Explain Why Other Comprehensive Bases of Accounting (OCBOA)may Be Used

question 22

Essay

Explain why other comprehensive bases of accounting (OCBOA)may be used by a state or local government instead of GASB standards which are generally accepted accounting principles (GAAP).

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Definitions:

Net Profits

The amount of money that remains from revenues after all operating expenses, taxes, and interest have been deducted.

Performance Period

The specific timeframe over which the output or effectiveness of an activity or individual is measured.

Reinforcement Theory

A motivational theory suggesting that people are likely to repeat behavior that is rewarded and avoid behavior that is punished.

Operant Conditioning

An educational method where the intensity of an action is altered through rewards or penalties.