The comprehensive annual financial report (CAFR) of a government should contain a statement of revenues, expenses, and changes in fund net position for:
A) Both proprietary and governmental funds.
B) Proprietary but not governmental funds.
C) Governmental but not proprietary funds.
D) Proprietary and fiduciary funds.

Question

Quizplus · Accepted Answer

The statement of revenues, expenses, and changes in fund net position is specific to proprietary funds, which operate similarly to private sector businesses, focusing on the determination of net income, financial position, and cash flows. Governmental funds use different financial statements that focus on sources and uses of financial resources.

The Comprehensive Annual Financial Report (CAFR) of a Government Should