“The Making of Economic Society” | Accounting Basis Brief Essay

The difference between the basis of accounting and measurement focus is very substantial because the basis of accounting focuses not only on the accuracy, as is the case of the measurement focus, but also on the balance between financial resources, revenues and expenses and other issues.  The measurement focus shows what is being measured, while the basis of accounting shows how it is being reported into the accounts (Heilbroner & Milberg, 2000). Measurement focus is used for all funds, including government and private ones, whereas accounting basis uses only funds of the specific government agency or any other organization.

The difference between the economic resources measurement focus and the current financial resources measurement focus is that the latter focuses on the cash and assets that will be converted into cash within the accounting period, or shortly thereafter, whereas the former, i.e. the economic resource measurement, measures all assets that are available to the entity, including not only cash or assets that will be converted into cash soon (Heilbroner & Milberg, 2000). Both the economic resources measurement focus and the current financial resources measurement are used by government agencies to assess their current financial performance and their economic potential in a long-run perspective.

The difference between the accrual and modified accrual bases of accounting is substantial. The accrual basis of accounting is used to record revenues during the period when they are earned and become measureable (Heilbroner & Milberg, 2000). The modified accrual basis of accounting requires that revenues to be reported, when they become available and measurable (Heilbroner & Milberg, 2000). In such a way, the accrual basis of accounting uses focuses on revenues earned by government agencies within the period, when revenues are earned and remain measurable, while the modified accrual basis of accounting is used at the moment, when government agencies earn measurable revenues and have to report about them.

 

References:

Heilbroner, R. L. and W. Milberg. (2000). The Making of Economic Society. New York: New Press.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: November 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: November 27, 2021]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: November 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 27, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 27, 2021]
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