The Public Sector Accounting Board (PSAB)has identified a number of characteristics that differentiates governmental reporting from private sector reporting.Which of the following is one of those characteristics?

Question

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Governments often have unique and specialized assets, such as roads, bridges, and public infrastructure, which are not typical in the private sector. These assets require special accounting treatment and reporting standards, which are distinct from private sector reporting. Options A and B are incorrect because the goal of a government is typically to balance the budget or provide services to citizens, not make a profit. Additionally, the focus of governmental capital spending is not to maximize returns, it is to provide essential public services. Option D is incorrect because there is no inherent limit on the debt capacity of governments, as they can borrow to finance their activities.

The Public Sector Accounting Board (PSAB)has Identified a Number of Characteristics