Governmental Accounting Standards and Framework

Governmental Accounting Standards and

Framework

Arizona State University

Subject Description

Governmental entities follow the GASB (Governmental Accounting Standards

Board) guidelines. These rules dictate how public funds should be recorded and

reported, with an emphasis on transparency and accountability to stakeholders.

Question 1

Question 1: What are some key differences between governmental accounting

and commercial accounting standards?

Answer: Governmental accounting standards, as set by the GASB, differ

from commercial accounting standards (GAAP) in several ways:

1. Reporting entity: In governmental accounting, the focus is on the

government entity as a whole, including all funds and component units that are

under its control. Commercial accounting, on the other hand, typically focuses

on a single entity without considering related organizations.

2. Revenue recognition: Governmental accounting recognizes revenue

when it becomes measurable and available, rather than when it is earned or

realized. This is because public funds are often subject to legal restrictions

that impact their availability. In commercial accounting, revenue recognition is

based on the realization principle.

3. Fund accounting: Government entities use fund accounting to track

resources allocated for specific purposes or activities. Each fund has its own

set of accounts to segregate resources and expenditures. Commercial entities

typically use a single set of accounts under the accrual basis of accounting.

4. Financial statement presentation: Governmental accounting requires

specialized financial statements such as the statement of activities, statement of

net position, and fund financial statements. Commercial accounting typically

includes the balance sheet, income statement, and cash flow statement.

These differences reflect the unique nature of government entities and the

need for transparency and accountability in the use of public funds.

Question 2

Question 2: What are the key differences between governmental accounting

standards issued by the GASB (Governmental Accounting Standards Board)

and financial accounting standards issued by the FASB (Financial Accounting

Standards Board)?

Answer: Governmental accounting standards issued by the GASB focus

on public sector entities and emphasize accountability to taxpayers and other

stakeholders. These standards are designed to provide information for decision-

making, resource allocation, and assessing fiscal accountability. On the other

hand, financial accounting standards issued by the FASB apply to private sec-

tor entities and emphasize providing information to investors and creditors for

decision-making purposes. Additionally, GASB standards consider legal com-

pliance, intergovernmental cooperation, and the public interest, while FASB

standards focus on maximizing shareholder value and economic outcomes.

Question 3

Question 3: Explain the purpose of the Comprehensive Annual Financial Re-

port (CAFR) in governmental accounting. What are the main components

typically included in a CAFR?

Answer: The Comprehensive Annual Financial Report (CAFR) in govern-

mental accounting serves as a comprehensive overview of the financial activities

and position of a government entity over a fiscal year. It goes beyond the basic

financial statements to provide additional information that helps stakeholders

assess the entity’s financial health and performance.

The main components typically included in a CAFR are:

1. Introductory Section: This includes a letter of transmittal from the

governing body, an organizational chart, and a list of key oﬀicials.

2. Financial Section: This section contains the basic financial statements

(such as the balance sheet, statement of revenues, expenditures, and changes in

fund balances, and the statement of cash flows), as well as notes to the financial

statements providing additional details and explanations.

3. Statistical Section: This section includes a variety of financial and

non-financial data, such as demographic information, economic indicators, and

trends over multiple years.

4. Compliance Section: If applicable, this section includes reports on

compliance with legal and regulatory requirements, such as audits and findings

from external auditors.

Overall, the CAFR plays a crucial role in enhancing transparency, account-

ability, and trust in governmental financial reporting.

Question 4

Question 4: Explain the significance of the modified accrual basis of accounting

in governmental financial reporting.

Answer: The modified accrual basis of accounting is a fundamental princi-

ple in governmental financial reporting as it allows for a more accurate portrayal

of a government entity’s financial position and performance. Unlike the full ac-

crual basis commonly used in the private sector, the modified accrual basis

focuses on short-term inflows and outflows of resources. This method is pre-

ferred for governmental entities due to the nature of their financial activities,

which often revolve around budgetary constraints and the timing of revenues

and expenditures. By using the modified accrual basis, governments are able

to provide stakeholders with timely and relevant information about their finan-

cial activities, enabling better decision-making and enhancing transparency and

accountability.

Question 5

Question 5:

Explain the significance of fund accounting in governmental entities accord-

ing to GASB guidelines.

