In the Statement of Net Assets, the net assets of a proprietary fund should be displayed in which of the following categories?
A)Unrestricted Fund Balance; Restricted Fund Balance, Invested in Capital Assets, Net of Related Debt.
B)Unrestricted Net Assets; Restricted Net Assets; Invested in Capital Assets, Net of Related Debt.
C)Unrestricted Net Assets; Restricted Net Assets; Net Assets Available for Use.
D)Net Assets Available for Use.

Question

Quizplus · Accepted Answer

The net assets of a proprietary fund should be displayed in three categories: unrestricted net assets, restricted net assets, and invested in capital assets, net of related debt. This is consistent with the format of the Statement of Net Assets for proprietary funds as required by Generally Accepted Accounting Principles (GAAP). Option A does not include a "restricted net assets" category, while option C combines "restricted net assets" and "net assets available for use" into one category. Option D only includes "net assets available for use" and does not include the other necessary categories. Therefore, option B is the best choice.

In the Statement of Net Assets, the Net Assets of a Proprietary