A proprietary fund of a governmental entity has donor-restricted assets on its balance sheet.Which of the following best describes where and how those assets will generally be displayed?
A)In a separate restricted asset category on the statement of net assets.
B)Intermingled with other assets on the statement of net assets.
C)Intermingled with other assets on the statement of net assets but footnoted.
D)In a separate restricted fund.

Question

Quizplus · Accepted Answer

Donor-restricted assets will typically be displayed in a separate restricted asset category on the statement of net assets. This provides transparency and clarity for readers to understand the nature and purpose of the restricted funds.

A Proprietary Fund of a Governmental Entity Has Donor-Restricted Assets