Unlock hundreds more features
Save your Quiz to the Dashboard
View and Export Results
Use AI to Create Quizzes and Analyse Results

OR
Sign inSign in with Facebook
Sign inSign in with Google
Quizzes > Quizzes for Business > Government

Public Administration Accounting Quiz Challenge

Sharpen Your Public Sector Accounting Skills

Difficulty: Moderate
Questions: 20
Learning OutcomesStudy Material
Colorful paper art depicting questions for Public Administration Accounting Quiz

Looking to test your grasp on public sector finance? Joanna Weib invites students and professionals to explore this engaging public administration accounting quiz, designed to challenge even seasoned learners. Featuring practical scenarios and government accounting questions, this free quiz can be customized in our editor to suit various learning needs. Ready for more - try the Public Administration Regulations Quiz or deepen your understanding with the Accounting Knowledge Assessment Quiz. Explore additional quizzes for targeted practice in public administration topics.

Which term describes the difference when actual expenditures exceed budgeted expenditures?
Unfavorable variance
Committed variance
Favorable variance
Neutral variance
An unfavorable variance occurs when actual expenditures are greater than what was budgeted. It indicates overspending relative to the approved budget. This term helps managers identify where controls may need strengthening.
In fund accounting, which fund type is used to account for general government operations?
Capital projects fund
General fund
Special revenue fund
Enterprise fund
The general fund is the primary operating fund of a government and accounts for all financial resources except those required to be accounted for in another fund. It funds routine government services. Other funds are used for specific purposes or business-type activities.
Under GAAP for governments, which basis is used in fund statements for governmental funds?
Equity basis
Full accrual basis
Cash basis
Modified accrual basis
Governmental funds use modified accrual accounting under GAAP for governments. Revenues are recognized when they are both measurable and available. Expenditures are recorded when the related fund liability is incurred.
Under GASB standards, which financial statement reports assets, liabilities, and net position?
Statement of Revenues
Statement of Cash Flows
Budgetary Comparison Schedule
Statement of Net Position
The Statement of Net Position reports a government's assets, liabilities, and net position at a point in time. It provides a snapshot of financial position under GASB standards. Other statements focus on flows of resources or budgetary compliance.
Which internal control principle divides responsibilities among different employees?
Risk assessment
Segregation of duties
Control environment
Compliance monitoring
Segregation of duties ensures that no single individual has control over all aspects of a financial transaction. It reduces the risk of errors or fraud. This principle is fundamental in safeguarding public funds.
A department has a budget of $200,000 and actual expenditures of $185,000. What is the variance and its nature?
$215,000 unfavorable
$185,000 favorable
$15,000 favorable
$15,000 unfavorable
Variance equals actual minus budget, so $185,000 - $200,000 = -$15,000. A negative variance indicates expenditures were below budgeted levels, which is favorable. Managers view favorable variances as cost savings.
Which fund is used to account for grant revenues restricted to specific purposes?
Debt service fund
Special revenue fund
Permanent fund
General fund
Special revenue funds account for proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Grants restricted by donors or legislation fit this category. This separation enhances accountability.
Government-wide financial statements are prepared on which basis of accounting?
Modified accrual basis
Full accrual basis
Fund basis
Cash basis
Government-wide statements use full accrual accounting under GASB standards. They recognize economic resources and obligations when they occur, not when cash changes hands. This approach aligns with proprietary fund reporting.
When are property tax revenues recognized under modified accrual accounting?
When measurable and available
When levied regardless of availability
When the cash is received
When budget is adopted
Under modified accrual, revenues are recognized when they are measurable and available to finance expenditures of the current period. Property taxes must be collectible soon after year-end. This ensures proper matching of resources to obligations.
Which of the following is an example of a reconciliation control?
Approval signatures on invoices
Locks on office doors
Annual compliance training
Independent bank reconciliations
Independent bank reconciliations compare the organization's recorded cash balance to the bank statement, identifying discrepancies. This control helps detect errors or unauthorized transactions. It is a key control activity in safeguarding cash.
