Explore BrainMass

Government Wide: enterprise funds vs internal service funds

In government-wide statements, enterprise funds are reported differently than are internal service funds. Can you please explain this to me?

Solution Preview

Both Enterprise Funds and Internal Service funds assess a user charge and profit or recovery of costs is the focus of the reporting. So, they both have "customers" who pay for something.

An Enterprise Fund charges customers (typically users of some service) fees for their activity. This fund ...

Solution Summary

A paragraph explains the difference between enterprise funds and internal service funds.