Question Tag: Cash Basis

Search 500 + past questions and counting.

PSAF – May 2021 – L2 – Q2b – International Public Sector Accounting Standards (IPSAS)

Explain differences between accrual and cash accounting, justify IPSAS adoption, and describe commitment accounting benefits.

Question

You have received an official memo from your Permanent Secretary, which reads:

Director of Account and Finance: Hope you are doing well. We have just closed from a workshop organised by the Ministry of Finance on public finance management not long ago, and the discussion was all about the adoption of IPSAS accrual accounting in the public sector. It was emphasised that migration from IPSAS Cash Basis to IPSAS Accrual Basis is necessary to improve financial reporting and transparency in the public sector. You know I have little knowledge in accounting, so I was completely lost in the discussions and I wished you had attended the workshop with me.

Another issue discussed was commitment accounting. We were made to understand that commitment accounting strengthens public finance management and therefore all Ministries, Departments and Agencies (MDAs) must ensure that every expenditure is committed in accordance with the appropriation prior to spending.

Please could you help me with some information on these issues?

Required:
Explain to the Permanent Secretary:
i. THREE differences between accrual accounting and cash accounting. (3 Marks)
ii. THREE justifications for adopting IPSAS accrual accounting in the public sector. (3 Marks)
iii. The term “commitment accounting” and illustrate THREE ways it could strengthen public financial management. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Basis, Cash Basis, Financial Transparency, IPSAS, Public Finance Management
Level: Level 2

Topic: International public sector accounting standards
Series: MAY 2021

PSAF – Nov 2016 – L2 – Q2a – International Public Sector Accounting Standards (IPSAS)

This question outlines the benefits of migrating from IPSAS-CASH to IPSAS-ACCRUAL basis for public sector accounting.

Question

In an effort to promote accountability and transparency in governance, the
administration has adopted and implemented the International Public Sector
Accounting Standards (IPSAS) from January 2014. The governments (Federal, State,
Local) and other public institutions adopted IPSAS in the reporting and presentation
of financial statements to improve the quality and comparability of financial
information, and to be in conformity with other advanced nations of the world. IPSASCASH is already adopted in the budgeting, accounting and presentation of financial
statements, while IPSAS-ACCRUAL takes effect from January 2016.
You are required to:

Identify any SIX benefits of migration from IPSAS-CASH basis to IPSAS ACCRUAL basis.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Cash Basis, Financial Reporting, IPSAS, Public Sector Reforms
Level: Level 2

Topic: International public sector accounting standards
Series: NOV 2016

FR – Nov 2021 – L2 – Q3a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Discuss the three bases of accounting on which transactions are recognized and measured.

Question

There are three bases of accounting on which transactions are recognized and measured.

Required:
Discuss these three bases of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Bases, Accruals, Break-up Basis, Cash Basis
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: NOV 2021

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

Question

i. Differences between Accounting Bases

Cash Basis: Recognizes revenue and expenses only when cash is received or paid. It does not match income with expenses incurred in the same period.
Accrual Basis: Recognizes revenue when earned and expenses when incurred, regardless of when cash transactions occur. It provides a more accurate picture of a company’s financial position.
Break-up Basis: Assumes that a business will not continue as a going concern, and assets are valued at their realizable amounts rather than their carrying amounts.

ii. Setback of Cash Basis

It does not provide a true picture of financial performance, as income and expenses may not be recorded in the period to which they relate.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

Question

Explain the differences between the accrual, cash, and break-up basis of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Methods, Accrual Basis, Break-up Basis, Cash Basis, Financial Reporting
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2018

FA – May 2018 – L1 – SA – Q8 – Bases of Accounting: Accrual vs. Cash

Identifies the requirement for revenue recognition under the cash basis of accounting.

Question

The cash basis of accounting requires the recognition of revenue only when they are:
A. Due
B. Earned
C. Paid
D. Received
E. Budgeted

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Cash Basis, Revenue Recognition
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: MAY 2018

FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts

This question involves explaining different bases of accounting and the operation of a petty cash book.

Question

a. Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
i. Explain cash, accrual, and break-up bases of accounting. (6 Marks)
ii. State FOUR limitations associated with the cash basis of accounting. (8 Marks)

b. Mallam Isa is considering setting up a petty cash book from which to pay small expenses, however, he is not sure of how a petty cash book operates.
Required:
Explain to Mallam Isa the operation of a petty cash book. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accruals, Cash Basis, Petty Cash
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2022 – L1 – SB – Q4b – Accounting Concepts

State four limitations of the cash basis of accounting.

