The accounting and financial reporting procedures for which fund category apply to governmental hospitals?

Question

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Governmental hospitals typically operate like businesses, generating revenue and incurring expenses to provide healthcare services. As such, their financial activities are best accounted for using proprietary type funds, which are used for businesses-like activities and are reported using accrual accounting. Governmental type funds are used for general government operations, fiduciary type funds are used to hold resources in trust for others, and restricted type funds are used for specific purposes with limitations on how the funds are used.

The Accounting and Financial Reporting Procedures for Which Fund Category