Which of the following is a reason that governmental accounting is different from business accounting?

Question

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The long-life of governments, as compared to business enterprises, is a reason that governmental accounting is different. To illustrate, the GASB allows the difference between projected and actual earnings for pension investments to be reported as either as deferred inflows of resources or deferred outflows of resources and recognized as an expense over a five-year period rather than being reported immediately as an expense. This will be discussed in more detail in Chapter 8.

Which of the Following Is a Reason That Governmental Accounting