Which of the following accounts is not kept by a local government?
Answer Details
The account that is not kept by a local government is the profit and loss account.
A profit and loss account is an account used by businesses to record their income, expenses, gains, and losses over a given period of time, usually a fiscal year. This account is used to calculate the net profit or loss of a business.
Local governments, on the other hand, are not businesses and do not have a profit motive. Instead, they are public entities responsible for providing services to their communities. Therefore, they do not keep a profit and loss account.
The other accounts listed are commonly used by local governments. The departmental votes revenue account is used to record the income received by different departments or units of the local government. The departmental votes expenditure account is used to record the expenses incurred by different departments or units of the local government. The deposit account is used to record money held by the local government in a bank account. The advances account is used to record any payments made in advance of goods or services being received.