1.Proprietary funds are reported on the accrual basis which is a departure from the modified accrual which is for the governmental funds. Why is that so or not?

A.Enterprise funds are reported on the accrual basis need to present their financial statements like any other for-profit entity where expenses are properly matched with revenues.

B.Enterprise funds and internal services are required under GASB to be on the accrual basis.

C.Enterprise funds and internal service funds need to present their financial statements because of FASB standards.

D.Enterprise funds and internal service funds have the option to being on the accrual method or the modified accrual basis.