 Now we're gonna move to another group of funds, which is called the proprietary funds. Under the proprietary funds, we have the enterprise funds, one of two, and we have the internal service funds, starting with the enterprise fund. Once you hear the word enterprise, it sounds like entrepreneur, exactly. It's basically a business-like funds. Like you are here, the government is running a business. These funds are used to account for government activities that operate like a business. And here, once we get to the enterprise funds, I'm gonna tell you, this is easy because you already know all about the enterprise fund. It's accounting exactly like what you learned for a cruel, charging fees for goods and services provided to the public. And all the prior funds, like for example, in the general fund, the government might provide service, but they don't provide a service in exchange for an equal revenue. They might, for example, if there's a fire, they're gonna go ahead and treat that fire, but they're not gonna charge the people. But for example, if the government is running the airport, for example, the Port Authority of Philadelphia runs the airport, that's an enterprise fund. They run it like a business. You pay for your goods and services. So enterprise fund would include water, sewer, electricity if the government is in charge of this, public transportation system, as I told you, for example, the Philadelphia International Airport or parking facilities maintained by the municipality, they all charge you fair market value. However, it's government run. For example, in the state of Pennsylvania, the liquor is, all the liquor stores are operated by the state, which is an enterprise fund. A cruel accounting is used here. What does that mean? It means from a balance sheet perspective, we're gonna be accounting for long-term assets, long-term debt, just like any other business. Before we proceed any further, I have a public announcement about my company, farhatlectures.com. Farhat Accounting Lectures is a supplemental educational tool that's gonna help you with your CPA exam preparation as well as your accounting courses. My CPA material is aligned with your CPA review course such as Becker, Roger, Wiley, Gleam, Miles. My accounting courses are aligned with your accounting courses, broken down by chapter and topics. My resources consist of lectures, multiple choice questions, true-false questions, as well as exercises. Go ahead, start your free trial today. Another proprietary fund is called the Internal Service Funds and this is the second one. These funds accounts for goods and services provided by one department or one agency to another department or agency within the government on a cost reimbursement basis. If we go back here, for example, we said, for example, electricity. For example, you could have the Enterprise Fund, Enterprise Fund generating electricity and you're gonna have that electricity than another agency using this electricity. Well, guess what? We're gonna account through this through the Internal Service Fund. So you're gonna pay for those services, okay? So this includes centralized services such as vehicle maintenance. For example, for the vehicle maintenance, you could have the police department, you could have the fire department, you could have the inspection department. They all have vehicles. They all have vehicles to maintain. And what you're gonna do, you're gonna create an Internal Service Fund where all these vehicles are maintained. So if anything goes wrong, they need to change their tires, they need to change oil, so on and so forth. They go to this Internal Service Fund and they pay on a cost reimbursement basis. So they go in there and this fund is used as it is for a business, but the customers are internal, all the customers, so they don't service external to the government because if they service people who are external, they sounds like an Enterprise Fund, okay? Or for example, you could have information, technology support where this IT department is helping the police department, maintaining the IT for the police department, for the fire department, for the inspection department, for all departments in the government. That's an Internal Service Fund. So your customers are other government entities. Here again, we use accrual accounting, which we are accounting for long-term assets, long-term liabilities.