Theory question 104
Public Sector AccountingState five differences between public sector accounting and commercial accounting.
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Any five contrasts: aim – public sector shows how public funds were raised and spent (accountability), commercial measures profit; income – taxes, rates, fines, grants vs sales of goods and services; basis – mainly cash basis vs accrual basis; result – surplus or deficit vs profit or loss; fixed assets – expensed when bought and not depreciated vs capitalised and depreciated; legal basis – constitution, Finance Acts and financial regulations vs Companies Act/partnership agreement; users – the public and legislature vs owners/shareholders; control – through budgets/appropriation, votes and warrants vs management decisions; ownership – government vs private owners.
Set each difference out as 'public sector … while commercial …'.