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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PSAB has identified that tangible capital assets are viewed differently by governments than the private sector. This is because governments may acquire assets for public use or service delivery rather than for generating profit, which means they may prioritize different factors when valuing and reporting on these assets. Options A and B are incorrect because making a surplus is not always the primary goal of government accounting, nor is maximizing returns on capital spending. Option D is incorrect as governments may have varying degrees of debt capacity depending on their financial situation and borrowing policies.

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