A city-owned golf course that operates like a business enterprise should be reported in which fund?
General fund
Enterprise fund
Trust fund
Special revenue fund
Enterprise funds account for government activities that operate like private businesses and charge fees to users. A city-owned golf course generates user charges to cover its costs, fitting the enterprise fund definition. This fund uses accrual accounting.
Which account is debited when a government formally adopts its annual operating budget?
Fund Balance
Encumbrances
Estimated Revenues
Appropriations
When a budget is adopted, the Estimated Revenues account is debited and Appropriations is credited because anticipated revenues increase. The entry records the budgeted amounts. This establishes spending authority and revenue expectations.
Which statement reports operating income for an enterprise fund under full accrual accounting?
Statement of Revenues, Expenses, and Changes in Fund Net Position
Statement of Cash Flows
Statement of Activities
Statement of Net Position
The Statement of Revenues, Expenses, and Changes in Fund Net Position reports revenues and expenses to determine operating income for enterprise funds. It follows full accrual accounting. Other statements focus on position or resource flows.
Under the GASB 'modified approach' for infrastructure, what documentation is required?
Celebrated asset valuations
Condition assessments
Encumbrance records
Depreciation schedules
The modified approach allows governments to forgo depreciation if they document that infrastructure assets are being maintained at or above an established condition level. Condition assessments must be performed regularly. This demonstrates that assets are preserved.
Which financial ratio evaluates short-term liquidity in government funds?
Return on net assets
Operating margin
Current ratio
Debt to asset ratio
The current ratio, calculated as current assets divided by current liabilities, measures a government's ability to pay short-term obligations. It indicates liquidity and financial flexibility. High ratios suggest strong capacity to meet current liabilities.
What type of budgetary report adjusts for changes in activity levels and cost drivers?
Static budget
Zero-based budget
Performance budget
Flexible budget
A flexible budget adjusts projected revenues and expenditures based on actual levels of activity or cost drivers. It provides variances that are more meaningful for performance evaluation. Static budgets remain fixed regardless of activity.
For a long-term government construction contract, which revenue recognition method recognizes revenue based on costs incurred relative to total estimated costs?
Cash basis method
Modified accrual method
Completed-contract method
Percentage-of-completion method
The percentage-of-completion method recognizes revenue and expenses proportional to construction progress, measured by costs incurred relative to total estimated costs. It matches revenues with costs over the contract life. This aligns with accrual principles.
When recognizing leases under GASB Statement No. 87, what amount is initially recorded as the lease liability?
Present value of lease payments
Fair value of the underlying asset
Sum of undiscounted lease payments
Cost of the underlying asset
GASB 87 requires recognition of a lease liability equal to the present value of future lease payments. Discounting ensures liabilities reflect the time value of money. The lease asset is recorded at the same amount adjusted for prepaid or accrued payments.
A missing bank reconciliation control leads to unauthorized disbursements. This deficiency is classified as which type under COSO?
Risk assessment deficiency
Control activity deficiency
Control environment deficiency
Information and communication deficiency
A missing bank reconciliation is a failure in control activities, which are the policies and procedures that help ensure management directives are carried out. Control activity deficiencies occur when key procedures are absent or not performed. This weakens the overall control environment.
Under GASB 87, how are lease payments recognized in governmental fund financial statements?
Recorded as deferred inflows
Lease asset and liability are recognized
Recorded as other financing sources
Expenditures are recorded when payments are made, with no liability recognized
Governmental funds use modified accrual accounting, so they do not recognize long-term assets or liabilities for leases. Lease payments are recorded as expenditures when legally due. Recognition at the government-wide level differs under full accrual.
0
{"name":"Which term describes the difference when actual expenditures exceed budgeted expenditures?", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Which term describes the difference when actual expenditures exceed budgeted expenditures?, In fund accounting, which fund type is used to account for general government operations?, Under GAAP for governments, which basis is used in fund statements for governmental funds?","img":"https://www.quiz-maker.com/3012/images/ogquiz.png"}