Answer:

Fund accounting is crucial in governmental entities as it helps to segregate

resources based on their intended purpose and restrictions. According to GASB

guidelines, fund accounting enables clear tracking and reporting of public funds,

ensuring transparency and accountability. By categorizing resources into dif-

ferent funds, such as general funds, special revenue funds, and capital projects

funds, governments can accurately show how money is received and spent for

specific programs or activities. This approach provides stakeholders with a

detailed understanding of the financial health and performance of the entity,

promoting fiscal responsibility and trust in the public sector.

Question 6

Question 6:

Describe the difference between the Modified Accrual Basis of Accounting

and the Full Accrual Basis of Accounting as they relate to governmental ac-

counting. Provide examples to illustrate the application of each basis.

Answer:

The Modified Accrual Basis of Accounting is commonly used by governmen-

tal entities to record revenues when they become measurable and available, and

expenditures when they are incurred. This means that revenues are recognized

in the period in which they are earned, while expenditures are recognized when

the related liabilities are incurred. For example, property taxes are recognized

as revenue when they are collected, even though they relate to a specific period.

On the other hand, the Full Accrual Basis of Accounting requires revenues

to be recognized when they are earned and expenses to be recognized when they

are incurred, regardless of when cash is received or paid. This basis provides

a more comprehensive view of the financial position and performance of the

entity. An example would be recognizing interest revenue when it is earned,

rather than when it is received.

In summary, the key difference between the two bases lies in the timing of

recognizing revenues and expenses, with the Full Accrual Basis providing a more

complete picture of the financial activities of governmental entities.

Question 7

Question 7:

Discuss the significance of fund accounting in governmental entities accord-

ing to GASB guidelines. Provide examples of different types of funds commonly

used in governmental accounting and explain their purpose.

Answer:

In governmental accounting, fund accounting plays a crucial role in main-

taining accountability and transparency in financial reporting. Fund accounting

separates resources into various funds to track specific activities, responsibilities,

and restrictions on spending.

Common types of funds used in governmental accounting include:

1. General Fund: The primary operating fund of the government, used for

general operations not accounted for in other funds.

2. Special Revenue Fund: Dedicated to specific revenue sources, such as

grants or donations, for restricted purposes.

3. Debt Service Fund: Used to account for the repayment of long-term

debt, such as bonds.

4. Capital Projects Fund: Used for capital improvement projects, such as

constructing buildings or infrastructure.

5. Internal Service Fund: Used to account for services provided by one

department to other departments within the same government entity.

Each type of fund serves a unique purpose and helps in segregating resources

for specific activities, enhancing transparency, and aiding in effective financial

management within governmental entities as per GASB guidelines.

Question 8

Question 8: Explain the difference between modified accrual basis and full

accrual basis of accounting as mandated by GASB for governmental entities.

Provide an example of a transaction that would be recorded differently under

each basis.

Answer: Under modified accrual basis of accounting, revenues are recog-

nized when measurable and available for current period expenditures, while

expenditures are recognized when incurred. This basis is typically used for gov-

ernmental funds such as general, special revenue, and debt service funds. On

the other hand, full accrual basis of accounting requires revenues to be rec-

ognized when earned and expenses when incurred, regardless of when they are

measurable or available to finance. This basis is typically used for governmental

activities, proprietary funds, and fiduciary funds.

For example, consider a city receiving a grant of $50,000 for a specific project.

Under modified accrual basis, the revenue would be recognized when the city

has legal claim to it and it is expected to be collected soon. If the city incurs

$30,000 of project-related expenses in the same period, the expenses would be

recorded. In contrast, under full accrual basis, the entire $50,000 grant would

be recognized as revenue upon receipt, regardless of when it will be spent, and

the $30,000 in expenses would also be recorded when incurred.

Question 9

Question 9:

Discuss the primary differences between GASB Statement No. 34 and GASB

Statement No. 45 in the context of governmental accounting standards.

Answer:

GASB Statement No. 34 focuses on financial reporting for governmental

entities, requiring governments to present financial statements including the

government-wide financial statements, fund financial statements, and notes to

the financial statements. It also introduces the Management’s Discussion and

Analysis (MDA) section to provide a narrative overview of the government’s

financial activities.

