Question 1

A Government Trading Enterprise is 'corporatised' when it is restructured into a company and:

Accepted Answer

A)   special legislation controls its activities
B)   all the shares are held by the government
C)   all the shares are held by private investors
D)   some of the shares are held by the government and some are held by private investors

Question 2

When a Government Trading Enterprise is restructured into a company and at least some shares are held by private investors it is said to be:

Accepted Answer

A)   corporatised
B)   privatised
C)   publicised
D)   globalised

Question 3

Compare government financial statistics with the general purpose GAAP reporting models.

Accepted Answer

Government financial statistics and the ...

Question 4

Government departments should be classified as 'reporting entities' in accordance with Statement of Accounting Concepts SAC 1:

Accepted Answer

A)   because the Auditor-general requires that they prepare financial reports
B)   because individual Members of Parliament rely on the financial reports for information to help them carry out their responsibilities
C)   because individual government departments require financial reports for internal management purposes
D)   for all of the above reasons

Question 5

In Australia,postal services and police services would be classified respectively as:

Accepted Answer

A)   government department: government department
B)   government trading enterprise: government trading enterprise
C)   government trading enterprise: government department
D)   government department: government trading enterprise

Question 6

Who are the likely main users of general-purpose financial reports of (a)governments and (b)private sector businesses? Briefly outline why each user group listed under (a)might be interested in the general-purpose financial reports of governments.Then explain the reasons for any similarities and/or any differences between the two lists of users.

Accepted Answer

The likely main users of general-purpose...

Question 7

AASB 1052 requires:

Accepted Answer

A)   local governments to disclose financial information by function
B)   government departments to disclose financial information about service costs and achievements
C)   government departments to disclose the assets deployed and the liabilities incurred by each of their activities
D)   all of the above

Question 8

Compare and contrast the main features of 'fund accounting' and of 'accrual accounting' as they apply to the government (or public)sector of the economy.

Accepted Answer

Fund accounting and accrual accounting a...

Question 9

For financial reporting purposes,public sector operations are classified into the broad groupings:

Accepted Answer

A)   government trading enterprises, government departments, whole of government
B)   government trading enterprises and government departments
C)   the house of representatives and the senate
D)   none of the above

Question 10

Characterisitic(s) of a GTE may include:

Accepted Answer

A)   they are sometimes in competition with private enterprise
B)   they pay dividends to government
C)   they are in the business of selling goods and services to the public
D)   all of the above

Question 11

Rowles (1992)concludes that there is no difference between investments such as in roads and drains made by public sector entities and assets such as blast furnaces made by the private sector.Discuss this view in the light of accounting for infrastructure and heritage assets.

Accepted Answer

Rowles (1992) argues that there is no di...

Question 12

The 'fund accounting' system previously used by government departments:

Accepted Answer

A)   is very similar to conventional accrual accounting
B)   is based wholly on cash receipts and expenditures
C)   maintains a distinction between operating and capital expenditure
D)   operates over a three to four year cycle, based on the normal period between elections

Question 13

The main issues relating to the recognition of land under roads include:

Accepted Answer

A)   uncertainty about which entities control land under roads
B)   there is no recognised method for reliably measuring land under roads
C)   there is no direct economic benefits associated with land under roads
D)   all of the above

Question 14

The Australian federal government should report regularly about the results of its operations and its financial position because:

Accepted Answer

A)   electors can then assess the quality of management of the resources controlled by government
B)   it is required under the Corporations Law
C)   the Senate (the upper house of the federal parliament)  demands it
D)   it is required under the Australian Constitution

Question 15

It can be argued that 'heritage assets' deserve special accounting treatment as they are different from all other types of assets because:

Accepted Answer

A)   they cannot be replaced and will be preserved indefinitely
B)   they are owned by the government
C)   they are not readily saleable or have no market value
D)   all of the above A

Question 16

All of these are current differences between Government Finance Statistics (GFS) and Generally Accepted Accounting Principles (GAAP) reporting,except:

Accepted Answer

A)   GPS has two performance statements whereas GAAP has only one statement of financial performance
B)   GPS requires all borrowing costs to be recognised as expenses whereas GAAP, in some circumstances, allows them to be capitalised
C)   GFS only recognises bad debts when they are written off and does not recognise expenses arising from establishing a provision for doubtful debts, whereas GAAP recognises expenses arising from establishing a provision for doubtful debts
D)   Accrual accounting only applies to GAAP not to GFS D

Question 17

Arguments against the adoption of accrual accounting,and hence for the retention of fund accounting,for the government sector include:

Accepted Answer

A)   there is more continuity with fund accounting
B)   fund accounting provides a better picture of the public sector's assets and liabilities than is possible under accrual accounting
C)   fund accounting is best suited to meet the accountability objective of public sector financial reporting
D)   fund accounting allows a measurement of the full cost of providing goods and services

Question 18

All of these are essential features of most of the definitions of infrastructure assets,except:

Accepted Answer

A)   they are usually very profitable
B)   they are necessary to sustain living standards
C)   they are generally immovable
D)   none of the above, i.e., all are essential features of infrastructure assets A

Question 19

When the legislation that creates a public sector entity also specifies particular accounting methods to be used or disclosures to be made,these requirements:

Accepted Answer

A)   are in addition to those required by AASB's
B)   allow the government entity to select the method that best reflects the economic circumstances
C)   are superceded by the requirements of AASB standards
D)   may be disregarded if the requirements of AASB 101 are met

Exam 25: Financial Reporting in the Public Sector

A Government Trading Enterprise is 'corporatised' when it is restructured into a company and:

Correct Answer
verified

When a Government Trading Enterprise is restructured into a company and at least some shares are held by private investors it is said to be:

Correct Answer
verified

Compare government financial statistics with the general purpose GAAP reporting models.

