A Proprietary Fund of a Governmental Entity Has Donor-Restricted Assets

question 10

Multiple Choice

A proprietary fund of a governmental entity has donor-restricted assets on its balance sheet.Which of the following best describes where and how those assets will generally be displayed?

• A)In a separate restricted asset category on the balance sheet.
• B)Intermingled with other assets on the balance sheet.
• C)Intermingled with other assets on the balance sheet but footnoted.
• D)In a separate restricted fund.
• Use the following information to answer #7 and #8.
• The City of Brockton voted to establish an internal service fund to account for its printing services.The City transferred $500,000 cash from the General Fund to the newly created internal service fund.

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Definitions:

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.

Not-For-Profit Entities

Organizations that operate for purposes other than generating profit, often focusing on social, educational, or charitable activities.

Objectives

Specific, measurable goals set by a business or individual to guide activities and measure performance effectively.

Budgets

Financial plans that estimate revenue and expenses over a specified future period, guiding spending and investment decisions.