On the other hand, GASB Statement No. 45 deals with accounting and fi-

nancial reporting for post-employment benefits other than pensions. This stan-

dard focuses on recognizing the cost and liability for other post-employment

benefits (OPEB) when they are earned by employees, rather than when the

benefits are paid. Additionally, it requires governments to disclose informa-

tion about the actuarial valuation of OPEB plans and the assumptions used in

calculating the obligations.

Question 10

Question 10: Explain the concept of modified accrual accounting in the context

of governmental accounting.

Answer: Modified accrual accounting is a method commonly used by gov-

ernmental entities to record and report their financial transactions. Under this

approach, revenues are recognized when they become both measurable and avail-

able to finance the current period’s obligations. This means that revenues are

recognized when they are both earned and collected within a relatively short

period, typically within the fiscal year. On the other hand, expenditures are

recorded when the related liabilities are incurred, even if the actual payment

occurs in the following fiscal period. Modified accrual accounting ensures that

financial statements provide a more accurate representation of the government’s

current financial position and operating results.

Question 11

Question 11:

Explain the difference between fund-based accounting and government-wide

financial reporting in the context of governmental accounting.

Answer:

In governmental accounting, fund-based accounting is used to track and

report financial data for individual funds, such as the General Fund, Special

Revenue Funds, and Capital Projects Funds. Each fund operates as a separate

accounting entity with its own set of accounts and reports.

On the other hand, government-wide financial reporting consolidates all of

the funds of a governmental entity into a single set of financial statements. This

method provides a more holistic view of the government’s financial position and

results of operations. It includes all assets, liabilities, revenues, and expenses of

the government as a whole, similar to the financial statements of a private-sector

entity.

Fund-based accounting focuses on individual fund accountability, while government-

wide financial reporting emphasizes the overall financial health and performance

of the governmental entity as a whole. Both methods are crucial for stakeholders

to understand the financial activities and outcomes of the government.

Question 12

Question 12: Explain the concept of fund accounting in the context of gov-

ernmental entities. How does fund accounting help in achieving transparency

and accountability in the financial reporting of public funds?

Answer: Fund accounting is a system used by governmental entities to

record and track financial activities related to specific purposes or objectives.

This system categorizes resources into different funds based on their restrictions

and intended use. By segregating financial resources into various funds, such as

the general fund, special revenue funds, capital projects funds, and debt service

funds, governmental entities can better demonstrate how public funds are being

utilized in accordance with legal and budgetary requirements.

Fund accounting plays a crucial role in achieving transparency and account-

ability in the financial reporting of public funds by providing clear and detailed

information on the inflow and outflow of resources for each fund. Stakeholders,

including citizens, government oﬀicials, and oversight bodies, can easily track

and monitor how funds are being allocated and spent within specific programs

or activities. This level of transparency helps ensure that public funds are being

used eﬀiciently and effectively, thereby holding governmental entities account-

able for their financial decisions and actions.

Question 13

Question 13: Explain the key differences between the modified accrual basis

of accounting and the full accrual basis of accounting in governmental entities.

Answer: The modified accrual basis of accounting is typically used by gov-

ernmental entities for their operating funds. This method recognizes revenues

when they become both measurable and available to finance current expendi-

tures, and it recognizes expenditures when they result in liabilities being in-

curred. On the other hand, the full accrual basis of accounting, which is often

used for governmental enterprise funds and fiduciary funds, recognizes revenues

when they are earned and expenses when they are incurred, regardless of when

cash is received or paid. The full accrual basis provides a more comprehen-

sive and accurate representation of an entity’s financial position and results of

operations.

Question 14

Question 14:

Explain the concept of encumbrances in governmental accounting and their

impact on financial reporting. Provide an example to illustrate how encum-

brances are recorded and reported in the financial statements.

Answer:

Encumbrances in governmental accounting refer to commitments for goods

or services that have been ordered, but not yet received. These commitments

are recorded to prevent over-expenditure of the budget. Encumbrances impact

financial reporting by setting aside funds for future expenses, thereby showing

a more accurate picture of the entity’s financial position.

For example, if a city government orders oﬀice supplies totaling $5,000 in

July but the supplies are not delivered until August, an encumbrance of $5,000

would be recorded in July to reserve those funds. In the financial statements,

the encumbrance would be classified as a part of the expenditures but not as an

actual expense until the goods or services are received. When the supplies are

received in August, the encumbrance is liquidated, and the actual expenditure

of $5,000 is recorded.

