Public Sector Accounting refers to the process of recording, analyzing, and reporting financial transactions for government entities and organizations that operate in the public sector. This type of accounting ensures transparency and accountability in the use of public funds, which are derived from taxpayers. It involves budgeting, financial reporting, and auditing to maintain proper oversight of public resources. The primary goal of Public Sector Accounting is to provide stakeholders, including citizens and government officials, with accurate financial information. This helps in making informed decisions regarding resource allocation and assessing the effectiveness of public programs and services.