What Are the Possible Differences That May Occur Between a State

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The Answer is There are four types of differences that may occur-basis of accounting, timing, perspective, and reporting entity differences.
Basis of accounting differences arise when the government prepares its budget on a cash basis or other basis not consistent with the modified accrual basis accounting required for GAAP financial statements of governmental funds.
Timing differences occur when governments appropriate resources for a particular project rather than for a particular period. In addition, governments may permit departments or functions to carry over resources not spent in one period to the next budgetary period.
Perspective differences occur when governments prepare their budgets based on the types of functions or programs they plan to provide, not based on the funds in which they report these activities (which could include several funds).
Reporting entity differences occur when legally separate activities for which the government does not prepare a budget are required by GAAP to be included in the government's financial statements.

What Are the Possible Differences That May Occur Between a State

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What Are the Possible Differences That May Occur Between a State

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