Briefly Discuss How Governmental Budgeting Differs from Budgeting for Businesses

question 92

Essay

Briefly discuss how governmental budgeting differs from budgeting for businesses.

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Definitions:

Profit/Loss

Financial metrics indicating the net earnings or deficits incurred by an entity over a particular period, calculated as the difference between revenues and expenses.

Reportable Segment's Equity

The portion of equity attributable to business segments that must be disclosed separately in financial statements according to regulatory requirements.

Reconciliations

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement, typically used in accounting to check the accuracy of financial records.

Listed Entities

Companies whose stocks are traded on a public stock exchange, making their shares available for purchase by the general public.