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Expenditure or Expenses
Context - Expenditure or Expenses"Participate in the following activities in order to complete the discussion:
• Distinguish between and define the terms "expenditures" and "expenses", referencing material in the textbook and within the GASB accounting standards, as well as other appropriate references. Suggest why this distinction is of such importance and consideration to governmental entities in comparison to corporations. Provide a rationale for you suggestion.
• Determine which aspects of governmental reporting provide the rationale for the emphasis on expenditures rather than full accrual expenses, as used in Generally Accepted Accounting Principles (GAAP). Provide a rationale for your determination.
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Presume that Denmark and France both wine and produce oil. France's opportunity cost of producing a bottle of wine is 5 barrels of oil while Denmark's opportunity cost of producing a bottle of wine is 10 barrels of oil.
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