Which of the Following Is false regarding Proprietary Fund Accounting

question 53

Multiple Choice

Which of the following is false regarding proprietary fund accounting?

• A) The economic resources measurement focus and accrual accounting are used.
• B) Capital assets are recorded in the accounts and depreciated over their useful lives.
• C) The Statement of Net Position must be in a classified format, with current assets separated from noncurrent assets and current liabilities separated from noncurrent liabilities.
• D) In the Statement of Net Position, the Net position is reported as either reserved or unreserved.

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Definitions:

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid in a given year and must be paid out before dividends can be distributed to common stockholders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Dividends Received

Refers to the payments received by shareholders from a company's earnings, typically distributed periodically.

Dividend Record Date

The specific date set by a corporation's board of directors after which the shareholders on record will be entitled to receive the declared dividend.