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Why do proprietary-type funds use full accrual accounting?

Enterprise funds and internal service funds use full accrual accounting in order to determine full cost - that is both operating costs and capital costs. Having full costs enables managers of these entities to have appropriate data for determining user charges.


What are the differences between full accrual modified accrual and cash budget accounting?

For full accrual, just look up accrual accounting, that's basically it. Modified Accrual Accounting is a governmental accounting method where revenue is recognized when it becomes available and measurable. Also, expenditure is typically recognized in the period in which the liability is incurred, except in cases where: 1. inventories of materials and supplies that may be considered expenditures either when bought or used 2. interest on general and special assessment long-term debt that is recognized on the date due; and 3. use of encumbrances, in which case, most governmental funds follow the modified accrual method. Page 273, Dictionary of Accounting Terms, Baron's Business Guides, Baron's Educational Services, 1987 New York A Cash Budget is a detailed budget of estimated cash inflows and outflows within a business, and incorporates both revenue and capital items.


When is WACC an appropriate discount rate when doing capital budgeting?

WACC is appropriate where company is using differnt kind of capital like debt and equity for doing capital budgeting.


What are the three capital budgeting methods?

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What is capital budgeting. Enumerate and explain the various methods for evaluation of capital expenditure projects?

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Related Questions

When to use accounting accruals?

In accrual based accounting, expenses are recognized in the period in which they are incurred if measurable.


What is the objective of capital budgeting?

objectives of capital budgeting


Objectives of capital budgeting?

what are the objective of capital budgeting


Modern view of capital budgeting?

Meaning of Capital Budgeting


What are objectives of capital budgeting?

1) What is capital budgeting? What are its objectives?


Why do proprietary-type funds use full accrual accounting?

Enterprise funds and internal service funds use full accrual accounting in order to determine full cost - that is both operating costs and capital costs. Having full costs enables managers of these entities to have appropriate data for determining user charges.


What is the purpose of capital budgeting?

The purpose of capital budgeting is to help poor people and others improve their life.


What impact does WACC have on capital budgeting and structure?

What impact does WACC have on capital budgeting and structure?


What are the differences between full accrual modified accrual and cash budget accounting?

For full accrual, just look up accrual accounting, that's basically it. Modified Accrual Accounting is a governmental accounting method where revenue is recognized when it becomes available and measurable. Also, expenditure is typically recognized in the period in which the liability is incurred, except in cases where: 1. inventories of materials and supplies that may be considered expenditures either when bought or used 2. interest on general and special assessment long-term debt that is recognized on the date due; and 3. use of encumbrances, in which case, most governmental funds follow the modified accrual method. Page 273, Dictionary of Accounting Terms, Baron's Business Guides, Baron's Educational Services, 1987 New York A Cash Budget is a detailed budget of estimated cash inflows and outflows within a business, and incorporates both revenue and capital items.


Various objectives of capital budgeting in project planning?

Objectives of capital budgeting project report


Capital budgeting literature review?

capital budgeting is one of important in company financeing position


Where can one learn about the capital budgeting process?

You can learn about the capital budgeting process on the wikipedia free encyclopedia article which is labelled capital budgeting. It describes what the process is and what types of companies use it.