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Accounting

Compare the basis of accounting that is used to report governmental activities versus business-type activities.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 19MC: What type of organization primarily offers tax compliance, auditing, and consulting services? A....

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Question

Compare the basis of accounting that is used to report governmental activities versus business-type activities.

Expert Solution

Step 1

Governmental activities refer to the activities that are undertaken for the welfare of the people and the benefit of society.

Business activities refer to the activities that are performed with a purpose to generate revenue.

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