Which of the following funds is a proprietary fund? i. Internal service fund.
ii. Enterprise fund.
iii. Capital projects fund.
A) I and II
B) II and III
C) I and III
D) None of the above

Question

Quizplus · Accepted Answer

Proprietary funds are used by a government to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful. They include both internal service funds, which provide services to other departments or agencies within the government, and enterprise funds, which provide services to the public for a fee. Capital projects funds are not considered proprietary funds; they are governmental funds used to account for financial resources used for the acquisition or construction of major capital facilities.

Which of the Following Funds Is a Proprietary Fund? I