Question : 90.Which of the following true regarding internal service funds? A)Internal service : 1255468

90.Which of the following is true regarding internal service funds?

A)Internal service funds provide services primarily to external users on a user charge basis.

B)Internal service funds normally record the annual budget in the accounts.

C)Internal service funds use full accrual accounting.

D)Internal service funds’ capital assets are not accounted for in the accounts.

91.Indicate which of the following would not be an example of an internal service fund:

A)City Self-Insurance Fund

B)City Print Shop.

C)City Data Processing Service Center.

D)City Airport.

92.If a government decides to account for its risk management activities in a single fund, it must use:

A)An Internal Service Fund.

B)A Fiduciary Fund

C)A Special Revenue Fund.

D)Either the General Fund or an Internal Service fund.

93.Capital assets of internal service funds should be reported:

A)In the internal service funds only.

B)In the government-wide statements only.

C)In both the internal service funds and the government-wide statements.

D)None of the above, they are not reported

94.An internal service fund provided services to a General Fund department.  At the time of billing, the debit entry in the General Fund would be:

A)Other Financing Sources-Transfers Out.

B)Expenditures.

C)Operating Revenues-Charges for Services.

D)Expenses.

95.Revenue bonds sold by a water utility fund, upon sale, would be recorded:

A)In an enterprise fund as “Other Financing Source.”

B)In an enterprise fund as a liability.

C)In the general long-term debt accounts as a liability.

D) In an enterprise fund as an addition to net assets.

96.Under GASB Statement 34, enterprise funds must be used in which of the following circumstances?

A)When debt is backed solely by fees and charges.

B)When services are provided to other governmental units for a fee.

C)When the activities are expected to make a profit to be used to fund other government programs.

D)None of the above; enterprise funds are optional.

97.The City of Thomasville had the following debt outstanding:

General obligation bonds to be paid from a debt service fund$3,900,000

General obligation bonds to be paid from utility revenues$3,100,000

Revenue bonds to be paid from utility revenues$2,400,000

The amount that should be shown as debt in the utility (enterprise) fund would be:

A)$2,400,000.

B)$3,100,000.

C)$5,500,000.

D)$9,400.000

98.Which of the following is not true regarding enterprise funds?

A)Enterprise funds record long-term debt directly in the fund accounts.

B)Enterprise funds record capital assets directly in the fund accounts.

C)Enterprise funds report a Statement of Cash Flows.

D)The difference between assets and liabilities of enterprise funds is termed “Fund Balance.”

99.Which of the following is not true regarding enterprise funds?

A)Similar to commercial businesses, enterprise funds equity accounts include both contributed capital and retained earnings.

B)A Statement of Revenues, Expenses, and Changes in Fund Net Assets would be the primary operating statement for enterprise funds.

C)Enterprise funds’ Cash Flow Statements could have up to four categories.

D)None of the above; all are true.