“Context – Expenditure or Expenses” Please respond to the following:
- Distinguish between and define the terms “expenditures” and “expenses”, referencing material in the textbook and within the GASB accounting standards, as well as other appropriate references. Suggest why this distinction is of such importance and consideration to governmental entities in comparison to corporations. Provide a rationale for you suggestion.
- Determine which aspects of governmental reporting provide the rationale for the emphasis on expenditures rather than full accrual expenses, as used in Generally Accepted Accounting Principles (GAAP). Provide a rationale for your determination.