Problem: Visit GASB's website, and then, locate and read statements No. 34, 54, and 76. Prepare an analysis of the modified accrual basis of accounting used by the governmental fund in comparison to the accrual basis used by the business enterprises. Your analysis should include the following:
- Definition of a fund, fund accounting, and fund equity.
- Description of types of governmental funds. Provide an example for each type.
- Discussion on the classification of the governmental fund balances. Provide examples.
- A comparison table of at least six differences between the accrual basis of accounting and the modified basis of accounting. - -- Discussion on the benefits of using the modified accrual basis of accounting.
- Your opinion on whether governmental funds should use the accrual basis of accounting.