Exercise E10-11-10, please. Thank you. E10-1 (Multiple Choice) Identify the best answer for each of the following:1. Which of the following statements about accounting principles used in Enterprise Funds isfalse?a. Management may choose whether or not to apply recent FASB standards if they do notconflict with GASB standards.b. An Enterprise Fund's statement of cash flows is prepared in the same format as a state-ment of cash flows for a private-sector entity.c. Governmental entities may choose to prepare either a statement of net assets or a bal-ance sheet for an Enterprise Fund.d. Enterprise Funds may adopt budgets on a basis of accounting contrary to GAAP.e. GAAP does not require Enterprise Funds to legally adopt budgets.2. Which of the following activities would be least likely to be operated as and accounted forin an Enterprise Fund?a. Town planning department.ab. Sports stadium.ions]c. Parking garage.Jootong nod. Mass transit authority. grants.3. The city of Philaburg arranged for a 10-year, $40 million loan to finance construction of atoll bridge over the Tradewater River. If the toll bridge is accounted for as an EnterpriseFund activity and a certain portion of the tolls collected is required to be set aside for main-taining the bridge, these resources should be accounted for ina. a Debt Service Fund.b. the General Fund.c. the Toll Bridge Enterprise Fund.d. a Capital Projects Fund. Sange. None of the above.000,32 Rev4. The fund equity of an Enterprise Fund could include any of the following excepta. invested in capital assets, net of related debt.b. fund balance.c. restricted net assets. rantd. unrestricted net assets.e. All of the above are possible classifications of equity in an Enterprise Fund.5. The city of Silerville operates a water authority that sells water to city residents. Each newcustomer is required to pay a $75 deposit at the time of hookup. The deposit cannot bespent, but is returned with interest if the customer maintains a satisfactory payment recordfor two years. The city should record these depositsa. in a Private-Purpose Trust Fund.b. as restricted cash and a liability payable from restricted assets in the Water Fund.c. as unrestricted cash and a long-term liability in the Water Fund.d. as unrestricted cash and a liability payable from restricted assets in the General Fund.e. None of the above.6. All Enterprise Fund transfers are reported in an Enterprise Fund's operating statement asa. nonoperating revenues.b. other financing sources.c. special items.d. None of the above. Enterprise Funds7. Enterprise Fund transfers are reported in an Enterprise Fund's operating statement fora. "free" services provided to other departments.b. capital assets transferred in from other governments without compensation. 1.010tc. interfund loans that are not to be repaid from available expendable financial resources.d. None of the above.8. Depreciation expense on all of an Enterprise Fund's capital assets must be reported asexpenses in the fund's operating statement. However, expenditures to maintain certain capitalassets may be expensed in lieu of reporting depreciation. These capital assets includea. infrastructure capital assets donated to the government.b. infrastructure capital assets that meet the modified approach requirements establishedby GASB Statement No. 34.c. only infrastructure capital assets constructed or acquired prior to July 1, 1980.d. buildings.e. equipment.010Bermainf9. Enterprise Fund resources of $3,000,000 are paid yearly to the General Fund. If these pay-ments are payments in lieu of taxes (not payments for services), they should be recorded inthe Enterprise Fund asa. expenses.b. expenditures.c. other financing uses.d. reductions of revenues.e. transfers out.sigo(ab thoapproach foundalergovern10. Combining Enterprise Fund statements in the CAFR are required to include at a minimum:a. each individual Enterprise Fund.b. each individual major Enterprise Fund.c. each individual nonmajor Enterprise Fund.d. each individual Enterprise Fund used to account for activities that are required to bereported in Enterprise Funds.vities te. None of the above are required to be reported in the CAFR.

Question

Exercise E10-11-10, please. Thank you. E10-1 (Multiple Choice) Identify the best answer for each of the following:1. Which of the following statements about accounting principles used in Enterprise Funds isfalse?a. Management may choose whether or not to apply recent FASB standards if they do notconflict with GASB standards.b. An Enterprise Fund's statement of cash flows is prepared in the same format as a state-ment of cash flows for a private-sector entity.c. Governmental entities may choose to prepare either a statement of net assets or a bal-ance sheet for an Enterprise Fund.d. Enterprise Funds may adopt budgets on a basis of accounting contrary to GAAP.e. GAAP does not require Enterprise Funds to legally adopt budgets.2. Which of the following activities would be least likely to be operated as and accounted forin an Enterprise Fund?a. Town planning department.ab. Sports stadium.ions]c. Parking garage.Jootong nod. Mass transit authority. grants.3. The city of Philaburg arranged for a 10-year, $40 million loan to finance construction of atoll bridge over the Tradewater River. If the toll bridge is accounted for as an EnterpriseFund activity and a certain portion of the tolls collected is required to be set aside for main-taining the bridge, these resources should be accounted for ina. a Debt Service Fund.b. the General Fund.c. the Toll Bridge Enterprise Fund.d. a Capital Projects Fund. Sange. None of the above.000,32 Rev4. The fund equity of an Enterprise Fund could include any of the following excepta. invested in capital assets, net of related debt.b. fund balance.c. restricted net assets. rantd. unrestricted net assets.e. All of the above are possible classifications of equity in an Enterprise Fund.5. The city of Silerville operates a water authority that sells water to city residents. Each newcustomer is required to pay a $75 deposit at the time of hookup. The deposit cannot bespent, but is returned with interest if the customer maintains a satisfactory payment recordfor two years. The city should record these depositsa. in a Private-Purpose Trust Fund.b. as restricted cash and a liability payable from restricted assets in the Water Fund.c. as unrestricted cash and a long-term liability in the Water Fund.d. as unrestricted cash and a liability payable from restricted assets in the General Fund.e. None of the above.6. All Enterprise Fund transfers are reported in an Enterprise Fund's operating statement asa. nonoperating revenues.b. other financing sources.c. special items.d. None of the above. Enterprise Funds7. Enterprise Fund transfers are reported in an Enterprise Fund's operating statement fora. &#34;free&#34; services provided to other departments.b. capital assets transferred in from other governments without compensation. 1.010tc. interfund loans that are not to be repaid from available expendable financial resources.d. None of the above.8. Depreciation expense on all of an Enterprise Fund's capital assets must be reported asexpenses in the fund's operating statement. However, expenditures to maintain certain capitalassets may be expensed in lieu of reporting depreciation. These capital assets includea. infrastructure capital assets donated to the government.b. infrastructure capital assets that meet the modified approach requirements establishedby GASB Statement No. 34.c. only infrastructure capital assets constructed or acquired prior to July 1, 1980.d. buildings.e. equipment.010Bermainf9. Enterprise Fund resources of $3,000,000 are paid yearly to the General Fund. If these pay-ments are payments in lieu of taxes (not payments for services), they should be recorded inthe Enterprise Fund asa. expenses.b. expenditures.c. other financing uses.d. reductions of revenues.e. transfers out.sigo(ab thoapproach foundalergovern10. Combining Enterprise Fund statements in the CAFR are required to include at a minimum:a. each individual Enterprise Fund.b. each individual major Enterprise Fund.c. each individual nonmajor Enterprise Fund.d. each individual Enterprise Fund used to account for activities that are required to bereported in Enterprise Funds.vities te. None of the above are required to be reported in the CAFR.

Accepted Answer

Hi student
Since there are multiple questions, we will answer only first question. 
Accounting…