(True or False)

1. Revenue received by a government as a result of a service concession arrangement (i.e., toll roads revenue and maintenance sold to outside party) should be recognized in the year received.

2. Enterprise Funds are used to account for activities that involve providing services and/or products to other governments.

3. All capital contributions received by an Internal Service Fund are credited directly to the net position account.

4. Depreciation expense is not recorded in an Internal Service Fund.

5. GASB requires cash flow statements to be prepared using the direct method.

6. Internal Service funds normally do not have restricted net position accounts.

7. Within an Enterprise Fund, the Statement of Cash Flow includes the reconciliation of net income to net cash from operations.

8. User charges must be assessed if an Enterprise Fund is to be used for accounting purposes.

9. Non-operating expenses are separated from operating expenses in an Enterprise Fund Statement of Revenue, Expenses and Changes in Net Position.

10. Restricted assets are not separately reported on an Enterprise Fund balance sheet.

Answer rating: 100% (QA)

1 True Explanation The operator of the service concession arrangement recognizes and measures revenu... View the full answer