Which of the Following Is False Regarding Proprietary Funds Financial

question 71

Multiple Choice

Which of the following is false regarding proprietary funds financial statements?

• A) Major internal service funds are separately reported.
• B) Discretely presented component units that are business-type in nature are not reported; those units would be in the government-wide statements only.
• C) A classified approach must be used when preparing the Statement of Net Assets where current assets are displayed separately from long-term assets and current liabilities are displayed separately from long-term liabilities.
• D) With respect to the Statement of Net Assets, the net assets are displayed in the same three categories as in the government-wide statements.

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Definitions:

Integumentary System

The organ system comprised of the skin and its appendages, serving to protect the body from various kinds of damage, such as loss of water or abrasion from outside.

Infections

The invasion and multiplication of microorganisms such as bacteria, viruses, and fungi in the body, which can cause illness and disease.

Hormones

Chemical messengers produced by glands in the endocrine system that regulate processes such as growth, metabolism, and reproductive functions.

Veins

Blood vessels that carry blood toward the heart, typically containing valves to prevent backflow.