Describe the characteristics of proprietary fund.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 1Q

To determine

Describe the characteristics of proprietary fund.

Expert Solution

Explanation of Solution

Proprietary Funds: These are the funds that are established to report for the government’s business type organization and activities which deal with providing benefits to others by charging the user of the public utilities, hospitals, and transportation systems.

The following are the characteristics of proprietary fund:

Proprietary fund follows accounting and financial reporting principles similar to those for commercial business organization.
This fund assists financial statement users to measure operational accountability for business-type activities.
It helps the government in managing the resources efficiently.
Proprietary funds are classified into two types of funds- Internal service fund and enterprise fund.

To determine

Explain the difference between internal service fund and enterprise fund.

Expert Solution

Explanation of Solution

The difference between internal service fund and enterprise fund are as follows:

Internal service funds record the activities that are related to purchase and distribution within the departments of the government whereas, the enterprise funds record the activities that provide goods or service to the public.
Internal service fund accounts for the internal financial transactions and the enterprise funds account for the external financial transactions.
The “Governmental accounting standards board” (GASB) requires the government to report the financial transactions of the internal service funds in the “governmental activities” column and the financial transaction of the enterprise funds in the “business-type activities” column.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

I am trying to find the accurate solution to this financial accounting problem with the correct explanation.

I am trying to find the accurate solution to this general accounting problem with appropriate explanations.

provide correct answer accounting question

Answer 2

Question

Chapter 7, Problem 1Q

To determine

Describe the characteristics of proprietary fund.

Expert Solution

Explanation of Solution

Proprietary Funds: These are the funds that are established to report for the government’s business type organization and activities which deal with providing benefits to others by charging the user of the public utilities, hospitals, and transportation systems.

The following are the characteristics of proprietary fund:

Proprietary fund follows accounting and financial reporting principles similar to those for commercial business organization.
This fund assists financial statement users to measure operational accountability for business-type activities.
It helps the government in managing the resources efficiently.
Proprietary funds are classified into two types of funds- Internal service fund and enterprise fund.

To determine

Explain the difference between internal service fund and enterprise fund.

Expert Solution

Explanation of Solution

The difference between internal service fund and enterprise fund are as follows:

Internal service funds record the activities that are related to purchase and distribution within the departments of the government whereas, the enterprise funds record the activities that provide goods or service to the public.
Internal service fund accounts for the internal financial transactions and the enterprise funds account for the external financial transactions.
The “Governmental accounting standards board” (GASB) requires the government to report the financial transactions of the internal service funds in the “governmental activities” column and the financial transaction of the enterprise funds in the “business-type activities” column.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1Q

To determine

Describe the characteristics of proprietary fund.

Expert Solution

Explanation of Solution

Proprietary Funds: These are the funds that are established to report for the government’s business type organization and activities which deal with providing benefits to others by charging the user of the public utilities, hospitals, and transportation systems.

The following are the characteristics of proprietary fund:

Proprietary fund follows accounting and financial reporting principles similar to those for commercial business organization.
This fund assists financial statement users to measure operational accountability for business-type activities.
It helps the government in managing the resources efficiently.
Proprietary funds are classified into two types of funds- Internal service fund and enterprise fund.

To determine

Explain the difference between internal service fund and enterprise fund.

Expert Solution

Explanation of Solution

The difference between internal service fund and enterprise fund are as follows:

Internal service funds record the activities that are related to purchase and distribution within the departments of the government whereas, the enterprise funds record the activities that provide goods or service to the public.
Internal service fund accounts for the internal financial transactions and the enterprise funds account for the external financial transactions.
The “Governmental accounting standards board” (GASB) requires the government to report the financial transactions of the internal service funds in the “governmental activities” column and the financial transaction of the enterprise funds in the “business-type activities” column.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1Q

To determine

Describe the characteristics of proprietary fund.

Expert Solution

Explanation of Solution

Proprietary Funds: These are the funds that are established to report for the government’s business type organization and activities which deal with providing benefits to others by charging the user of the public utilities, hospitals, and transportation systems.

The following are the characteristics of proprietary fund:

Proprietary fund follows accounting and financial reporting principles similar to those for commercial business organization.
This fund assists financial statement users to measure operational accountability for business-type activities.
It helps the government in managing the resources efficiently.
Proprietary funds are classified into two types of funds- Internal service fund and enterprise fund.

