Which Financial Statements Are Required for Proprietary Funds

question 39

Multiple Choice

Which financial statements are required for proprietary funds?

• A) Statement of net assets; Statement of revenues, expenses, and changes in fund net assets; Statement of cash flows.
• B) Budgetary comparison schedule; Statement of revenues, expenditures, and changes in fund balance; Statement of net assets.
• C) Statement of net assets; Statement of revenues, expenditures, and changes in fund balances; Statement of cash flows.
• D) Statement of net assets; Statement of revenues, expenses, and changes in fund net assets;

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Definitions:

Variable Costs

Expenses that change in proportion with the level of business activity or production volume, such as raw materials and direct labor costs.

Target Income

The desired profit level that a company aims to achieve within a specific period, often used in budgeting and financial planning.

Contribution Margin

The amount of revenue remaining after subtracting variable costs, used to cover fixed costs and generate profit.

Mixed Costs

Expenses that have both a fixed and variable component, changing in total with the level of activity but also including a constant element.