Question & Answer: Proprietary funds…..

Proprietary funds

(1) are required to present budget-actual statements in the fund statements.

(2) are not required to disclose contributions of capital assets on the Cash Flow Statement.

(3) are required to present reconciliation between the Statement of Revenues, Expenses, and Changes in Fund Net Assets and the Cash Flow Statement.

(4) are required to present a Statement of Revenues and Expenses and Balance Sheet.

Expert Answer

 

Answer:- (3)

Proprietary funds are required to present reconciliation between the Statement of Revenues, Expenses, and Changes in Fund Net Assets and the Cash Flow Statement.

Explanation:-

The Statement of Net position, Statement of revenue, expenses and changes in Net position and the Statement of cash flows are the financial statements used to prepare proprietary funds. Proprietary fund reporting focuses on determination of operating income, changes in Net position, financial position and cash flows.

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