In government accounting , the method used which records on the basis of financial entity
FINANCIAL
JAMB 2018
In government accounting , the method used which records on the basis of financial entity with self balancing books instead of entity of propietorship is?
- A. virement
- B. fund accounting
- C. consolidated fund
- D. financial regulation
Correct Answer: B. fund accounting
Explanation
Fund accounting is an accounting system for recording resources whose use has been limited by the donor, grant authority, governing agency, or other individuals or organisations or by law. It emphasizes accountability rather than profitability, and is used by Nonprofit organizations and by governments. In this method, a fund consists of a self-balancing set of accounts and each are reported as either unrestricted, temporarily restricted or permanently restricted based on the provider-imposed restrictions.
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