A proprietary fund of a government has some donor-restricted assets. Which of the following best describes where and how those assets will generally be displayed in the fund's financial statements?
A) In a separate restricted asset category on the statement of net position.
B) Intermingled with other assets on the statement of net position.
C) Intermingled with other assets on the statement of net position, but footnoted.
D) In a separate restricted fund.

Question

Quizplus · Accepted Answer

Donor-restricted assets in a proprietary fund are typically displayed in a separate restricted asset category on the statement of net position to clearly distinguish them from unrestricted assets.

A Proprietary Fund of a Government Has Some Donor-Restricted Assets