Which of the following is a distinguishing characteristic of proprietary funds?
A)they recognize revenues when they are measurable and available
B)they always earn sufficient revenues to cover their expenses
C)they charge fees for the services they provide
D)they are legally prohibited from selling services to other governmental agencies

Question

Quizplus · Accepted Answer

Proprietary funds are government-operated businesses that charge fees for the services they provide. This distinguishes them from governmental funds, which do not charge fees and primarily rely on taxes and other sources of revenue. Option A is true for both proprietary and governmental funds, and option B is not always true as proprietary funds can experience deficits. Option D is not a characteristic of proprietary funds.

Which of the Following Is a Distinguishing Characteristic of Proprietary