Governmental accounting
In one sentenceA branch of accounting serving government entities; it focuses on recording appropriations in the public budget, tracking spending against them and accountability for public funds.
Simply put
A government entity does not seek profit, so its key question is: was the money spent on what it was appropriated for? That is why governmental accounting tracks every budget line: appropriated, committed, spent and remaining.
Internationally there are standards specific to the public sector, known as IPSAS, which differ in many details from the standards for commercial businesses.
Example
A government entity was appropriated a maintenance line in the budget for a set amount, so its accounting records every maintenance order committed against that line and blocks spending if it exceeds the remaining balance.
Don't confuse it with
Financial accountingFinancial accounting measures a business's profit and financial position, while governmental accounting focuses on compliance with the approved budget.