Much  has  been  written  on  the  content  and  form  of  the
balance  sheet  and  much  importance  has  been  attached  to  the
technicalities  involved  in  its  preparation.  The  position  is  here
taken  that  the  question  of  accounting  technique  is  of  second-
ary importance.  The  controlling  consideration  should  be  that
of  presenting  the  facts  needed  to  give  officers  and  the  public
an  easy  and  accurate  interpretation  of  financial  condition.
In  commercial  business,  the  balance  sheet  rarely  has  more
than  a  small  circulation,  since  the  persons  interested  in  it —
proprietors  and  their  agents,  trade  creditors,  banks  and  bank-
ers— are  comparatively  few  in  number.  A  commercial  balance
sheet  may,  therefore,  be  expressed  in  highly  technical  terms
and  may  be  presented  in  a  special  form  in  order  to  meet  the
peculiar  desires  of  the  individuals  interested.  In  the  case  of  a
government,  financial  condition  is  a  subject  that  necessarily
concerns,  or  should  concern,  a  large  number  of  persons  of  all
degrees  of  education  and  experience.  Under  such  conditions
the  force  of  the  balance  sheet  may  be  largely  lost  unless  the
facts  are  expressed,  both  in  the  clearest  possible  language  and
in  the  most  simple  and  logical  form.
In  a  government  executive,  action  relating  to  assets  and  lia-
bilities must  be  governed  by  a  recognition  of  two  general
classes  of  responsibilities,  ( 1 )  those  of  the  government  as  a  pro-
prietor, and  (2)  those  of  the  government  as  a  spending  agent.
Responsibilities  of  the  Government  as  Proprietor.  As
proprietor  a  government  has  the  same  responsibilities  as  a  pri-
vate person  or  corporation.  These  responsibilities  consist  of
the  management  of  possessions  and  the  payment  of  debt,  and
may  be  summarized  as  follows :
A.     The  management  of  possessions.
1.  The  safe  custody  and  effective  distribution  of  cash.
