resource focus does proprietary funds use? - Answer✔Full accrual and
economic resource
What are the 3 statements under proprietary funds? - 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? -
Answer✔Operating, Noncapital Financing, Capital Financing, and Investing
What do internal service funds do under proprietary funding? - Answer✔provides services to
other governmental units
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
What are the 3 items under net position for internal service funds? - 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? - 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? - Answer✔current owner, past owner(s),
and users of the site
When are Enterprise funds under Proprietary funding appropriate? - Answer✔when a gov
offers services to the public on a user-charge basis
What are examples of Enterprise funds? - Answer✔public utilities, notably water & sewer
utilities, airports, parking garages, etc
When are budgetary accounts used? - Answer✔Only if required by law
Unlike internal service funds, enterprise funds - Answer✔it is frequently desirable to operate at
a profit (increase in net position)
2|P a g e
