Long-term debt to be paid from proprietary funds is reported as a liability in
A) the proprietary fund Statement of Net assets or Net Position.
B) the government-wide Statement of Net assets or Net Position.
C) both A and B.
D) neither A nor B.

Question

Quizplus · Accepted Answer

Proprietary and government-wide statements are both prepared using the economic resource measurement focus and accrual accounting. Balance sheets prepared using the economic resource focus reports the balances in fixed assets and long-term liabilities. No adjustment is necessary when proprietary funds are combined with other funds in the government-wide statements.

Long-Term Debt to Be Paid from Proprietary Funds Is Reported