Which of the following represents the two types of proprietary funds?

The correct answer identifies the two types of proprietary funds as Enterprise Funds and Internal Service Funds. Proprietary funds are used in governmental accounting to account for activities that operate in a manner similar to private businesses. This means they are intended to recover costs primarily through user fees or charges for services.

Enterprise Funds are used for services offered to the public on a fee basis, such as water utilities or public transportation systems. These funds are designed to be self-sustaining, covering their operational costs through the revenues generated from those services.

Internal Service Funds, on the other hand, are used by a government to centralize certain services or functions within its own operations. Examples include a government-run motor pool or centralized printing services. These funds charge other departments or agencies for the services they provide, ensuring that the costs are allocated appropriately among the users.

The other options do not represent proprietary funds. Capital Fund and Debt Fund are not recognized types of proprietary funds in governmental accounting. The General Fund and Special Revenue Fund are types of governmental funds used to account for general government operations and specific revenue sources, respectively. Trust Fund and Agency Fund are types of fiduciary funds, which are intended to hold and manage funds for individuals, organizations, or other governments, and do not operate