Government departments are now required to embrace traditional accounting methods.The broad effect of this requirement is to:

Question

Quizplus · Accepted Answer

The requirement to embrace traditional accounting methods refers to the adoption of accrual accounting, which recognizes revenue when earned and expenses when incurred, with an emphasis on profit. This is different from cash accounting, which records revenue when received and expenses when paid (option B). Additionally, value added reporting is not specifically mentioned as a requirement (option D). Therefore, option C is the best choice.

Government Departments Are Now Required to Embrace Traditional Accounting Methods