Government Accounting

| Difference between governing write up and money fashioning(prenominal) chronicle presidency accounting is fundamentally different from money devising(prenominal) accounting in the following ways: * Government domain of a function of influence organisations do not have an objective of making a profit. They generally show goods and go to the humans which are free or at least at a break-even price. Commercial organisations, as the summon suggests, are for profit making and normally price their goods and run above the cost price. They usually seek to recover be and charge a mark-up on cost as a profit. * In government accounting, the legislature or parliament coffin nail question public sector officials at any time, it do-nothing ask crabby action to be taken and demand for a precise account to be provided for this action. This suffices to say that leadership in the government is political whereas in the private sector leadership is by individual di rectors. In the private sector, shareholders bunghole hold companionship directors to account for their actions at the company`s Annual superior general Meeting when the accounts are proposed for approval. * Government accounting uses cash-based accounting method. This is an accounting method that recognises revenues when monies are received and expenses when monies are paid out.

on that point are more concerned approximately service spoken communication and only records cash when factually received rather than accrued and expenses when paid out than deferred. On the some other hand, commercial message accounting uses accrual method of accounting. This is a method wher! eby minutes are recorded as they occur and not when actual money is received or paid out. Revenues recoil the monies that came imputable during the year, whether collected or not. Expenses reflect the amount of goods and services consumed during the year, whether or not they are paid for during the year. * Also differs on the root system of financing. Government usually raises their revenues directly or indirectly from taxation. The twinned concept...If you want to get a full essay, differentiate it on our website: BestEssayCheap.com

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