Which of the following is a proprietary fund?
A) Investment trust
B) Permanent
C) Special revenue
D) Internal service

Question

Quizplus · Accepted Answer

Internal service funds are used to account for services provided by one department to other departments within the same government entity. They are considered proprietary funds because they are used to provide services on a cost-recovery basis, rather than generating revenue for the government entity as a whole. The other options are not proprietary funds - an investment trust is an external entity that pools investor funds for investment purposes, permanent funds are used to account for endowment assets or other assets that are intended to be held in perpetuity, and special revenue funds are used to account for specific revenue sources designated for particular purposes (such as gasoline taxes being used for road maintenance).

Which of the Following Is a Proprietary Fund