What Basis of Accounting Is Used by Proprietary Funds

question 17

Multiple Choice

What basis of accounting is used by proprietary funds?

• A)Modified accrual accounting
• B)Accrual accounting
• C)Cash basis accounting
• D)Fair value accounting

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Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms that enables the conversion of food to energy, the elimination of nitrogenous wastes, and the synthesis of complex molecules.

Neurosecretory Neurons

Specialized neurons that produce and release hormones into the blood, bridging the nervous system and endocrine system.

Posterior Pituitary

The rear portion of the pituitary gland, which releases hormones such as oxytocin and vasopressin into the bloodstream.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.