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The Financial Statements of a Proprietary Fund Are Similar to Those

Question 4

Multiple Choice

The financial statements of a proprietary fund are similar to those of a business enterprise except for


A) proprietary funds do not report income taxes on the operating statement.
B) proprietary funds do not have paid-in capital or capital stock.
C) proprietary funds use modified accrual accounting.
D) proprietary funds may have account titles such as due from general fund.

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