A Governmental Entity Reports Its Utility Services Provided to the Citizens

Multiple Choice

A governmental entity reports its utility services provided to the citizens in a proprietary fund.Which of the following best represents an acceptable election of accounting standards for the proprietary fund? Unless the FASB pronouncement conflicts with or contradicts a GASB pronouncement, a propriety fund must adhere to

A) All FASB pronouncements.
B) All FASB pronouncements issued prior to November 30, 1989, as well as any post-November 30, 1989 pronouncements specifically adopted by GASB.
C) It must apply only GASB standards.
D) It may elect either a or b.