Account For Proprietary Funds Practice Test

A municipality operates a water utility accounted for as an enterprise fund. During the year, the utility received $2.0 million in operating revenues, incurred $1.8 million in operating expenses (including depreciation), and the city council approved a $0.3 million transfer to the general fund to support public safety. Under GASB standards for proprietary funds, what financial statement impact does the event have on the enterprise fund’s change in net position?

A city’s internal service fund (central print shop) sells printing services primarily to the city’s own departments, but during the year it also provided $0.2 million of services to an external nonprofit organization at market rates. Under GASB standards for proprietary funds, what financial statement impact does the event have on the internal service fund’s reporting?