Organizing accounting classes

Organizing accounting classesOrganizing a class-4 relating to the accountability of the revenue, cost, profit and investment in terms of public sector accounting.1. RevenueIn government, the income obtained repeatedly (reflective) to finance expenditure in a particular financial year, while for the following year, a similar income can be obtained again. Revenue revolusing here is not that the point can not be played again for spending the years to come. This is very different from the company with a profit motive, where revenues this year can be saved for use in future years.Revenue in the government largely derived from tax revenues that are forced (compulsory) in which the revenue, the government has no obligation to provide a direct payoff to the tax payers. While the company's business, revenues derived from those who voluntarily require goods or services, and there is a direct obligation of the company to the buyer of goods or services.Understanding governmental accounting income in the most common sense prevailing in financial accounting, that "as a result of operations". But in government accounting as well as acceptance of long-term loans and the sale of fixed assets. In financial accounting, these two things can not be digolongan as revenue (income). Revenues are inflows or other improvement on the property of an entity or settlement of its obligations during the period of delivery or production of goods, provision of services, or other activities that constitute the principal or major surgery sustained from the force.Revenue recognized under the cash basis when received on account of the public treasury countries / regions or by the reporting entity. Revenues are recognized according to the accrual basis at the time of onset of the rights to that income. Recognition of local government revenues can be determined without regard to whether the money has been received in cash or not. So the public sector or government accounting is adopted accrual basis.2. LoadIn accounting terms are expense (expense), while the government does not use the term accounting expense but expenditure (roughly translated expenditure or expenditure).Expenditure has a broad sense compared ith expense, which in addition to having the same meaning as expense, also included are all government payments in exchange for goods and services, both in the form of wages and salaries to employees, purchases of goods and services and repayment installments or long-term debt.Cost accounting in the public sector can be categorized into three groups, namely:1) Input Costs2) Cost of Output3) Cost of process3. Profit4. InvestmentGovernment invests substantial funds in assets that do not directly generate revenue, such as office buildings, bridges, roads, parks and reservation areas. In addition, most of these assets have a long useful life and require maintenance and rehabilitation program to maintain the benefits to be achieved. Thus, the function of these assets to the government is very different from the function for commercial organizations.Assessment of investment in the public sector is substantially more complicated than those in the private sector. Investment appraisal techniques used in the private sector designed for profit-oriented organizations. While public organization is an organization that is not profit-oriented, so sometimes these techniques can not be applied to the public sector. In addition it is difficult to measure the resulting output, so as to determine future gains in financial measures (expected return) can not (difficult) done.Assessment of investment in public organizations is done using cost-benefit analysis (cost-benefit analysis). In practice, there are difficulties in determining the costs and benefits of the investments made. This is because the costs and benefits should be analyzed not only in terms of financial alone but should include social costs (social costs) and benefits (social benefits) that will result from the proposed investment. Determining the social costs and social benefits in monetary units is very hard to do. Therefore, investment appraisal using cost-benefit analysis in the public sector difficult. For convenience, it can be used cost-effectiveness analysis (cost-effectiveness analysis).