Question

Proprietary funds recognize _________.a. Expenses when the fund incurs a liability for goods or services. b. Expenditures when the fund incurs a liability for goods or services. c. Expenditures when the fund uses goods or services. d. Expenses when the fund uses goods or services.

Answer 1

Answer:

The answer is Expenses when the fund uses goods or services.

Explanation:

A proprietary fund is used in governmental accounting to account for activities that involve business-like interactions, either within the government or outside of it.

The required financial statements for a proprietary fund are as follows:

Statement of net position,

Statement of revenues, expenses, and changes in fund net position