Proprietary funds recognize .a. Expenses when the fund incurs a liability for goods or services. b. Expenditures when the fund incurs a liability for goods or services. c. Expenditures when the fund uses goods or services. d. Expenses when the fund uses goods or services.

The answer is Expenses when the fund uses goods or services.

Explanation:

A proprietary fund is used in governmental accounting to account for activities that involve business-like interactions, either within the government or outside of it.

The required financial statements for a proprietary fund are as follows:

Statement of net position,

Statement of revenues, expenses, and changes in fund net position