Which of the following may properly be reported as a component of net position in the proprietary fund statement of net position?

• A. Unrestricted net position
• B. Restricted net position
• C. Net investment in capital assets
• D. Current assets

Answer: (B)

In a proprietary fund's statement of net position, net position is shown in three components: net investment in capital assets, restricted net position, and unrestricted net position. Restricted net position represents resources whose use is constrained by external parties, such as grantors, creditors, or laws. Because these constraints limit how the resources can be used, they are recorded as a separate component of net position. The other components—net investment in capital assets (the portion tied up in capital assets, net of related debt) and unrestricted net position (resources available for any purpose)—also appear as components, but current assets are assets, not a component of net position.