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Subject Topic: Government acc - Wiley 2009 problem (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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studyfreak
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Posted: 30 Dec 2009 at 13:42 | IP Logged  

Simple problem:

In accordance with GASB 35, a public college or university that chooses to report only business-type activities should present only the financial statements required for:

A. Enterprise funds
B. Government funds
C. Internal service funds
D. Enterprise and internal service funds

The answer key says it's A, and claims that if a public college elects to report only business type activities, they only have to present enterprise funds, and not internal service funds.  However, on page 886 of Wiley, it says only proprietary funds are required.  Last I checked, an internal service fund is a proprietary fund.  So, why isn't the answer D?



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joecjr
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Posted: 30 Dec 2009 at 14:23 | IP Logged  

the reason is because enterprise funds recover costs by charging user fees to the public and are along the lines of business type activities.

Go back to my post around mid or early November. Someone gave a very clear response to this same question.  I was using Wiley also, and had gotten hung up on this question too.

 



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studyfreak
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Posted: 30 Dec 2009 at 14:41 | IP Logged  

joecjr wrote:

the reason is because enterprise funds recover costs by charging user fees to the public and are along the lines of business type activities.

Go back to my post around mid or early November. Someone gave a very clear response to this same question.  I was using Wiley also, and had gotten hung up on this question too.

 

Ah, I didn't check your post yet but I think I get it.  Internal service funds are considered governmental activities, not business type.  Thanks.  I still think Wiley should reword that page because using the term "proprietary" is misleading.  They should say "business-type proprietary".



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BEC - 83 - Yaeger/Wiley
AUD - 96 - Wiley/Gleim CD
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