In a Statement of Net Position, the Net Position of a Proprietary

question 2

Multiple Choice

In a statement of net position, the net position of a proprietary fund should be displayed in which of the following categories?

• A)Unrestricted fund balance; restricted fund balance; invested in capital assets, net of related debt.
• B)Unrestricted net position; restricted net position; invested in capital assets, net of related debt.
• C)Unrestricted net assets; restricted net assetsRestricted net assets; retained earnings; unrestricted net assets.

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Definitions:

Fixed Costs

Fixed Costs refer to business expenses that do not change, regardless of how much the business produces or sells.

Operating Cash Flow

The cash generated from a company's regular business operations, indicating its ability to cover operational costs and make new investments.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Fixed Costs

Costs that remain constant irrespective of the level of production or sales, including expenses like rent, salaries, and insurance.