Question

Which of the following is true regarding the Statement of Net Position for proprietary funds?

a. Either the net position format or the balance sheet
format may be used.
b. Major enterprise and internal service funds are to
be reported separately.
c. The two categories of net position are: reserved
and unreserved.
d. A government may report assets in order of
liquidity or as classified between current and
noncurrent.

Answer 1

The Statement of Net Position for proprietary funds can be presented using either the net position format or the balance sheet format. Major enterprise and internal service funds should be reported separately. The two categories of net position are reserved and unreserved.

Step-by-step explanation:

The Statement of Net Position for proprietary funds can be presented using either the net position format or the balance sheet format. This allows for flexibility in how the information is displayed.

Major enterprise and internal service funds should be reported separately on the Statement of Net Position.

The two categories of net position are reserved and unreserved. Reserved net position represents amounts that are legally restricted for specific purposes, while unreserved net position represents amounts that are not restricted and can be used for any purpose.

A government may report assets in order of liquidity or as classified between current and noncurrent on the Statement of Net Position.