Definitions for "Account groups"
Because governments make a sharp distinction between current and long term items, governmental financial statements need a place to put long term activities (i.e. assets and liabilities). Account groups are used for this purpose. Since account groups are considered memoranda, they do not need to follow strict accounting rules. For example, long- term debt may be backed only by the full faith and credit (i.e. the taxing and borrowing power), not any current assets.