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:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Audit Committee

A subset of a company's board of directors that oversees financial reporting and disclosure.

Proxy Solicitation

The process of collecting proxies from shareholders so that votes can be cast on behalf of those unable to attend the shareholders' meeting in person.

Proxy Statement

A document containing the information that companies are required to provide to shareholders that enables them to make informed decisions about matters that will be discussed at an annual or special shareholder meeting.