Question

When I say this

using (Entities db = new Entities())
{
    return db.TableName.AsQueryable().ToList();
}

Do I by-pass the functionality of using block since I return something, and the method exits before exiting the using block, so I think the using block will not serve to its purpose and dispose the resource.

Is this correct?

Answer 1

You are incorrect; it will be disposed.

The using statement compiles to a try / finally block that disposes the original object in the finally block.
finally blocks are always executed, even if the code inside the try block returned a value or threw an exception.