What is Business-type activities?
In short
In the government-wide statements, business-type activities, financed mainly by fees charged to users such as water utilities and airports, are reported separately from governmental activities, which are financed mainly by taxes.
Key takeaways
- They usually come from enterprise funds.
- Internal service funds are usually reported with governmental activities.
- Both columns use the economic resources focus and full accrual basis.
Where it's tested
BAR: Government-Wide Statements & the Annual Comprehensive Financial Report — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In reconciling total governmental fund balances to net position of governmental activities, which adjustment is required?