A$.$ Proprietary funds are a type of funds used by governments. A reasonable definition of proprietary funds would be

Funds whose purpose is to maintain the assets through cost reimbursement by users or partial cost recovery from users and periodic infusion of additional assets.

Funds whose principal must remain intact.

Funds that handle all cash receipts and disbursements not required to be accounted for in another fund.

Funds that cash receipts and disbursements related to the payment of interest and principal on long$-$term debt.

None of the above.

B$.$ Government transactions are recorded in one or more funds designed to emphasize control and

budgetary limitations$.$ A fund may be established for which of the following specific purposes?

Highway maintenance

Parks

Debt repayment

Endowment fund

All of theabove

C$.$ Which of the following is not a minimum requirement for general$-$purpose external financial

statements$-$state and local governments?

Statement of cashflow

Management discussion and analysis

Government$-$widefinancialstatements

$4.$ Fund financial statements

Notes to the financial statements

D$.$ For state and local governments, the MD&A must include all but which of the following?

An objective discussion of the basic financial statements and condensed financial

information comparing current and prior years

Ananalysis of the overall financial position and results of operations

Ananalysis of balances and transactions of individual funds

Ananalysis of significant variations between the original and final budget and the final budget and actual results for the general fund

Known facts, decisions, or conditions expected to have an impact on financial position or results of operationsresults of operations

E$.$ Which of the following statements is not true?

The government$-$wide financial statements are to be prepared on an accrual basis for all of the government's activities.

Under GASB Statement No$\mathrm{.}34,$ the government entity will continue to present fund statements.

Under GASB Statement No$\mathrm{.}34,$ government$-$wide statements are superior to fund statements.

Government$-$wide financial statements are prepared on an accrual basis.

Government transactions are recorded in one or more funds designed to emphasize

central and budgetary limitations$.$