Which of the following would be reflected in the operating statement of a proprietary fund?
A) Accrual of interest expense.
B) Repayment of the principal of debt.
C) Issuance of debt.
D) Purchase of a capital asset.

Question

Quizplus · Accepted Answer

Interest expense is recognized in the operating statement of a proprietary fund because these funds use the accrual basis of accounting, which includes recognizing expenses when they are incurred, not when they are paid.

Which of the Following Would Be Reflected in the Operating