How would you compare the accounting for enterprise funds with that of (a) businesses and (b) governmental funds? Summarize the reasons both for and against accounting for enterprises funds differently than governmental funds and include an example of an enterprise with regards to this.© BrainMass Inc. brainmass.com June 4, 2020, 4:16 am ad1c9bdddf
How would you compare the accounting for enterprise funds with that of (a) businesses and (b) governmental funds?
Enterprise funds are one of the two potential "proprietary funds" in nonprofit or governmental organizations.
Similar to business:
An enterprise fund accounts for the direct fees from customers for services or goods and resembles business activity more than it resembles governmental or nonprofit activities. As a result, it is accounted for similar to a business, except for equity since it is does ...
Your discussion is 249 words and mentions how enterprise funds are similar and different from businesses and argues for and against treating them like businesses in their accounting methods.