State any four differences between government accounting and commercial accounting. |
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| Ans : The four differences between government accounting and commercial accounting are as follows:
Bases of Difference Government Accounting Commercial Accounting
Use It is used to record revenues and expenditures of the government. It is used to record financial transactions of business firms to determine the amount of profit or loss.
Communication It provides information relating receipts, disposition and transfer of public by legal provisions It provides information about the firm’s performance and financial condition.
Basis It is based on the cash basis of accounting system. It is based on cash and accrual basis of accounting system.
Auditing process Government accounts are audited by the constitutional body i.e. office of the Auditor’ general. Commercial accounts are audited by the professional persons licensed as auditors.
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