Explore BrainMass

Explore BrainMass

    Enterprise funds: compare to business & governmental funds

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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
    https://brainmass.com/business/accounting/enterprise-funds-compare-to-business-governmental-funds-553094

    Solution Preview

    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 ...

    Solution Summary

    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.

    $2.19

    ADVERTISEMENT