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Fund acctg: governmental transactions instead of using GAAP

Does it make sense to you the use of fund accounting for state & governmental transactions instead of using GAAP? Why? Please cite reference/source.

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Yes, there are several reasons why fund accounting for municipalities must be different from GAAP. First, the state and government entities are governed by laws that permit them to engage in transactions. These laws may not permit activity that a typical for-profit organization can do such as obligate future periods (long term loans). ...

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Your tutorial is 183 words and gives three reasons and two references.