In which financial statement do operating revenues typically appear for proprietary funds?

Operating revenues for proprietary funds are reported in the statement of revenues, expenses, and changes in net position. This financial statement is specifically designed to reflect the financial performance of proprietary funds, which are used by government entities to account for activities that operate much like a commercial business.

Proprietary funds include enterprise funds and internal service funds, and their primary purpose is to provide goods and services to the public or other departments for a fee. As such, they generate operating revenues, which are essential for assessing the fund's performance. This statement captures not only the revenues earned from operations but also the expenses incurred, thereby highlighting the changes in net position over a reporting period.

The critical nature of this statement lies in its focus on operating results, making it distinct from other financial statements that serve different purposes, such as the statement of cash flows (which does not provide detailed revenue and expense information) or the statement of financial position (which is focused on assets, liabilities, and equity at a specific point in time). Overall, the statement of revenues, expenses, and changes in net position provides a comprehensive view of a proprietary fund's financial health, specifically regarding its operational activities.