Question

Order of presentation of line items on a proprietary fund statement of revenues, expenses, and changes in fund net position:______

Answer 1

The order of presentation on a proprietary fund statement consists of operating revenues and expenses, operating income or loss, non-operating revenues and expenses, and changes in net position, among others. It follows the accrual basis of accounting and is essential knowledge in governmental accounting.

Step-by-step explanation:

The order of presentation of line items on a proprietary fund statement of revenues, expenses, and changes in fund net position typically follows this sequence:

1. Operating Revenues
2. Operating Expenses
3. Operating Income or Loss
4. Non-operating Revenues and Expenses
5. Income before Contributions and Transfers
6. Capital Contributions, Additions to Endowments, and Transfers
7. Change in Net Position
8. Net Position - Beginning of Year
9. Net Position - End of Year

This presentation follows accounting standards for proprietary funds, which are used by government entities to account for activities that are similar to those found in the private sector (such as utilities and transportation systems). These funds use the accrual basis of accounting, reflecting operations similarly to a corporate business entity's financial statements. It is crucial for students studying governmental accounting or preparing for a career in public sector finance to understand the format and composition of these financial statements.