Terminologies Used In Public Sector Account - SS3 Accounting Lesson Note

Appropriation: An appropriation is the legal authority granted by a legislative body to spend money from a particular fund for a specific purpose.

Revenue: Revenue is the money earned by a government or public organization from its operations or other sources, such as taxes and fees.

Expenditure: An expenditure is the money spent by a government or public organization to fulfill its obligations and achieve its objectives.

Budget: A budget is a financial plan that outlines the expected revenue and expenditure for a specific period, usually a fiscal year.

Accrual accounting: Accrual accounting is a method of accounting that records revenue and expenditure when they are earned or incurred, rather than when the money is received or paid.

Fiscal year: A fiscal year is a 12-month period that a government or public organization uses for financial reporting and budgeting purposes.

Financial statement: A financial statement is a document that summarizes a government or public organization's financial performance, including its revenue, expenditure, assets, and liabilities.

Internal controls: Internal controls are procedures put in place by a government or public organization to ensure that its financial transactions are accurate, complete, and secure.

Audit: An audit is a review of a government or public organization's financial records and processes by an independent auditor to ensure compliance with accounting standards and regulations.