Business Type Proprietary Funds

“Business Type Activities called Proprietary Funds (Enterprise and Internal Service Funds)” Please respond to the following: • o In Chapter 9, we learn that business-type activities of governments are accounted for in a fashion similar to those carried out by businesses. It is easy to understand that accounting for these services is done on a full accrual basis of accounting; however, give your opinion on the way in which this integrates with the modified basis of accounting used by governmental funds. Use the textbook and GASB materials to support your position. o Analyze the various types of business-type funds used in governmental units, and provide an example of when each is appropriate. In developing your initial discussion post and in commenting on your classmates’ responses, consider the continuing problem (the City of Austin, Texas) or perhaps from published material from your home state or city.

 

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