What are the different types of proprietary funds?
A proprietary fund accounts for business-like activities that have been conducted by the government. There are two main types of proprietary funds are internal service funds and enterprise funds:
Internal service funds: Internal service funds are set up to account for goods and services provided by certain entity departments on a cost-reimbursement fee basis. It is important to note that the funds customers are internal customers.
Enterprise funds: The Enterprise fund will be set up to account for the acquisition and operation of governmental services. Unlike Internal service funds, customer of enterprise funds are generally external customers.
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What are the two required financial statements under a proprietary fund?
Proprietary fund will report their fund financial statements by applying the full-accrual basis of accounting and will apply the economic resources measurement focus. These fund financial statements will require the following financial statements: 1) The statement of net position 2) The statement of revenues, expenses, and changes in fund net position
What is a fund and what are the three types under government accounting?
Fund financial statements have different rules and should be presented separately for the three their respective basis for accounting. Reporting requirements will include both fund-based and government-wide financial statements (aka consolidated financial statements), supported by notes to the financial statements as well as supporting notes to the financial statements and required supplementary information. The 3 […]