Accounting for Enterprise and Internal Service Funds: Chapter 9

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

WEEK 6 - ACTIVITY: HOMEWORK CHAPTERS 9 & 101 Week 6 - Activity: Homework Chapters 9 & 10 Jenna Natasha Paz Strayer University ACC410

WEEK 6 - ACTIVITY: HOMEWORK CHAPTERS 9 & 102 Chapter 9 Exercise 9-1. 1.What basis of accounting do enterprise and internal service funds use? EnterpriseInternal Service a.Modified accrualModified accrual b.Modified accrualFull accrual c.Full accrualModified accrual d.Full accrualFull accrual 2.Which of the following is not a GASB‐required statement for proprietary funds? a.Statement of net position b.Statement of revenues, expenses, and changes in fund net position c.Statement of cash flows d.Statement of changes in fund net position 3.A government need not necessarily account for an activity in an enterprise fund even though it a.charges fees for the activity and those fees are material in amount. b.finances the activity solely with revenue debt. c.is required by law or policy to recover the cost of the activity by fees. d.opts to establish pricing policies to recover its costs, including capital costs. 4.Tap fees, to the extent that they do not exceed the cost of hooking customers into the utility, should be accounted for as a.capital contributions.