In short
Proprietary funds account for a government's business-type activities that charge fees for goods or services. There are two kinds: enterprise funds (serving the public) and internal service funds (serving other departments).
Key takeaways
- They use the economic resources focus and full accrual basis, like a business.
- They report capital assets, depreciation and long-term debt.
- Their statements include a statement of cash flows.
Where it's tested
FAR: Governmental Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Governmental funds use which measurement focus and basis of accounting?