In the Statement of Net Assets, the net assets of a proprietary fund should be displayed in which of the following categories?

Question

Quizplus · Accepted Answer

The net assets of a proprietary fund should be classified as unrestricted net assets, restricted net assets, and invested in capital assets net of related debt. This is in accordance with GASB Statement No. 34, which requires the presentation of the net assets of proprietary funds in this manner. Unrestricted net assets are those that are not subject to any external restrictions, while restricted net assets are held for specific purposes as stipulated by external parties or legal restrictions. Invested in capital assets net of related debt refers to the portion of net assets that are invested in capital assets, less any outstanding debt related to those assets.

In the Statement of Net Assets, the Net Assets of a Proprietary