In Proprietary Fund accounting,which of the following statements are true?
A)materials and supplies are recognized as expenditures when purchased
B)materials and supplies are recognized as expenses when consumed
C)capital assets are considered as expenditures when they are acquired
D)capital assets are not recorded in proprietary funds

Question

Quizplus · Accepted Answer

In proprietary fund accounting, materials and supplies are recognized as expenses when they are consumed. Capital assets, on the other hand, are recorded as assets and depreciated over their useful lives, rather than being considered as expenditures when they are acquired.

In Proprietary Fund Accounting,which of the Following Statements Are True