Need part 3 and 4 Done part 1 and 2 attached

Even though government accounting largely happen like any other type of accounting, there are some elements that make it unique from other types of accounting such as for profit and not-for-profit organization. Government accounting conceptual framework is guided and developed by the government accounting standards board (GASB) (Caperchione, 2000). This not for profit organization establishes and improves financial and accounting standards for local and state government. The uniqueness of government accounting arises from the accounting objectives and the environment within which the government operates compared to the business entities. The primary purpose of government is to provide essential services for the well-being of all its citizens in accordance to government public policy goals. On the other hand, for profit business organization are focused on making profit and create of wealth and for this reason they only interact with those sections of the society who help them realized these goals of profit and wealth creation.

Some aspects of unique government accounting include the fact that government accounting serves a broader group of stakeholders such as taxpayers, citizens, elected officials, civil society groups as well as international interests especially investors. Secondly, government revenues are raised through involuntary tax collection unlike in business organizations where there is exchange of comparable value between two willing parties. Government accounting emphasizes on actual compliance with budget public policy. The life of government institutions is much longer than for profit organization and are not subject to bankruptcy and dissolution as it is the case with business entities. For the above reasons, government accounting is done uniquely from other types accounting (Chapter 4: Governmental Accounting, n.d.).

Just like in business organizations, ratios can be used for government financial statement analysis. Ratios can be used to compare various items of financial nature out of which relevant conclusions can be made about government financial performance. For instance, comparison can be done for various government agencies. Different government stakeholders use government financial information for different purposes. For simplicity purposes ratios have been put into categories. These categories include current ratio, debt equity ratio, and efficiency ratio. In addition, debt to capital ratio and debt ratio are also applicable in government accounting. Ratios are therefore effective financial statement analysis tools for government accounting. For instance, the current ratio shows whether short term government operational assets are able to meet the short term government obligations (Jan, n.d.).

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