are established to account for activities of a government that provide goods or services primarily to the public at large on a consumer charge basis. Most business-type activities of a government are accounted for and reported in this fund.
Proprietary Fund Statement of Net Assets
much like the balance sheet of a business entity.
include Enterprise Funds and Internal Service Funds. Because both of these are this, many of their accounting and reporting requirements are identical.
Proprietary Fund Accounting Equation
Current Assets + Capital Assets + Other Noncurrent Assets - Current Liabilities + Long-Term Liabilities = Net Assets
Traditional Balance Sheet Equation
Current Assets + Capital Assets + Other Noncurrent Assets = Current Liabilities + Long-Term Liabilities + Net Assets
Invested in Capital Assets, Net of Related Debt
is the net asset component that indicates the fund's net investment in capital assets. This component equals the: funds capital assets, less accumulated depreciation, less capital-asset-related borrowings (debt) of the fund.
Restricted Net Assets
is the net asset component that indicates the amount of restricted net assets of a proprietary fund in excess of noncapital borrowings and other liabilities directly associated with (payable from) those restricted assets.
Unrestricted Net Assets
is the remainder of the funds net assets. It represents the portion of net assets that does not meet the definition of "restricted" or "invested in capital assets, net of related debt."
Statement of Revenues, Expenses, and Changes in Fund Net Assets
the proprietary fund operating statement.
Cash Flows from Operating Activities
differs from business in that it generally incorporates only the cash effects of transactions and events that enter into operating income rather than net income.
Cash Flows from Noncapital Financing Activities
cash flows from issuing (or repaying) debt, interest payments, inter-fund transfers from other funds, and certain other transactions are classified as this.
Cash Flows from Capital and Related Financing Activities
cash flows from issuing (or repaying) debt, interest payments, inter-fund transfers from other funds, and certain other transactions are classified as this if clearly attributable to capital asset financing.
Cash Flows from Investing Activities
include making or disposing of investments in debt or equity instruments, making and collecting most loans, and the related interest and dividends received.
intergovernmental grants that must be solely used for construction, acquisition, or improvement of capital assets.
all other intergovernmental grants besides Capital Grants.
Capitalization of Interest Cost
state and local governments may issue both taxable and tax-exempt bonds and other debt securities to finance Enterprise Fund capital assets. This is only done on the taxable debt and follows the same guidance as for commercial entities.
most transactions between the Enterprise and other government departments should be accounted for in the same manner as _________ transactions.
Which method does the GASB require be used for presenting the Cash Flows from Operating Activities?
Refundings of General Long-Term Liabilities
involve the issuance of new debt whose proceeds are used to repay previously issued (old) debt. The new debt proceeds may by used to repay the old debt immediately (a current refunding); or the new debt proceeds may be placed with an escrow agent and invested until they are used to pay principal and interest on an old debt at a future time (an advance refunding).
Deferred Interest Expense
reported as a deduction from (or addition to) Refunding Bonds. This is amortized over shorter life of refunded bonds (old debt) and refunding bonds (may use any rational systematic method; most govts use straight-line method)
Interest Cost on _____ ______ follows guidance of private sector.
not your typical adjusting entry. Represents revenues earned but not billed as part of the normal billing process (electricity sold and water used, etc.)
requires governments to either 1.) Follow FASB Standards issued after #102, unless it conflicts with GASB Standards, OR 2.) Not to apply subsequent standards (usual choice)
transactions not involving the actual flow of cash (but still have to be recorded on the CF statement). Examples include: signing a capital lease, capital assets (or other noncash items) donated to the Proprietary Fund, issuing debt to acquire a capital asset, or unrealized gains and losses on investments.
Billings to other departments are recorded as:
"Free" services provided to other funds recognized as _____ other fund with corresponding revenue.