Proprietary Funds: For Governmental Accounting & CPA exa

My governmental accounting video course cover proprietary funds such as enterprise funds and internal service funds.  My course is best for accounting students taking governmental accounting course and CPA exam candidates.

Governmental and Not-For-Profit Accounting

Governmental and Not-For-Profit Accounting

Proprietary Funds This category of funds is used to account for a government’s activities that are businesslike in nature. Specifically they operate to provide services to customers who pay for the services received. proprietary funds There are two types of proprietary funds:

  1. Enterprise funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government. Examples of enterprise funds include water and other utilities, airports, swimming pools, and transit systems. proprietary funds
  2. Internal service funds account for services provided by one department of a government to another, generally on a cost-reimbursement basis. In some cases, these services are also provided to other governments. Examples of internal service funds include print shops, motor pools, and self-insurance funds. proprietary funds

Fiduciary Funds Fiduciary funds, sometimes known as trust and agency funds, account for resources for which the government is acting as a trustee or collecting/disbursing agent. Four types of fiduciary funds exist:

  1. Agency funds are used to account for situations in which the government is acting as a collecting/disbursing agent. An example would be a county tax agency fund, where the county collects and disburses property taxes for other taxing units within the county, such as independent school districts.
  2. Pension (and other employee benefit) trust funds are used to account for pension and employee benefit funds for which the governmental unit is the trustee.
  3. Investment trust funds account for the external portion of investment pools reported by the sponsoring government.
  4. Private-purpose trust funds report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments.