On the Statement of Net Assets,in place of stockholders' equity,proprietary funds report

Question

Quizplus · Accepted Answer

Proprietary funds report net assets instead of stockholders' equity. This is because proprietary funds are not owned by individual stockholders, but instead are self-sustaining entities that may retain earnings and accumulate assets over time. Retained earnings, restricted cash, and unrestricted cash are all components of net assets but do not fully represent the overall financial position of the fund. Therefore, the best choice is D - Net Assets.

On the Statement of Net Assets,in Place of Stockholders' Equity,proprietary