Hello Ashley,

I am glad that my reply helped to clear up some of the confusion of this chapter. This
chapter had some difficult concepts, some of which I still need to learn. The different
funds, and what makes them classify as each fund type is very important to
governmental bodies, and for-profit organizations. After all misassigning a fund as the
wrong type could lead to confusion among staff, and investors alike. On top of this it
would become difficult to know how much to assign to each fund if they were not
assigned the correct classification. For example, if an enterprise fund is instead
classified as a governmental fund, more money may be put into the fund even though it
is self-sustaining. Great reply!