Which of the following is true regarding the proprietary fund financial statements?
A) The proprietary fund financial statements include the Statement of Net Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, 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.

Question

Quizplus · Accepted Answer

Both statements (A and B) are true regarding the proprietary fund financial statements. The Statement of Net Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and the Statement of Cash Flows are included in the proprietary fund financial statements. Also, these financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. Therefore, option C is correct.

Which of the Following Is True Regarding the Proprietary Fund