Which of the Following Describes Proprietary Funds

question 15

Multiple Choice

Which of the following describes proprietary funds?

• A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens.
• B) Funds used to account for a government's ongoing activities that are similar to those operated by for-profit organizations.
• C) Funds used to account for monies held by the government in a trustee or agency capacity.
• D) Funds used to account for all financial resources except those required to be accounted for in another fund.
• E) Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects.

---

Definitions:

Product Market

A marketplace where final goods or services are bought and sold by consumers, businesses, and the government.

Laissez-Faire Capitalism

A hypothetical economic system in which the government’s economic role is limited to protecting private property and establishing a legal environment appropriate to the operation of markets in which only mutually agreeable transactions take place between buyers and sellers; sometimes referred to as “pure capitalism.”

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.

Total Output

The total amount of goods or services produced by an economy, industry, company, or individual over a specific period.