Which of the Following Is True Regarding the Proprietary Fund

question 116

Multiple Choice

Which of the following is true regarding the proprietary fund financial statements?

• A) The proprietary fund financial statements include the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows.
• B) The proprietary fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Postal Rates

The charges or fees associated with sending mail and packages through the postal service.

Declined

Refers to a decrease or rejection in amount, quality, or intensity.

Maintenance Costs

Expenses associated with the upkeep and repair of equipment, buildings, or machinery to ensure their proper functioning and efficiency.

Operating Costs

Expenses associated with the day-to-day functioning of a business or project, not including the cost of goods sold.