What is the basic structure of the statement of net position for proprietary funds?

The basic structure of the statement of net position for proprietary funds includes a comprehensive equation that accounts for various financial elements. The correct answer incorporates both deferred outflows and liabilities along with deferred inflows, providing a complete view of the financial position.

In proprietary funds, which follow the economic resources measurement focus and accrual basis of accounting, the net position reflects the residual interest in assets after deducting liabilities. The equation highlights the importance of including deferred outflows and deferred inflows, which represent timing differences in the recognition of revenues and expenses.

This structure ensures that all relevant elements affecting the fund's overall financial status are included, allowing stakeholders to get a clearer picture of the fund's health. By encompassing these deferred items, it acknowledges their impact on the net position and aligns with the principles outlined in the Governmental Accounting Standards Board (GASB) statements, specifically those that govern proprietary fund reporting.