“Business Type Activities called Proprietary Funds (Enterprise and Internal Service Funds)” Please respond to the following:
In Chapter 9, we learn that business-type activities of governments are accounted for in a fashion similar to those carried out by businesses. It is easy to understand that accounting for these services is done on a full accrual basis of accounting; however, give your opinion on the way in which this integrates with the modified basis of accounting used by governmental funds. Use the textbook and GASB materials to support your position.
Analyze the various types of business-type funds used in governmental units, and provide an example of when each is appropriate. In developing your initial discussion post and in commenting on your classmatesâ€ responses, consider the city, town, or county selected for the continuing problem or perhaps from published material from your home state or city.
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Consolidated Financial Statements â€“ Ownership, Income Taxes, and Legal Reorganizations” Please respond to the following:
Determine the fundamental advantages to a business combination of filing a consolidated tax return. Next, analyze the main reasons why members of a business combination file separate returns. Provide a rationale for your response.
Differentiate between the two (2) categories of liabilities (i.e., fully secured and partially secured) that have priority in business liquidation. Analyze the main reasons why unsecured creditors favor reorganizing an insolvent company rather than forcing it into liquidation. Provide support for your rationale.
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