Which of the Following Is Not Correct with Respect to Proprietary

question 89

Multiple Choice

Which of the following is not correct with respect to proprietary funds?

• A) Proprietary funds are used to account for activities similar to those often engaged in by commercial businesses.
• B) Users of goods or services are charged amounts at least sufficient to cover the costs of providing the goods or services. Thus, in the pure case, proprietary funds are self-supporting.
• C) Budgets may be prepared for proprietary funds to facilitate management of fund activities, but GASB standards do not require budget-actual reporting.
• D) Proprietary funds record only current financial resources and liabilities that will be settled with current financial resources.

---

Definitions:

Condom Catheter

A type of external catheter for men that is similar to a condom and is used to manage urinary incontinence.

Urinary Tract Infection

An infection involving any part of the urinary system, including the bladder, kidneys, ureters, and urethra, often causing pain and the urgent need to urinate.

Hyaline Casts

Microscopic cylindrical structures found in urine, typically consisting of a mucoprotein secreted by renal tubules, indicative of normal or mild renal irritation.

Irritability

A state of increased sensitivity or reactivity to stimuli, often resulting in quick tempered or grumpy responses.