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:

Collector

An individual or entity that gathers items of a particular type, often for personal interest or investment purposes, or in financial contexts, one who collects payments.

Misleading Claims

Statements or representations that are false or deceptive, usually made to entice customers or influence stakeholders.

FTC

refers to the Federal Trade Commission, a U.S. federal agency tasked with protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair competition, deceptive advertising, and monopolies, empowering the Federal Trade Commission to regulate and enforce provisions against these practices.