To determine

Explain the difference between internal service fund and enterprise fund.

Expert Solution

Explanation of Solution

The difference between internal service fund and enterprise fund are as follows:

Internal service funds record the activities that are related to purchase and distribution within the departments of the government whereas, the enterprise funds record the activities that provide goods or service to the public.
Internal service fund accounts for the internal financial transactions and the enterprise funds account for the external financial transactions.
The “Governmental accounting standards board” (GASB) requires the government to report the financial transactions of the internal service funds in the “governmental activities” column and the financial transaction of the enterprise funds in the “business-type activities” column.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1Q

To determine

Describe the characteristics of proprietary fund.

Expert Solution

Explanation of Solution

Proprietary Funds: These are the funds that are established to report for the government’s business type organization and activities which deal with providing benefits to others by charging the user of the public utilities, hospitals, and transportation systems.

The following are the characteristics of proprietary fund:

Proprietary fund follows accounting and financial reporting principles similar to those for commercial business organization.
This fund assists financial statement users to measure operational accountability for business-type activities.
It helps the government in managing the resources efficiently.
Proprietary funds are classified into two types of funds- Internal service fund and enterprise fund.

To determine

Explain the difference between internal service fund and enterprise fund.

Expert Solution

Explanation of Solution

The difference between internal service fund and enterprise fund are as follows:

Internal service funds record the activities that are related to purchase and distribution within the departments of the government whereas, the enterprise funds record the activities that provide goods or service to the public.
Internal service fund accounts for the internal financial transactions and the enterprise funds account for the external financial transactions.
The “Governmental accounting standards board” (GASB) requires the government to report the financial transactions of the internal service funds in the “governmental activities” column and the financial transaction of the enterprise funds in the “business-type activities” column.

Answer 6

Chapter 7, Problem 1Q

To determine

Describe the characteristics of proprietary fund.

Expert Solution

Explanation of Solution

Proprietary Funds: These are the funds that are established to report for the government’s business type organization and activities which deal with providing benefits to others by charging the user of the public utilities, hospitals, and transportation systems.

The following are the characteristics of proprietary fund:

Proprietary fund follows accounting and financial reporting principles similar to those for commercial business organization.
This fund assists financial statement users to measure operational accountability for business-type activities.
It helps the government in managing the resources efficiently.
Proprietary funds are classified into two types of funds- Internal service fund and enterprise fund.

Answer 7

Chapter 7, Problem 1Q

To determine

Describe the characteristics of proprietary fund.

Answer 8

Expert Solution

Explanation of Solution

Proprietary Funds: These are the funds that are established to report for the government’s business type organization and activities which deal with providing benefits to others by charging the user of the public utilities, hospitals, and transportation systems.

The following are the characteristics of proprietary fund:

Proprietary fund follows accounting and financial reporting principles similar to those for commercial business organization.
This fund assists financial statement users to measure operational accountability for business-type activities.
It helps the government in managing the resources efficiently.
Proprietary funds are classified into two types of funds- Internal service fund and enterprise fund.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Explain the difference between internal service fund and enterprise fund.

Expert Solution

Explanation of Solution

The difference between internal service fund and enterprise fund are as follows:

Internal service funds record the activities that are related to purchase and distribution within the departments of the government whereas, the enterprise funds record the activities that provide goods or service to the public.
Internal service fund accounts for the internal financial transactions and the enterprise funds account for the external financial transactions.
The “Governmental accounting standards board” (GASB) requires the government to report the financial transactions of the internal service funds in the “governmental activities” column and the financial transaction of the enterprise funds in the “business-type activities” column.

Answer 13

To determine

Explain the difference between internal service fund and enterprise fund.

Answer 14

Expert Solution

Explanation of Solution

The difference between internal service fund and enterprise fund are as follows:

Internal service funds record the activities that are related to purchase and distribution within the departments of the government whereas, the enterprise funds record the activities that provide goods or service to the public.
Internal service fund accounts for the internal financial transactions and the enterprise funds account for the external financial transactions.
The “Governmental accounting standards board” (GASB) requires the government to report the financial transactions of the internal service funds in the “governmental activities” column and the financial transaction of the enterprise funds in the “business-type activities” column.