SPECIAL WAYS OF SETTLING LIABILITIES TO BENEFICIARIES OF PUBLIC FUNDS

Abstract

In their business, public sector entities have business cycles that are constantly circulating and thus lead to growth and development. In order for business cycles to be closed, ie to create opportunities for starting a new cycle, working capital necessary for work must be provided. Usually, the sale of products secures receivables that are later converted into money and thus represent the basis of a new business cycle. On the other hand, the company's obligations must be settled in order to create the balance necessary for business. In addition to this usual way of closing the cycle, it is sometimes not possible to close the business cycle in this way, so alternative (special) ways of settling liabilities or collecting receivables are resorted to. These special ways are various, but we will focus on: compensation, assignment, cession.