Accounting Questions
Accounting Questions California State University Northridge Accounting 475 Spring 2022 Homework 1 Question 1
- Which of the following is not an accounting characteristic or focus of proprietary funds?
a. The focus is on economic resources measurement
b. Accrual accounting is used
c. Fixed assets and long term debt are reportd on the statement of net position.
d. Budgetary accounts are reported in internal service funds.
Answer
D. Budgetary accounts are reported in internal service funds.
Explanation.
Proprietary funds consist of internal service funds and enterprise funds. The accounting for proprietary funds is similar to commercial accounting. An internal service fund does not report budgetary accounts or encumbrances.