Learning Outcomes

  1. Analyze budgetary reports to identify variances in public entities
  2. Evaluate fund accounting principles used in government finance
  3. Apply GAAP and GASB standards in public administration scenarios
  4. Identify key revenue recognition practices in municipal accounting
  5. Demonstrate effective internal controls for safeguarding public funds

Cheat Sheet

  1. Understanding Budget Variances - Put on your detective hat and compare budgeted figures against actual spending to uncover any surprises lurking in the numbers. This practice pinpoints areas where finances stray off course, so you can make swift corrections and keep the budget ship steady. For example, if the parks department has spent beyond its limit, you'll catch that negative surprise early! gfoa.org
  2. Fund Accounting Basics - Think of each fund as its own treasure chest, safely holding money for a specific purpose and keeping it off-limits for other uses. By compartmentalizing resources, you ensure total transparency and accountability, preventing funds from being mixed up or misused. For instance, a capital projects fund exclusively finances infrastructure developments like roads and bridges, keeping those dollars on track! accountinginsights.org
  3. GAAP and GASB Standards - Follow the golden rules of public-sector reporting with GAAP's core principles and GASB's specialized guidance to maintain consistency and reliability in financial statements. These standards act like a universal recipe, ensuring everyone bakes financial reports the same way, no matter what kitchen they're in. GASB Statement No. 34, for example, lays out the structure for comprehensive government financial reports, making them easier to read and compare! onlinelibrary.wiley.com
  4. Revenue Recognition Practices - Discover when to officially record government revenue, typically when it's both measurable and available under the modified accrual basis. This approach ensures that you match revenues with the period they're meant to support, keeping your financial story coherent. For instance, property taxes get recognized in the fiscal year they're levied and collectible, making the timing just right! accountinginsights.org
  5. Internal Controls for Public Funds - Build a fortress around public money with controls like segregation of duties, regular audits, and transparent reporting to ward off fraud. These safety nets guarantee that no single person can both approve and spend funds, boosting public confidence in your processes. One fun example is requiring dual authorization for large purchases, so every big decision gets a second pair of eyes! sao.wa.gov
  6. Types of Governmental Funds - Get to know the lineup of funds - general, special revenue, capital projects, debt service, and permanent - as if they're players on a dream team. Each fund has its unique role, keeping public dollars organized and legally compliant. For example, special revenue funds capture income restricted for a specific purpose, like tourism taxes dedicated to boosting local attractions! accountinginsights.org
  7. Modified Accrual Accounting - Embrace the hybrid world where revenues get recorded when measurable and available, and expenses when liabilities pop up. This blend offers a clear snapshot of current financial resources without the full accrual complexity. Grant revenues, for example, land on your books once eligibility requirements are met and funds are actually in the bank! accountinginsights.org
  8. Budgetary Compliance - Stay on the straight and narrow by continuously matching spending and income against the approved budget to maintain fiscal discipline. Regular check-ins spot deviations early, making it easy to adjust plans before small gaps turn into big holes. For instance, monthly budget-to-actual comparisons help financial managers tweak resources and keep everything balanced! gfoa.org
  9. Financial Reporting Requirements - Become a reporting pro by mastering all parts of the CAFR: MD&A, government-wide statements, fund statements, and notes. Together, these pieces assemble a complete picture of a government's financial health, narrated both in words and numbers. Management's Discussion and Analysis (MD&A) adds a human touch by explaining the story behind the figures in a clear, conversational way! accountinginsights.org
  10. Interfund Transactions - Navigate the web of loans, transfers, and reimbursements between funds to keep each fund's ledger accurate and transparent. Properly recording these exchanges ensures that resources move smoothly without muddying the financial waters. For example, logging an interfund transfer from the general fund to the capital projects fund shows exactly how dollars shift to build new parks! accountinginsights.org
Make a Quiz (FREE) Copy & Edit This Quiz Create a Quiz with AI

Government Quizzes

Powered by: Quiz Maker