What measurement focus applies to proprietary funds?

Proprietary funds, which include enterprise funds and internal service funds, utilize the economic resources measurement focus. This means that these funds account for all assets and liabilities, not just those available for immediate expenditures. The economic resources focus emphasizes the full accrual basis of accounting, where revenues are recognized when earned and expenses are recognized when incurred, regardless of when cash movements occur. This approach provides a more comprehensive picture of the financial condition and performance of the proprietary funds.

In contrast, other measurement focuses, such as current financial resources, primarily consider only the available financial resources that are expected to be collected in the near term, which is not applicable to proprietary funds. Short-term financial position and operational capacity are also not relevant for proprietary funds compared to the broader view provided by the economic resources focus, which encompasses all economic benefits.