Question

1B.Write on the differences between the following terms

Public accounts-	Private accounts-
Government accounting	Commercial accounting-
Cash accounting basis	Accrual accounting basis
Revenue	Income
Tax revenue	Non-tax revenue
The executive	The legislative
Government budget	Incremental budget
Recurrent expenditure	Capital expenditure
Internal audit	External audit
IPSAS 1	IAS 1

Answer 1

1	Public accounts: Public accounting is being part of an independent or a third party company and provide accounting services for other companies. These accountants provide services to a wide range of clients.	Private accounts: Private accounts on the other hand are maintained for a specific company or business entity only. Here accountants provide accounting services only for a specific company or business entity.
2	Government Accounting : Government accounting is maintained by the government offices to know the postion of the public fund	Commercial Accounting : Commercial accounting is maintained by business organisations to know the profit or loss and the financial position of the business
3	Cash accounting basis Here, revenues are reported on tge income statement in the period in which the cash is recieved from customers and expenses are reported on the income statement when the cash is paid out.	Accrual accounting basis Here, Revenues are reported on the income statement when they are earned which occurs before the cash is recieved from the customers. Expenses are reported on the income statement in the period when they occur or when they expire.
4	Revenue Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations	Income Income is a company's total profit. When investors speak of company's income it means tge profit of the company
5	Tax revenue Tax revenue is solely the tax paid from the taxation paid by tax payers.	Non Tax revenue Non Tax revenue is generated from items other than regular taxes.
6	The Executive Executive is that branch of government which enables and implement the actions and decisions of the government.	The legislative Legislative is that institution which consist of tge representative of the people. Its main objective is to discuss and debate on yhe issues of the country.
7	Government budget Government budgeting is a budgeting method where current year's budget is prepared from tge scratch.	Incremental budget Incremental budgeting is a budgeting method where current year's budget is prepared by making changes in the past year's budget
8	Recurrent Expenditure All payments other than capital assets including goods and services, interest, payments, subsidies and transfer.	Capital Expenditure All payments for acquisition of fixed capital assets, stock, land or intangible assets.
9	Internal audit Internal Audit is not compulsory by nature but can be performed to review the operational activities of the organisation.	External audit External audit is obligatory for every seperate legal entity.
10	IPSAS1 Fundamental principles underlying the preparation of finanacial statements, accrual basis of accounting and aggregation and materiality.	IAS1 The standard requires a complete set of finanacial statements to comprise a statement of financial position.