In business practice we are accustomed to using 'expenses.' In governmental accounting, you will be using expenditures and expenses. Describe the major distinction between the two and discuss the importance of using the right terminology properly.

Describe how the accrual concept is applied in governments on one of the following expenses: compensated absences, pension and OPEB, claims and judgments, inventories, prepayments, capital assets, and principal and interest payment on debt; as opposed to business.

A government entity that is under pressure to balance their budget decided to delay the salaries and wages from the last day of the month to the first day of the following month. This resulted in one fewer pay period in the year of change. How would the change affect the reported expenditures of a governmental fund under GAAP?