Restricted Net Position for a Proprietary Fund Is

question 7

Multiple Choice

Restricted Net Position for a proprietary fund is:

• A) Net resources whose use is restricted by users of the services.
• B) Reported net of depreciation.
• C) Reported net of accumulated depreciation and any outstanding debt used to acquire the asset.
• D) Net resources whose use is restricted by creditors, grantors or laws or regulations of other governments.

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Definitions:

External Users

Individuals or entities outside a company, such as investors, creditors, regulators, and customers, who use its financial information for making decisions.

External Auditing

The examination of financial records and statements by an independent third party, to ensure accuracy and adherence to accounting standards.

Private Accountant

An accountant employed by a single firm, business, or organization to handle its internal financial matters.

Reported Information

The data and facts that a company officially communicates to stakeholders, often through financial statements and reports.