_____ Regarding external financial reporting for governmental units, which of the following financial statements is not presented in the fund-based statements?

Question

Quizplus · Accepted Answer

A: c. Balance sheet-Proprietary Funds and Fiduciary Funds
 In the context of governmental accounting, fund-based financial statements are prepared to report on the financial position and results of operations for different types of funds within the governmental entity. There are three main categories of funds in governmental accounting: governmental funds, proprietary funds, and fiduciary funds.
a. Balance sheet-Governmental Funds: This statement is indeed part of the fund-based financial statements. It reports on the financial position of the governmental funds, which include the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.
b. Balance sheet-Proprietary Funds: This statement is also part of the fund-based financial statements. Proprietary funds are used to account for a government's business-type activities (such as utilities and public transportation) and include enterprise funds and internal service funds.
c. Balance sheet-Proprietary Funds and Fiduciary Funds: While the balance sheet for proprietary funds is included in the fund-based financial statements, the balance sheet for fiduciary funds is not. Fiduciary funds are used to account for resources held by the government in a trustee or agency capacity for others and cannot be used to support the government's own programs. Therefore, the fiduciary funds' financial statements are not considered part of the fund-based financial statements but are instead presented separately.
d. None of the above: This option is incorrect because, as explained, the balance sheet for fiduciary funds is not included in the fund-based financial statements.
Therefore, the correct answer is c. Balance sheet-Proprietary Funds and Fiduciary Funds, as the fiduciary funds' financial statements are not part of the fund-based financial statements.

_____ Regarding External Financial Reporting for Governmental Units, Which of the Following