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The proprietary fund financial statements and the government or business operations column of the government-wide financial statements should both include financial information regarding an internal service fund (depending on which the internal service fund predominantly serves).

Usually as part of governmental activities, unless the internal service fund predominantly serves one or more enterprise funds.

On the fund statement, a single column contains information about the internal service funds. There must be an overall sum for the payment. The fund balance is shown in the government's overall statements in the government entity column.

The internal service funds are proprietary funds, which are accounted for on a flow of economic resources measurement focus, which requires full accrual accounting.

A proprietary fund is used in governmental accounting to account for activities that involve business-like interactions, either within the government or outside of it. These activities are similar to what would be found in the private sector, so the reporting resembles what would be used by a private business

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