Which Financial Statements Are Required for a Proprietary Fund

question 66

Multiple Choice

Which financial statements are required for a proprietary fund?

• A) Income statement, Statement of Net Assets and Statement of Cash Flows
• B) Statement of Revenues, Expenses and Changes in Fund Balance, Statement of Net Assets and Statement of Cash Flows
• C) Income statement and Balance sheet
• D) Statement of Revenues, Expenses and Changes in Fund Balance and Statement of Net Assets

---

Definitions:

Common-Size Balance Sheets

Financial statements that present all items in percentage terms of the total assets for easy comparison.

Total Assets

Total assets refer to the sum of all assets owned by a person or entity, reported on the balance sheet, which includes tangible and intangible items of value.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as stockholders' equity or owners' equity.

Liquid Assets

Assets that can be quickly and easily converted into cash with minimal impact on their value.