Question

State FOUR limitations associated with cash basis of accounting.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Cash Basis, Financial Reporting, Limitations
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

Question

Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
Explain the following accounting bases:
i. Cash basis
ii. Accrual basis
iii. Break-up basis
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2023 – L1 – SA – Q10 – Bases of Accounting: Accrual and Cash

Identify the correct description of the cash basis of accounting.

Question

Which of the following statements correctly describes cash basis of accounting?

A. Revenue is recognised in the period when it is earned, regardless of when the cash is received
B. Expenses are recognised in the period when they are incurred, regardless of when they are paid
C. Revenue is recognised in the period when the cash is received, regardless of when it is earned
D. Expenses are recognised in the period when they are earned, regardless of when they are incurred
E. Both revenue and expenses are recognised in the period when they are occurred, regardless of cash transactions

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Cash Basis, Revenue Recognition
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2023

PSAF – May 2021 – L2 – Q2b – International Public Sector Accounting Standards (IPSAS)

Explain differences between accrual and cash accounting, justify IPSAS adoption, and describe commitment accounting benefits.

Question

You have received an official memo from your Permanent Secretary, which reads:

Director of Account and Finance: Hope you are doing well. We have just closed from a workshop organised by the Ministry of Finance on public finance management not long ago, and the discussion was all about the adoption of IPSAS accrual accounting in the public sector. It was emphasised that migration from IPSAS Cash Basis to IPSAS Accrual Basis is necessary to improve financial reporting and transparency in the public sector. You know I have little knowledge in accounting, so I was completely lost in the discussions and I wished you had attended the workshop with me.

Another issue discussed was commitment accounting. We were made to understand that commitment accounting strengthens public finance management and therefore all Ministries, Departments and Agencies (MDAs) must ensure that every expenditure is committed in accordance with the appropriation prior to spending.

Please could you help me with some information on these issues?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Basis, Cash Basis, Financial Transparency, IPSAS, Public Finance Management
Level: Level 2

Topic: International public sector accounting standards
Series: MAY 2021

PSAF – Nov 2016 – L2 – Q2a – International Public Sector Accounting Standards (IPSAS)

This question outlines the benefits of migrating from IPSAS-CASH to IPSAS-ACCRUAL basis for public sector accounting.

Question

Identify any SIX benefits of migration from IPSAS-CASH basis to IPSAS ACCRUAL basis.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Cash Basis, Financial Reporting, IPSAS, Public Sector Reforms
Level: Level 2

Topic: International public sector accounting standards
Series: NOV 2016

FR – Nov 2021 – L2 – Q3a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Discuss the three bases of accounting on which transactions are recognized and measured.

Question

There are three bases of accounting on which transactions are recognized and measured.

Required:
Discuss these three bases of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Bases, Accruals, Break-up Basis, Cash Basis
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: NOV 2021

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

Question

i. Differences between Accounting Bases

Cash Basis: Recognizes revenue and expenses only when cash is received or paid. It does not match income with expenses incurred in the same period.
Accrual Basis: Recognizes revenue when earned and expenses when incurred, regardless of when cash transactions occur. It provides a more accurate picture of a company’s financial position.
Break-up Basis: Assumes that a business will not continue as a going concern, and assets are valued at their realizable amounts rather than their carrying amounts.

ii. Setback of Cash Basis

It does not provide a true picture of financial performance, as income and expenses may not be recorded in the period to which they relate.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

Question

Explain the differences between the accrual, cash, and break-up basis of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Methods, Accrual Basis, Break-up Basis, Cash Basis, Financial Reporting
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2018

FA – May 2018 – L1 – SA – Q8 – Bases of Accounting: Accrual vs. Cash

Identifies the requirement for revenue recognition under the cash basis of accounting.

Question

The cash basis of accounting requires the recognition of revenue only when they are:
A. Due
B. Earned
C. Paid
D. Received
E. Budgeted

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Cash Basis, Revenue Recognition
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: MAY 2018

FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts

This question involves explaining different bases of accounting and the operation of a petty cash book.

Question

a. Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
i. Explain cash, accrual, and break-up bases of accounting. (6 Marks)
ii. State FOUR limitations associated with the cash basis of accounting. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accruals, Cash Basis, Petty Cash
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2022 – L1 – SB – Q4b – Accounting Concepts

State four limitations of the cash basis of accounting.

