The Financial Statements of a Proprietary Fund Are Similar to Those

question 38

Multiple Choice

The financial statements of a proprietary fund are similar to those of a business enterprise except for

• A)proprietary funds do not report income taxes on the operating statement.
• B)proprietary funds do not have paid-in capital or capital stock.
• C)proprietary funds use modified accrual accounting.
• D)both A and B

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Definitions:

Glomerulus

Capillary network within the glomerular capsule of a nephron.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, essential for maintaining the flow of blood through the body.

Filtration

A process that separates solid particles from liquids or gases using a filter medium that permits the fluid to pass but not the solid particles.

Nitrogenous Waste

Waste products that contain nitrogen, primarily produced by the metabolic breakdown of proteins and nucleic acids, and excreted by organisms.