Long-term debt paid from proprietary funds is reported as a liability in
A) The proprietary fund Statement of Net Assets
B) The government-wide Statement of Net Assets
C) Both A and B
D) Neither A nor B

Question

Quizplus · Accepted Answer

Long-term debt paid from proprietary funds is reported as a liability in both the proprietary fund Statement of Net Assets and the government-wide Statement of Net Assets. This is because proprietary funds are a component of the government's economic resources and are required to be reported in the government-wide financial statements along with other governmental activities. Therefore, the long-term debt of proprietary funds is consolidated with the long-term debt of other governmental activities in the government-wide financial statements.

Long-Term Debt Paid from Proprietary Funds Is Reported as a Liability