Deferred revenues in governmental fund accounting

Reference no: EM13144303

The term deferred revenues seems out of place in governmental fund accounting. It would seem that a government either has or does not have expendable financial resources as a result of a property tax, grant, or other revenue transaction. Furthermore, no similar concept, such as deferred working capital, is used in business accounting. Explain the use of the term deferred revenues in governmental fund accounting.

Reference no: EM13144303

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