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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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