Correct Answer
Answered by ExamLex AI
Government financial statistics and the ...
View Answer

Government departments should be classified as 'reporting entities' in accordance with Statement of Accounting Concepts SAC 1:

Correct Answer
verified

In Australia,postal services and police services would be classified respectively as:

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The likely main users of general-purpose...
View Answer

AASB 1052 requires:

Correct Answer
verified

Compare and contrast the main features of 'fund accounting' and of 'accrual accounting' as they apply to the government (or public)sector of the economy.

Correct Answer
Answered by ExamLex AI
Fund accounting and accrual accounting a...
View Answer

For financial reporting purposes,public sector operations are classified into the broad groupings:

Correct Answer
verified

Characterisitic(s) of a GTE may include:

Correct Answer
verified

Rowles (1992)concludes that there is no difference between investments such as in roads and drains made by public sector entities and assets such as blast furnaces made by the private sector.Discuss this view in the light of accounting for infrastructure and heritage assets.

Correct Answer
Answered by ExamLex AI
Rowles (1992) argues that there is no di...
View Answer

The 'fund accounting' system previously used by government departments:

Correct Answer
verified

The main issues relating to the recognition of land under roads include:

Correct Answer
verified

The Australian federal government should report regularly about the results of its operations and its financial position because:

Correct Answer
verified

It can be argued that 'heritage assets' deserve special accounting treatment as they are different from all other types of assets because:

Correct Answer
verified
A

All of these are current differences between Government Finance Statistics (GFS) and Generally Accepted Accounting Principles (GAAP) reporting,except:

Correct Answer
verified
D

Arguments against the adoption of accrual accounting,and hence for the retention of fund accounting,for the government sector include:

Correct Answer
verified

All of these are essential features of most of the definitions of infrastructure assets,except:

Correct Answer
verified
A

When the legislation that creates a public sector entity also specifies particular accounting methods to be used or disclosures to be made,these requirements:

Correct Answer
verified

Exam 25: Financial Reporting in the Public Sector

A Government Trading Enterprise is 'corporatised' when it is restructured into a company and:

Correct AnswerverifiedShow Answer

When a Government Trading Enterprise is restructured into a company and at least some shares are held by private investors it is said to be:

Correct AnswerverifiedShow Answer

Compare government financial statistics with the general purpose GAAP reporting models.

Correct AnswerAnswered by ExamLex AIGovernment financial statistics and the ...View AnswerShow Answer

Government departments should be classified as 'reporting entities' in accordance with Statement of Accounting Concepts SAC 1:

Correct AnswerverifiedShow Answer

In Australia,postal services and police services would be classified respectively as:

Correct AnswerverifiedShow Answer

Correct AnswerAnswered by ExamLex AIThe likely main users of general-purpose...View AnswerShow Answer

AASB 1052 requires:

Correct AnswerverifiedShow Answer

Compare and contrast the main features of 'fund accounting' and of 'accrual accounting' as they apply to the government (or public)sector of the economy.

Correct AnswerAnswered by ExamLex AIFund accounting and accrual accounting a...View AnswerShow Answer

For financial reporting purposes,public sector operations are classified into the broad groupings:

Correct AnswerverifiedShow Answer

Characterisitic(s) of a GTE may include:

Correct AnswerverifiedShow Answer

Rowles (1992)concludes that there is no difference between investments such as in roads and drains made by public sector entities and assets such as blast furnaces made by the private sector.Discuss this view in the light of accounting for infrastructure and heritage assets.

Correct AnswerAnswered by ExamLex AIRowles (1992) argues that there is no di...View AnswerShow Answer

The 'fund accounting' system previously used by government departments:

Correct AnswerverifiedShow Answer

The main issues relating to the recognition of land under roads include:

Correct AnswerverifiedShow Answer

The Australian federal government should report regularly about the results of its operations and its financial position because:

Correct AnswerverifiedShow Answer

It can be argued that 'heritage assets' deserve special accounting treatment as they are different from all other types of assets because:

Correct AnswerverifiedA

All of these are current differences between Government Finance Statistics (GFS) and Generally Accepted Accounting Principles (GAAP) reporting,except:

Correct AnswerverifiedD

Arguments against the adoption of accrual accounting,and hence for the retention of fund accounting,for the government sector include:

Correct AnswerverifiedShow Answer

All of these are essential features of most of the definitions of infrastructure assets,except:

Correct AnswerverifiedA

When the legislation that creates a public sector entity also specifies particular accounting methods to be used or disclosures to be made,these requirements:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Government financial statistics and the ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The likely main users of general-purpose...
View Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Fund accounting and accrual accounting a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Rowles (1992) argues that there is no di...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified