In: Accounting
What are some differences in the cash flow statement between proprietary fund accounting and business accounting>
Explanation:
A proprietary fund accounting is a method of accounting used by
the government for recording of transaction with in the various
departments.
It mainly consists of two types of accounting
1. enterprise fund.
2. internal service fund.
Business accounting were systematically recording of transactions
within the organisation other than governmental department.
It can be done by cash or accountant professional for the
organisation cash flow differences between the proprietary fund and
business accounting as follows :
1. proprietary fund cash flows uses GASB statement whereas business
accounting uses accouting standard.
2. proprietary fund cash flow statement is more focused on using
direct method for entering data where is business focuses on
indirect method for recording transactions in cash flow
statement.
3. It is mandatory for government to prepare proprietary fund cash
flow statement where is business accounting made cash flow
statements only for presentation purpose to the members.