Which of the following does not relate to government accounting system?
The correct answer is D. profit and loss account
The correct answer is D. Profit and Loss Account.
In the context of government accounting, a profit and loss account is not typically used.
Government accounting primarily focuses on budgeting and expenditure control, rather than profit generation which is a key focus in commercial accounting.
Therefore, terms like “vote”, “trial balance”, and “consolidated fund” are more commonly associated with government accounting.
- A “vote” refers to the approval of budgetary allocations for various government departments and projects.
- A “trial balance” is a standard accounting tool used to check the correctness of the ledger accounts.
- The “consolidated fund” is a term often used in public finance to refer to the main bank account of the government.
On the other hand, a “profit and loss account” is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period.
This concept is more relevant to businesses in the private sector that aim to generate profits.
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