Question: Business accounting is governed by the pronouncements of the Financial
Business accounting is governed by the pronouncements of the Financial Accounting Standards Board (FASB). Enterprise funds are generally accounted for using the accounting principles applicable to businesses. Must a government therefore adhere to all pronouncements of the FASB in accounting for its enterprise funds? Explain. What about in accounting for its internal service funds?
Answer to relevant QuestionsAlthough proprietary fund accounting is similar to business accounting, there are considerable differences in standards pertaining to the statement of cash ﬂows. What are the main differences?What is a service concession arrangement? Why do governments enter into these agreements?William County opted to account for its duplication service center in an internal service fund. Previously the center had been accounted for in the county's general fund. During the ﬁrst month in which it was accounted for ...A school district establishes a vehicle repair shop that provides service to other departments, all of which are accounted for in its general fund. During its ﬁrst year of operations the shop engages in the following ...What follows are the statement of revenues, expenses, and changes in net position, and the statement of cashﬂows for Tucson, Arizona's ﬂeet services internal service fund.1. How do you account for the difference between ...
Post your question