Governmental accounting systems are different from business accounting systems, Why? Funds used in state and local government accounting and financial reporting are classified into three categories: (1) governmental funds, (2) proprietary funds, and (3) fiduciary funds. What measurement focus is used for each of these three categories, and what types of assets and liabilities are reported for each measurement focus? Revenues and expenditures are reported in governmental funds, and revenues and expenses are reported in proprietary funds. How do revenues and expenditures in governmental funds differ from revenues and expenses in proprietary funds? Why are a municipality's general capital assets and general long-term liabilities accounted for through nonfund accounts rather than within one of its governmental funds, such as the General fund? In what funds and nonfund accounts are (a) capital asses and (b) long-term liabilities accounted for? Under what circumstances should a government use a Special Revenue Fund? A Capital Projects Fund? A Debt Service Fund