Question 15

Explain the concept of modified accrual accounting as applied to governmental

entities. How does modified accrual accounting differ from full accrual account-

ing? Provide an example of a transaction that would be recorded differently

under each accounting method.

Answer

Modified accrual accounting is a method of accounting commonly used by gov-

ernmental entities, where revenues are recorded when they become both mea-

surable and available to finance current-year expenditures. On the other hand,

expenses are recognized when they contribute to the current period’s expendi-

tures.

The main difference between modified accrual accounting and full accrual

accounting is the timing of revenue and expense recognition. While modified

accrual accounting focuses on short-term financial resources and flow of finan-

cial resources, full accrual accounting records transactions when they occur,

regardless of when cash is received or paid.

For example, consider a city government collecting property taxes in advance

for the next fiscal year. Under modified accrual accounting, the city would

recognize the revenue when it is received and spend it in the future fiscal year

when it becomes available for expenditure. In contrast, full accrual accounting

would recognize the revenue when it is earned, regardless of when it is received,

and match it with the expenses incurred in the same period.

Question 16

0.1 Question 16: Governmental Accounting Standards and

Framework

Explain what is meant by the Modified Accrual Basis of Accounting in the

context of governmental accounting. Provide two examples of revenues and

expenditures that are typically recognized under this basis of accounting.

0.2 Answer

The Modified Accrual Basis of Accounting used in governmental accounting

is a hybrid method that combines elements of both cash and accrual basis ac-

counting. Under this approach, revenues are recognized when they become both

measurable and available to finance current-period expenditures. Expenditures

are recognized when they have been incurred, but with certain exceptions that

defer recognition until the related liabilities are due for payment.

Two examples of revenues recognized under the Modified Accrual Basis are:

1. Property taxes: Revenues from property taxes are recognized when they

are both legally enforceable and received within a relatively short period

after the end of the fiscal period.

2. Sales taxes: Revenues from sales taxes are recognized when the underlying

transactions occur, but when the tax is collected within a specified time

frame after the fiscal period.

Two examples of expenditures recognized under the Modified Accrual Basis

are:

1. Salaries and benefits: Expenditures related to employee salaries and ben-

efits are recognized when they are earned by employees, rather than when

the cash payments are disbursed.

2. Goods and services: Expenditures for goods and services are recognized

when the entity receives the goods or services, regardless of when the

payment is made.

Question 17

Question 17: Discuss the key differences between governmental accounting un-

der the GASB guidelines and financial accounting under the FASB (Financial

Accounting Standards Board) guidelines.

Answer: Governmental accounting, as governed by GASB standards, is

primarily concerned with accountability and transparency in reporting public

funds. Key differences include:

•Objectives: GASB focuses on meeting the needs of stakeholders such as

citizens, legislative bodies, and oversight agencies, while FASB is more

investor-oriented.

•Basis of accounting: GASB allows governments to choose between cash

basis or accrual basis, while FASB requires strictly accrual basis.

•Financial statements: GASB requires a separate government-wide finan-

cial statements set (including the Statement of Net Position and the State-

ment of Activities), whereas FASB does not have a government-wide set

of financial statements.

•Reporting entity: GASB includes component units as part of the overall

reporting entity, whereas FASB does not have a similar concept.

Question 18

Question 18: Explain the purpose and significance of the Comprehensive An-

nual Financial Report (CAFR) in governmental accounting. How does the

CAFR differ from the basic financial statements required by GASB?

Answer: The Comprehensive Annual Financial Report (CAFR) serves as

a detailed and extensive presentation of a government entity’s financial perfor-

mance and position. It provides a comprehensive overview of the entity’s finan-

cial activities, including historical trends, budgetary comparisons, and analysis

of various funds. The CAFR goes beyond the basic financial statements required

by GASB by including additional sections such as management’s discussion and

analysis, statistical information, and other supplementary information that pro-

vides a deeper understanding of the entity’s financial health. The CAFR is

designed to give stakeholders, including taxpayers, investors, and creditors, a

comprehensive view of the government’s financial operations and accountability.

Question 19

Question 19:

Explain the significance of the Modified Accrual Basis of Accounting in gov-

ernmental accounting. Provide two examples of transactions that would be

recorded differently under the Modified Accrual Basis compared to the Accrual

Basis.

