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Unformatted text preview: Enterprise Fund Fund Measurement focus Current financial resources Economic resources Accounting basis Modified accrual Accrual Budgetary basis Operating budget None required Long-term assets No Yes Long-term debt No Yes Encumbrances Yes No Financial statements Governmental type Commercial type Q18-5 The basis of accounting used in the proprietary funds is the accrual basis because the focus of the governmental entity is on capital maintenance and income determination rather than budgetary spending authority. Q18-6 The financial statements that must be prepared for the governmental funds are the balance sheet and the statement of revenues, expenditures, and changes in fund balances. The financial statements that must be prepared for the enterprise funds are the statement of net assets, the statement of revenues, expenses, and changes in fund net assets, and the statement of cash flows....
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- Fall '11