Question : 80.Which of the following true regarding the recording of long : 1255467

80.Which of the following is true regarding the recording of long term debt in an enterprise fund?

A)When revenue bonds are sold at par, Cash is debited and Bonds Payable is credited.

B)The bonds would be reported in both an enterprise fund and in the government-wide statements.

C)Both of the above.

D)Neither of the above.

81.Norton County operated a landfill, and accounted for it as an enterprise fund.  The closure and postclosure care costs are estimated to be $15,000,000.  It is estimated that the capacity of the landfill is 5 million tons of waste and that waste will be accepted for 10 years.  During 2014, 250,000 tons of waste was accepted by the landfill.  The charge for closure and postclosure care costs for 2014 would be:

A)$ 750,000.

B)$1,500,000.

C) $ 15,000,000

D)Impossible to determine from the information given.

82.Which of the following is false regarding the cash flow statements of a proprietary fund?

A)A reconciliation is required between the Statement of Revenues, Expenses, and Changes in Fund Net Assets and the cash flows from operating activities section of the Cash Flow Statement.

B)Interest payments are reported as increases in cash flows from either capital and related financing or noncapital financing activities, whichever is appropriate.

C)Purchases of equipment would be reported in the investing section.

D)None of the above. – these are all true.

83.Capital assets of an enterprise fund should be reported in the:

A)Government-Wide Statement of Net Assets only.

B)Proprietary Fund Statement of Net Assets only.

C)General Fixed Asset Account Group only.

D)Government-Wide Statement of Net Assets and Proprietary Funds Statement of Net Assets.

84.Which of the following is true regarding the Statement of Cash Flows required by the GASB for proprietary funds?

A)Either the direct or indirect method may be used.

B)Interest payments would be recorded as investing activities.

C)Acquisition of capital assets with bond proceeds would be a decrease in cash provided by capital and related financing activities.

D)Interest received on investments is reported as cash flows from operating activities.

85.Which of the following is not true regarding proprietary funds?

A)Accrual accounting and the economic resource measurement focus are used.

B)Statements required are the Balance Sheet, the Statement of Revenues, Expenditures, and Changes in Fund Balances, and the Statement of Cash Flows.

C)Long Term debt is recorded directly in the accounts.

D)Proprietary funds financial reports include the Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows.

86.Which of the funds listed below would include capital assets in its Statement of Net Assets?

A)Permanent.

B) Internal Service.

C)Special Revenue.

D)None of the above; no funds in governmental accounting have capital asset accounts.

87.Long-term liabilities of an enterprise fund should be reported in the:

Proprietary Fund Statements

Government-Wide Statements

A)

No

No

B)

No

Yes

C)

Yes

No

D)

Yes

Yes

88.Which of the following would generally be included in the Statement of Net Assets of an Enterprise Fund?

Reserve for Encumbrances

Revenue Bonds Payable

A)

No

No

B)

No

Yes

C)

Yes

No

D)

Yes

Yes

89.How should customer deposits held for water meters that cannot be spent for operating purposes be classified?

A)As restricted cash in an Enterprise Fund.

B)As both cash and a liability in an Agency fund.

C)As Nonspendable fund balance in a Permanent Fund.

D) Any of the above are acceptable alternatives.