Which of the Following Is True Regarding the Proprietary Funds

question 5

Multiple Choice

Which of the following is true regarding the proprietary funds statements?

• A) Major enterprise and internal service funds are reported in separate columns; a column is presented for all non-major enterprise and internal service funds (combined), and a total column is presented.
• B) Financial statements include a Statement of Net Assets (or balance sheet), Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Standard Deviation

Standard deviation measures the amount of variation or dispersion of a set of values, indicating the volatility or risk associated with a particular investment.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than one indicates greater volatility.

Required Rate of Return

The minimum annual percentage return an investor expects to achieve from an investment, considering its risk.