Hello...I would like a rebuttal to this answer. Thanks!

Enterprise funds are accounted for on a full accrual basis. Thus, they are accounted for similarly to businesses. Governmental funds, by contrast, are accounted for on a modified accrual basis. The arguments in favor of using the full accrual basis for accounting for enterprise funds include the following: The full accrual basis of accounting (i.e., a measurement focus on all economic resources) captures all the resources and obligations associated with an activity, including capital assets and long-term obligations. It provides a complete picture of the entity's financial position and operating results. The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services and to assist users in assessing service efforts, costs, and accomplishments. Full accrual accounting provides information on depreciation, an essential cost of operations. Business-type accounting facilitates comparisons with similar private enterprises. The arguments against including the following: Two separate measurement focuses and bases of accounting within the same set of financial statements are confusing and limit the usefulness of government-wide consolidated statements that purport to present an overview of the entity as an economic whole. There are no clear-cut distinctions between business and non-business activities. Despite many similarities, government activities cannot and should not be compared to activities carried out in the private sector. A government should have sound political and economic reasons other than merely earning a profit for conducting a particular action in the public sector. If it does not, then the activity should be privatized. These reasons suggest that the activities should be assessed by criteria other than profits the "bottom line" of business-type financial reports. Insofar as the full accrual basis is superior to the modified accrual basis, it should be used to account for all government activities, not merely business-type activities. Indeed, the above arguments can be applied to governmental and enterprise funds.