FAR Government Accounting · Updated November 2026

Governmental Fund Types: How Do You Stop Mixing Them Up?

Start with the three fund families before memorizing individual fund names.

Governmental funds

Think GRaSPP: General, Special revenue, Capital projects, Debt service, and Permanent funds. These generally focus on current financial resources and modified accrual accounting.

Proprietary funds

Enterprise and internal service funds report business-like activities using the economic-resources measurement focus and accrual accounting.

Fiduciary funds

These report resources held in a fiduciary capacity for others rather than for the government's own programs.

Exam shortcut

Ask whether the activity is primarily governmental, business-like, or held for others before choosing the fund.

The takeaway

Classify the fund family first. Then identify the individual fund.

Related Summit guides

Governmental funds vs government-wideContinue with a related Summit CPA Review guide.Government fund balance classificationsContinue with a related Summit CPA Review guide.FAR final weekContinue with a related Summit CPA Review guide.

FAQ

Which funds generally use modified accrual?

Governmental funds.

Do enterprise funds use accrual?

Yes.

Are fiduciary resources available for general spending?

No.