Why Governmental Accounting and Financial Reporting Is-and Should Be-Different: [Essay Example], 518 words GradesFixer
close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Why Governmental Accounting and Financial Reporting Is-and Should Be-different

downloadDownload printPrint

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

Throughout our class lectures, our textbook, and in the article titled Governmental Accounting Standards Board’s Why Governmental Accounting and Financial Reporting Is-and Should Be-Different, we the students were given five environmental differences between governments and for-profit business enterprises. The five environmental differences as follows: organizational purposes, sources of revenue, potential for longevity, relationship with stakeholders, and role of budget. First, organizational purpose is described to as a government organizational purpose to provide public services for the well-being of citizens regardless of profit. Some of these public services are education, public safety, transportation, and social services. Whereas a for-profit business’s organizational purpose is to generate a profit for the owner while providing services to the public. Second, sources of revenue state that it’s for-profit business’s source of revenue is its net income, which is total revenues (sales) minus total expenses.

On the other hand, a government’s source of revenue is mainly from taxes. Third, is potential for longevity. The article explains that state and local governments hardly go out of business because they are given the ability to tax and for that reason, governments view accounting operations on a long-term basis instead of a short-term basis. While, governments concentrate on maintaining services and how they will meet their future demands. Next, is relationship with stakeholders. This is stated that since governments main source of revenue is taxes, which are mostly known to be paid by citizens, they are required to account for these public funds, while on the other hand a business can use its resources as it chooses. Lastly, is the role of budget. The article explains that businesses prepare a budget for planning and control purposes and are normally not provided to creditors or investors: while, governments on the other hand, prepare a budget which is expressed as a public policy, which prevents spending outside their budgetary authority.

Moreover, there are a couple of differences between the private and public-sector organizations. For instance, public and private sectors have different goals and motives. They are overseen with different principles. Groups oversee their actions and procedures throughout. An example is how organizations that are in the private sector have more freedom to operate freely. As for public organizations, they aren’t as free. They are governed by rules, laws, and traditions. A significant difference between the two is their goals. For example, the public sectors main focus is to assist the general public and look after their interests. As for the private sector, their main concern is creating markets in order to enable earning profits.

The private sector must answer to stakeholders, customers, to the investors, and the board and directors. The difference in their goals and external forces affect the way different kinds of organizations operate. For instance, public organizations often can’t choose their goals. As for the private sector, they set their own goals and focus on their resources on accomplishing them. Public organizations continuously find themselves pressed by legislative obligations and often have to try to accommodate a host of other organizations that can have conflicting goals. Therefore, public and private organizations face challenges that are unique to each sector.

infoRemember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism-free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

Why Governmental Accounting and Financial Reporting Is-and Should Be-Different. (2019, January 15). GradesFixer. Retrieved May 13, 2021, from https://gradesfixer.com/free-essay-examples/why-governmental-accounting-and-financial-reporting-is-and-should-be-different/
“Why Governmental Accounting and Financial Reporting Is-and Should Be-Different.” GradesFixer, 15 Jan. 2019, gradesfixer.com/free-essay-examples/why-governmental-accounting-and-financial-reporting-is-and-should-be-different/
Why Governmental Accounting and Financial Reporting Is-and Should Be-Different. [online]. Available at: <https://gradesfixer.com/free-essay-examples/why-governmental-accounting-and-financial-reporting-is-and-should-be-different/> [Accessed 13 May 2021].
Why Governmental Accounting and Financial Reporting Is-and Should Be-Different [Internet]. GradesFixer. 2019 Jan 15 [cited 2021 May 13]. Available from: https://gradesfixer.com/free-essay-examples/why-governmental-accounting-and-financial-reporting-is-and-should-be-different/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec

    Recieve 100% plagiarism-Free paper just for 4.99$ on email
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you

    close

    Thanks!

    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer

    GradesFixer.com uses cookies. By continuing we’ll assume you board with our cookie policy.

    exit-popup-close

    Haven't found the right essay?

    Get an expert to write you the one you need!

    exit-popup-print

    Professional writers and researchers

    exit-popup-quotes

    Sources and citation are provided

    exit-popup-clock

    3 hour delivery

    exit-popup-persone