Question

The importances of studying Public Sector Accounting?

Answer 1

Please find below answer on importance of studying Public sector accounting:

Public sector is accounting method applied to nonprofit motive organization which includes central and state local government for which profit does not provide an effective measurement for evaluating performance.

Below points shows importance of public sector accounting

1.To ascertain the audacity of transactions and their compliance with the established laws, rules and statues.

2.Providing evidence of stewardship.

3. It helps in assisting in planning and controlling of day to day operations.

4.It also helps in understanding the business nature of organization and helps in objective and timely reporting.

5.Providing the basis of decision making.

6. This helps in apply recognized private sector management tools in the public sector.

7.This helps in creating discipline and frugality of resources.

8. This helps in creating accountability which makes clear assignment of reusability, not diffusion of power.

9. Need for explicit formal measurable standards and measure of performance