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

Question

Quizplus · Accepted Answer

The statement of revenues, expenses, and changes in net position is specific to proprietary funds, which operate similarly to private sector businesses, and thus report their financial activities in this manner. Governmental funds use different reporting formats, focusing on sources and uses of financial resources.

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