161_Quiz_Ch_7_Prop_Funds

161_Quiz_Ch_7_Prop_Funds - ACCY 161 Fall 2010 Accounting...

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ACCY 161 – Fall 2010 Accounting for Business-Type Activities of State and Local Governments Review Exercise True/False 2. Internal service funds of a governmental unit are not intended to provide goods or services, on a cost- reimbursement basis, to members of the general public. 4. Internal service funds should account for operating expenditures on the full accrual basis. 6. Internal service funds should not account for depreciation of capital assets used in their operations, since this would, in effect, charge the government twice for the same assets. 11. Internal service funds are intended to operate on taxes or other financing sources authorized by the legally enacted revenue budget for each year; therefore, they are classified as "governmental funds." 12. Proprietary funds are accounted for in a manner similar to investor-owned businesses: among other features, the full accrual basis is used and all of the capital assets used in fund operations is accounted for by the using fund. 13.
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161_Quiz_Ch_7_Prop_Funds - ACCY 161 Fall 2010 Accounting...

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