Answer:

The Modified Accrual Basis of Accounting used in governmental accounting

combines elements of both cash and accrual basis accounting. It recognizes

revenues when they become available and measurable, and expenditures when

they are incurred and the liability is measurable.

Two examples of transactions that would be recorded differently under the

Modified Accrual Basis compared to the Accrual Basis are: 1. Capital asset

purchases: Under the Modified Accrual Basis, the acquisition of a capital asset

would not be recognized as an expenditure in the period it is purchased. Instead,

the cost would be capitalized and depreciated over its useful life. In contrast,

the Accrual Basis would recognize the full cost of the asset as an expenditure

in the period it is acquired. 2. Grants receivable: When a grant is awarded

to a governmental entity, under the Modified Accrual Basis, the amount of the

grant would be recognized as revenue when it is both measurable and available.

However, under the Accrual Basis, the revenue would be recognized when it is

earned, regardless of when the cash is received.

Question 20

Question 20: Explain the concept of modified accrual accounting in govern-

mental accounting. How does it differ from full accrual accounting?

Answer: Modified accrual accounting is a method used by governmental

entities to record revenues when they are both measurable and available to

finance current-year expenditures. This means that revenues are recognized

when they are both earned and collected within a reasonable period after the

fiscal year-end. On the other hand, full accrual accounting recognizes revenues

when they are earned, regardless of when they are received.

The key difference between modified accrual accounting and full accrual

accounting lies in the recognition of revenues. Modified accrual accounting

focuses on ensuring that funds are available to be spent in the current period

before recognizing the revenue, while full accrual accounting recognizes revenue

as soon as it is earned.

Question 21

Question 21: Explain the concept of interperiod equity in relation to governmen-

tal accounting standards. How does adhering to this concept ensure long-term

financial sustainability for governmental entities?

Answer: Interperiod equity refers to the concept of balancing revenues and

expenditures over multiple fiscal periods in order to avoid placing financial bur-

dens on future generations. By ensuring that current revenues are suﬀicient to

cover current expenses and obligations, governmental entities can achieve long-

term financial sustainability. Adhering to this concept promotes responsible

financial management practices, reduces the need for excessive borrowing, and

fosters a more stable financial future for the entity. Additionally, by maintaining

interperiod equity, governments can demonstrate transparency and accountabil-

ity to their citizens and stakeholders, which is a key principle of governmental

accounting standards set forth by the GASB.

Question 22

Question 22: Explain the significance of fund accounting in governmental

entities according to the GASB guidelines. Provide examples of different types

of funds and their purposes.

Answer: Fund accounting is a fundamental aspect of governmental ac-

counting as prescribed by the GASB. It involves segregating financial resources

into different funds based on their purpose, restrictions, and reporting require-

ments. The different types of funds commonly used in governmental accounting

include:

1. General Fund: This is the primary operating fund of a government entity

and is used to account for most of its financial resources and transactions, such

as tax revenues and day-to-day expenditures.

2. Special Revenue Fund: This fund is designated for specific revenue sources

that are restricted by law or regulation, such as grants, donations, or specific

taxes, with the purpose of financing particular government programs or initia-

tives.

3. Capital Projects Fund: This fund is used to account for financial resources

earmarked for the acquisition or construction of major capital assets, such as

buildings, infrastructure, or equipment, to ensure proper tracking and reporting

of these investments.

4. Debt Service Fund: This fund is set up to account for the accumulation

and payment of debt obligations, including principal and interest payments,

typically associated with long-term loans or bonds issued by the government

entity.

5. Enterprise Fund: This fund is used to account for operations that are

conducted like a business, where the cost of providing goods or services is in-

tended to be fully recovered through charges to users, such as utility services or

public transportation.

By categorizing resources into different funds, governmental entities can ef-

fectively manage, monitor, and report their financial activities, providing trans-

parency and accountability to stakeholders and ensuring compliance with GASB

guidelines.

Question 23

Question 23: Explain the significance of the Modified Accrual Basis of Ac-

counting in governmental financial reporting. How does it differ from the Ac-

crual Basis used in the private sector?

Answer: The Modified Accrual Basis of Accounting, as required by the

GASB, is specifically tailored to governmental entities to better align with their

unique revenue and expenditure patterns. It focuses on recognizing revenues

when they become both measurable and available to finance current-period ex-

penditures, rather than when they are earned. This approach provides a better

reflection of the short-term financial position of governmental entities.

