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NOTES TO FINANCIAL STATEMENTS - Continued <br />December 31, 1984 <br />Note is Summary of Significant Accounting Policies - Continued <br />(z) Proprietary Fund Types - <br />a) Enterprise Funds - Enterprise Funds are used to account <br />for operations that are financed and operated in a manner <br />similar to private business enterprises --where the intent <br />of the governing body is that the costs of providing goods <br />or services to the general public on a continuing basis be <br />financed or recover..a primarily through user charges. <br />(3) Account. Groups - <br />a) General Fixed Assets - This separate group of accounts <br />contains the fixed assets of the governmental fund types. <br />b) General Long -Term Debt - This group of accounts contains <br />the long-term obligations of the City other than those <br />liabilities included in the Proprietary and Special <br />Assessment Funds. <br />C. bASIS OF ACCOUNTING - <br />(1) Modified Accrual - Governmental funds are accounted for using <br />the modified accrual basis of accounting. Their revenue is <br />recognized when it becomes measurable ar,.. available as net <br />current assets. Their expenditures are generally recognized <br />when the related fund liability is incurred. <br />(2) Accrual - Proprietary funds are accounted for using the <br />accrual basis of accounting. Their revenue is recognized when <br />it is earned and expenses are recognized when they are <br />incurred. <br />1). INVESTMENTS - Investments are stated at cost, which approximates <br />market value. Earnings or, investments are allocated to the <br />individual funds based upon the average of month -end cash and <br />investment balances. <br />E.. INVENTORY - Inventories are stated at the lower of cost or market <br />on the tirst-in, first -out basis. <br />x. PROPERTY, PLANT, AND EQUIPMFNT - Fixed asset: are stated at cus!, <br />estimated costs, or in the case of contribut.ons, at fair merk.,t <br />value at the time received. <br />(1) General Fixed Assets Account Groul - General fixed assets arr <br />not depreciated. Tne cast ut property, )plant, and equipownt. <br />are accounted for ass current. expenditure-- of ttie y<;vernsrental <br />fund types in the your purchased. <br />- 1'� - <br />