Question

One or more of the objectives of proprietary funds is/are?

            A. That the fund needs to be run as a business of the jurisdiction.

            B. That the fund must use the accrual basis of accounting.

            C. That the fund is unique because it has a profit motive where administrative

                  expenses are covered by the receipt of revenues.

            D. All of the above.

Answer 1

Answer-:

Accounting for proprietary funds is
similar to that of investor-owned
businesses.
Proprietary funds focus on the flow of
economic resources recognized on the
accrual basis of accounting.
These funds account for all assets and
liabilities related to their operations,
both short-term and long-term.

In governmental accounting, Proprietary funds is a business-like fund of a state or local government. Examples of proprietary funds include enterprise funds and internal service funds. Enterprise funds provide goods or services to the general public for a fee. Internal service funds account for goods and services provided by one department or agency to another department or agency of the governmental unit (or to other governmental units) on a cost-reimbursement basis.

So, the correct answer is (b.)

Please give a thumbs up. Thankyou....