Question

WHAT ARE THE IMPORTANCE AND EFFECTS OF GOVERNMENT ACCOUNTING?

Answer 1

Various governmental accounting systemsare used by various public sector entities. In the United States, for instance, there are two levels of government which follow different accounting standards set forth by independent, private sector boards. At the federal level, the Federal Accounting Standards Advisory Board (FASAB) sets forth the accounting standards to follow. Similarly, there is the Governmental Accounting Standards Board (GASB) for state and local level government. Government accountingcan, therefore, be referred to as the process of recording and the management of all financial transactions incurred by the government which includes its income and expenditures