In proprietary accounting, an expense may be charged in the current period even though the appropriation that funded the expense was charged in a previous period.

Question

Quizplus · Accepted Answer

The federal government uses the accrual basis of accounting in its proprietary accounts. For example, when materials inventory is used, a proprietary entry is needed to record the program cost and reduction of the asset. The materials may be used in a period after the appropriation that funded the expense was charged.

In Proprietary Accounting, an Expense May Be Charged in the Current