What are some differences in the cash flow statement between proprietary fund accounting and business accounting>

Expert Solution

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.

ekkarill92 answered 2 years ago

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