Restricted Net Assets for a Proprietary Fund

question 77

Multiple Choice

Restricted Net Assets for a proprietary fund:

• A) Are net resources whose use is restricted by law
• B) Are reported net of depreciation
• C) Are reported net of accumulated depreciation and any outstanding debt used to acquire the asset
• D) Are net resources whose use is restricted by creditors, grantors or other governments.

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Definitions:

Express Warranty

A warranty made in words, either oral or written.

Express Warranty

A written guarantee provided by a seller about the quality or nature of a product, promising specific standards or conditions.

Implied Warranty

A legal assumption in commerce that goods are reasonably fit for the general purpose for which they are sold, even if not expressly stated.

Operation of Law

A way in which rights or liabilities are automatically transferred or changed due to existing legal rules, rather than the action of the parties.