Proprietary funds record the net pension liability as a fund liability.

Question

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Proprietary funds, which are used to account for activities similar to those found in a private business, record the net pension liability as a fund liability instead of as a long-term liability on the government-wide financial statements. This is because proprietary funds report on the business-type activities of the government and are intended to provide financial information to make decisions about pricing, budgeting, and other management-oriented purposes.

Proprietary Funds Record the Net Pension Liability as a Fund