1) Differentiate between Public sector accounting... | WAEC SSCE - Financial Accounting - 2018 (Essay)

Question 1 Report

1) Differentiate between Public sector accounting and Private sector accounting

2) Sources of revenue for a local government

3) Items of expenditure of a local government

Answer

1. Public sector versus Private sector accounting

Public sector accounting	Private sector accounting
Keeps accounts for government and its agencies.	Keeps accounts for individuals and privately owned businesses.
Main aim is to render services/welfare, not profit.	Main aim is to make and maximise profit.
Largely uses cash/fund accounting and budgets backed by law.	Largely uses accrual accounting to measure profit.
Revenue mainly from taxes, rates, levies, grants and allocations.	Revenue mainly from sales, capital and loans.
Governed by financial regulations and appropriation/enabling laws.	Governed by the Companies Act and accounting standards.

2. Sources of revenue for a local government

3. Items of expenditure of a local government

Answer Details

1. Public sector versus Private sector accounting

Public sector accounting	Private sector accounting
Keeps accounts for government and its agencies.	Keeps accounts for individuals and privately owned businesses.
Main aim is to render services/welfare, not profit.	Main aim is to make and maximise profit.
Largely uses cash/fund accounting and budgets backed by law.	Largely uses accrual accounting to measure profit.
Revenue mainly from taxes, rates, levies, grants and allocations.	Revenue mainly from sales, capital and loans.
Governed by financial regulations and appropriation/enabling laws.	Governed by the Companies Act and accounting standards.

2. Sources of revenue for a local government

3. Items of expenditure of a local government

1) Differentiate between Public sector accounting and Private sector accounting 2) Sources of revenue for a local government 3) Items of expenditure of a lo...