Which of the Following Is True Regarding the Proprietary Fund

question 38

Multiple Choice

Which of the following is true regarding the proprietary fund financial statements?

• A) The Statement of Net Assets (or Balance Sheet) reflects equity as contributed equity and retained earnings
• B) Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements
• C) Statements include the Statement of Net Assets (or Balance Sheet), Statement of Revenues, Expenses and Changes in Fund Net Assets and Statement of Cash Flows
• D) The Statement of Cash Flows may be prepared using either the direct or indirect methods

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Definitions:

Mental Illness

A broad category of conditions affecting a person’s thinking, emotion, and behavior, which may cause distress and difficulty in functioning.

Managed Care Programs

Health insurance plans that contract with healthcare providers and medical facilities to provide care for members at reduced costs and oversee the utilization of healthcare services.

Drug Therapy

The treatment of disease by administration of drugs or medications, with the intent to cure or reduce symptoms.

Psychogenic Causes

Refers to psychological factors that lead to physical symptoms or diseases, without any traceable physical cause.