To compute the operating ratio-enterprise funds,one would need to look in the CAFR for the:
A) Government-wide Statement of Net Assets.
B) Proprietary funds Statement of Revenues, Expenses, and Changes in Fund Net Assets.
C) Both A and B above.
D) Neither A nor B above.

Question

Quizplus · Accepted Answer

The operating ratio for enterprise funds is calculated using the Statement of Revenues, Expenses, and Changes in Fund Net Assets for proprietary funds. Therefore, option B, which refers to this statement, is the correct choice. Option A refers to the Government-wide Statement of Net Assets, which provides information on the overall financial position of the government, and is not specifically related to enterprise funds. Option C is incorrect because it includes both A and B, when only B is required. Option D is incorrect because there is at least one relevant statement in the CAFR, as outlined in option B.

To Compute the Operating Ratio-Enterprise Funds,one Would Need to Look