Question

State FOUR limitations associated with cash basis of accounting.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Cash Basis, Financial Reporting, Limitations
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

Question

Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
Explain the following accounting bases:
i. Cash basis
ii. Accrual basis
iii. Break-up basis
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2023 – L1 – SA – Q10 – Bases of Accounting: Accrual and Cash

Identify the correct description of the cash basis of accounting.

Question

Which of the following statements correctly describes cash basis of accounting?

A. Revenue is recognised in the period when it is earned, regardless of when the cash is received
B. Expenses are recognised in the period when they are incurred, regardless of when they are paid
C. Revenue is recognised in the period when the cash is received, regardless of when it is earned
D. Expenses are recognised in the period when they are earned, regardless of when they are incurred
E. Both revenue and expenses are recognised in the period when they are occurred, regardless of cash transactions

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Cash Basis, Revenue Recognition
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2023

Question Tag: Cash Basis

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

PSAF – May 2021 – L2 – Q2b – International Public Sector Accounting Standards (IPSAS)

Explain differences between accrual and cash accounting, justify IPSAS adoption, and describe commitment accounting benefits.

You're reporting an error for "PSAF – May 2021 – L2 – Q2b – International Public Sector Accounting Standards (IPSAS)"

PSAF – Nov 2016 – L2 – Q2a – International Public Sector Accounting Standards (IPSAS)

This question outlines the benefits of migrating from IPSAS-CASH to IPSAS-ACCRUAL basis for public sector accounting.

You're reporting an error for "PSAF – Nov 2016 – L2 – Q2a – International Public Sector Accounting Standards (IPSAS)"

FR – Nov 2021 – L2 – Q3a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Discuss the three bases of accounting on which transactions are recognized and measured.

You're reporting an error for "FR – Nov 2021 – L2 – Q3a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

i. Differences between Accounting Bases

ii. Setback of Cash Basis

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash"

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

You're reporting an error for "FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FA – May 2018 – L1 – SA – Q8 – Bases of Accounting: Accrual vs. Cash

Identifies the requirement for revenue recognition under the cash basis of accounting.

You're reporting an error for "FA – May 2018 – L1 – SA – Q8 – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts

This question involves explaining different bases of accounting and the operation of a petty cash book.

You're reporting an error for "FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts"

FA – Nov 2022 – L1 – SB – Q4b – Accounting Concepts

State four limitations of the cash basis of accounting.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4b – Accounting Concepts"

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts"

FA – Nov 2023 – L1 – SA – Q10 – Bases of Accounting: Accrual and Cash

Identify the correct description of the cash basis of accounting.

You're reporting an error for "FA – Nov 2023 – L1 – SA – Q10 – Bases of Accounting: Accrual and Cash"

PSAF – May 2021 – L2 – Q2b – International Public Sector Accounting Standards (IPSAS)

Explain differences between accrual and cash accounting, justify IPSAS adoption, and describe commitment accounting benefits.

You're reporting an error for "PSAF – May 2021 – L2 – Q2b – International Public Sector Accounting Standards (IPSAS)"

PSAF – Nov 2016 – L2 – Q2a – International Public Sector Accounting Standards (IPSAS)

This question outlines the benefits of migrating from IPSAS-CASH to IPSAS-ACCRUAL basis for public sector accounting.

You're reporting an error for "PSAF – Nov 2016 – L2 – Q2a – International Public Sector Accounting Standards (IPSAS)"

FR – Nov 2021 – L2 – Q3a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Discuss the three bases of accounting on which transactions are recognized and measured.

You're reporting an error for "FR – Nov 2021 – L2 – Q3a – Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

i. Differences between Accounting Bases

ii. Setback of Cash Basis

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash"

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

You're reporting an error for "FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FA – May 2018 – L1 – SA – Q8 – Bases of Accounting: Accrual vs. Cash

Identifies the requirement for revenue recognition under the cash basis of accounting.

You're reporting an error for "FA – May 2018 – L1 – SA – Q8 – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts

This question involves explaining different bases of accounting and the operation of a petty cash book.

You're reporting an error for "FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts"

FA – Nov 2022 – L1 – SB – Q4b – Accounting Concepts

State four limitations of the cash basis of accounting.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4b – Accounting Concepts"

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts"

FA – Nov 2023 – L1 – SA – Q10 – Bases of Accounting: Accrual and Cash

Identify the correct description of the cash basis of accounting.

You're reporting an error for "FA – Nov 2023 – L1 – SA – Q10 – Bases of Accounting: Accrual and Cash"

Our offerings

Contact Info

Customer

Get In Touch

NBC Institute

admin