Which item would appear LAST in the proprietary fund statement of revenues, expenses, and changes in net assets?

In the context of a proprietary fund statement of revenues, expenses, and changes in net assets, the order of reporting items is important for clarity and compliance with accounting standards. The last item that typically appears in this statement is transfers.

Transfers refer to the amounts that are moved between funds, which can represent both inflows and outflows. Their placement at the end of the statement allows for a clear understanding of the net position after considering all revenues, expenses, and other significant items such as capital contributions, special items, and extraordinary items. By positioning transfers at the bottom, stakeholders can see the net assets' overall change and how it is affected by internal resource allocations that do not represent operational performance.

In contrast, capital contributions, extraordinary items, and special items are reported earlier in the statement as they relate to specific activities or events within the reporting period, impacting net assets before the overall changes from fund transfers are detailed. This structured approach ensures that the financial statement provides a coherent narrative of the fund's activities throughout the reporting period.