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Describe in your own words the difference between governmental funds and enterprise funds.

Describe in your own words the difference between governmental funds and enterprise funds.

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Answer #1

the difference between governmental funds and enterprise funds

1) the source of the government funds is the taxes so in the case taxation is key source of funding for government while enterprise funds are raise from investors through equity and debt.

2) Most of government funds are used for the social spending as well as social well being and there is no specific purpose. on the other side, enterprise funds are utilized for the specific purposes only

3) Enterprise funds charge commission or fee for giving their funds or services, while government funds are generally does not take any fee

the above all are answer.

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