Which of the Following Statements Is True Regarding Proprietary Funds

question 129

Multiple Choice

Which of the following statements is true regarding proprietary funds?

• A) Proprietary funds use the modified accrual basis of accounting.
• B) Accruals and deferrals common to business accounting are recorded in proprietary funds.
• C) GASB standards require budget-actual reporting for proprietary funds.
• D) The purchase of a capital asset is recorded as an expenditure in proprietary funds.

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Definitions:

Process-Focused Facilities

Facilities designed to manage and improve processes that are not product-specific but rather focused on the sequence of operations to be performed, often requiring specialized equipment or skills.

Repetitive Facilities

Facilities designed for high-volume, repetitive operational processes, focusing on efficiency and consistency in production.

JIT

Just-In-Time, a management philosophy aimed at eliminating waste by receiving goods only as they are needed in the production process.

Kanban

A scheduling system for lean manufacturing and just-in-time manufacturing (JIT), signaling the need to move materials within a production facility or to the facility from the external supplier.