A proprietary fund statement of net position report assets and liabilities in what format?
A)relative order of liquidity
B)classified (current/noncurrent)
C)by asset/liability type
D)separating capital assets and related debt for other assets and liabilities

Question

Quizplus · Accepted Answer

Proprietary fund statement of net position reports assets and liabilities in a classified format, which means they are categorized as current or noncurrent. This allows for a clear understanding of the organization's liquidity and ability to meet short-term obligations. Choice A is not the best option because relative order of liquidity may not provide a clear picture of the organization's financial health. Choice C is not the best option as it may not provide sufficient clarity on the liquidity of assets and liabilities. Choice D is not the best option because it separates capital assets and related debt, making it difficult to understand the organization's overall financial position.

A Proprietary Fund Statement of Net Position Report Assets and Liabilities