The financial statements of proprietary funds are similar to business enterprises with the exception that proprietary funds do not

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Proprietary funds are usually used to account for activities that are financed primarily by user fees, such as utility services or airport operations. As such, they do not report property taxes because they are not a significant source of revenue for these funds. However, proprietary funds do report fixed assets, separate current and noncurrent assets, and report noncurrent liabilities, just like business enterprises.

The Financial Statements of Proprietary Funds Are Similar to Business