Which of the following statements is correct?

A. Governmental funds must prepare a Statement of Revenue, Expenditures and Changes in Fund Balance, Statement of Fund Balance and Statement of Cash Flows. RSI is optional.

B. Fiduciary funds must prepare a Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets, Statement of Cash Flows and RSI.

C. Government-wide statements include data from Fiduciary and Proprietary Funds.

D. Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows.

Question

Business

Nancy Wang

9 November, 07:37

Which of the following statements is correct?

A. Governmental funds must prepare a Statement of Revenue, Expenditures and Changes in Fund Balance, Statement of Fund Balance and Statement of Cash Flows. RSI is optional.

B. Fiduciary funds must prepare a Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets, Statement of Cash Flows and RSI.

C. Government-wide statements include data from Fiduciary and Proprietary Funds.

D. Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows.

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Answers (1)

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Devan Marshall · Answer 1

D. Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows.

Explanation:

Remember, proprietary funds are still under the regulation of the IRS and thus are required to prepare account statements of their revenue, expenses, net position and cash flows.

This proprietary funds consist of a pool of money and assets owned by investors and customers and are usually managed by financial institutions such as a bank.