In contrast, the Accrual Basis used in the private sector recognizes revenues

when earned and expenses when incurred, without consideration of their near-

term availability for spending. This method highlights the financial performance

of an organization over a longer period, emphasizing the matching of revenue

and expenses to accurately depict the entity’s profitability.

Overall, the Modified Accrual Basis in governmental accounting ensures that

public funds are managed in a way that prioritizes transparency, accountability,

and fiscal responsibility to stakeholders and the general public.

Question 24

Explain the significance of fund accounting in governmental accounting, as pre-

scribed by GASB standards.

Answer: Fund accounting is crucial in governmental accounting as it helps

segregate and track different types of public funds, ensuring transparency and

accountability. Each fund has its own set of financial statements and records to

accurately reflect the specific purpose and restrictions associated with the funds.

By using fund accounting, governmental entities can provide stakeholders with

clear and detailed information regarding the sources and uses of public funds,

thus promoting fiscal responsibility and trust in the financial management of

government entities.

Question 25

Describe the significance of the modified accrual basis of accounting in govern-

ment financial reporting.

Answer: The modified accrual basis of accounting used in government fi-

nancial reporting is significant because it allows for the recognition of revenues

when they become both measurable and available to finance current expendi-

tures. This method helps to provide a more accurate depiction of a government

entity’s financial position and resources available for spending. By focusing

on both short-term liquidity and long-term sustainability, the modified accrual

basis aims to ensure transparency and accountability in government financial

reporting.

Question 26

Question 26: What is the primary objective of the Governmental Accounting

Standards Board (GASB) in establishing accounting standards for governmental

entities?

A) To ensure consistency and comparability in financial reporting across all

government agencies.

B) To enhance transparency and accountability in the financial reporting of

governmental entities.

C) To reduce taxes and increase government revenue.

D) To regulate the spending of public funds by governmental entities.

Answer:B) To enhance transparency and accountability in the financial

reporting of governmental entities.

Question 27

Question 27: What is the purpose of the GASB Statement No. 34?

Answer: GASB Statement No. 34, also known as Basic Financial Statements—

and Management’s Discussion and Analysis—for State and Local Governments,

was issued to improve financial reporting by state and local governments. Its

primary objectives include:

1. Providing an overview of the government’s finances, including highlight-

ing major funds and presenting a comprehensive picture of its financial

position.

2. Enhancing the transparency and accountability of financial reporting to

stakeholders, such as taxpayers, investors, and creditors.

3. Improving the understanding of the government’s financial health and

performance over time through comparative financial statements.

Question 28

Question 28: What is the purpose of the Governmental Accounting Standards

Board (GASB) in the context of governmental accounting?

Answer: The Governmental Accounting Standards Board (GASB) is re-

sponsible for establishing and improving accounting standards for state and

local governments in the United States. The primary purpose of the GASB

is to provide guidance on financial reporting in order to enhance transparency,

accountability, and comparability in governmental financial statements. By set-

ting standards for how public funds are recorded and reported, the GASB helps

ensure that stakeholders have access to reliable and relevant financial informa-

tion.

Question 29

Question 29:

Explain the purpose of the Comprehensive Annual Financial Report (CAFR)

in governmental accounting. How does it differ from the basic financial state-

ments that governmental entities are required to prepare?

Answer:

The Comprehensive Annual Financial Report (CAFR) in governmental ac-

counting serves as a comprehensive and detailed presentation of a government

entity’s financial position and activities. It goes beyond the basic financial

statements required by GASB to provide additional information and analyses

to enhance transparency and help stakeholders make informed decisions.

While the basic financial statements (such as the statement of financial posi-

tion, statement of activities, statement of cash flows) are a core requirement for

governmental entities, the CAFR includes supplementary information like man-

agement’s discussion and analysis (MDA), statistical sections, and other details

that offer a more holistic view of the entity’s financial health and performance.

The CAFR is generally considered a more comprehensive and transparent re-

porting tool compared to the basic financial statements required by GASB.

Question 30

Question 30: Explain the concept of fund accounting in governmental account-

ing and discuss how it contributes to financial transparency and accountability

in public sector organizations.

Answer: In governmental accounting, fund accounting is a system that

tracks financial resources according to their intended purpose. This system is

essential because government entities often have various funds designated for