“Business Type Activities called Proprietary Funds (Enterprise and Internal Service Funds)” Please respond to the following:
- 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.
- 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 classmatesâ€™ responses, consider the continuing problem (the City of Austin, Texas) or perhaps from published material from your home state or city.