Proprietary Funds Are Required to Have a Statement of Revenues

question 26

True/False

Proprietary funds are required to have a Statement of Revenues, Expenses, and Change in Fund Net Position, a Statement of Net Position, but not a Statement of Cash Flows.

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Definitions:

Days' Sales

Often refers to days' sales outstanding (DSO), which measures the average number of days it takes a company to collect payment after a sale has been made.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Retail Method

A technique used by retailers to value inventory based on the retail price of goods, typically used to estimate ending inventory and cost of goods sold.

Inventory Cost

The total cost associated with holding and managing inventory, including costs of storage, insurance, deterioration, and obsolescence.