Topic: Government Accounting Concepts and Principles

Search 500 + past questions and counting.

  • Filter by Professional Bodies

  • Filter by Subject

  • Filter by Series

  • Filter by Topics

  • Filter by Levels

  • 20 Marks

PSAF – May 2024 – L2 – SB – Q4 – Government Accounting Concepts and Principles

Characteristics, structures, and steps for budgeting with National Chart of Accounts.

National Chart of Accounts (NCOA) shows the complete list of budget and accounting items for General Purpose Financial Reporting (GPFS) and budgeting.

a. State FOUR characteristics of the National Chart of Accounts. (4 Marks)

b. Discuss the SIX structures of the National Chart of Accounts for budgeting. (12 Marks)

c. Identify and briefly explain FOUR steps for budgeting with the National Chart of Accounts. (4 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – May 2024 – L2 – SB – Q4 – Government Accounting Concepts and Principles"

  • 15 Marks

PSAF – Nov 2021 – L2 – Q7 – Government Accounting Concepts and Principles

Calculate NPV for projects, profitability index, and discuss ranking differences.

Otunba Local Government wishes to boost its revenue generation and six possible capital investments have been identified. However, the Local Government only has access to a total of N6,200,000. The projects may not be postponed until a future period, and it is unlikely that similar investment opportunities will occur.

Expected net cash flows are:

Projects A and E are mutually exclusive while all the projects are believed to be of similar risk to the Local Government’s existing capital investments. Any surplus funds may be invested in the money market to earn a return of 9% per year. The money market may be assumed to be an efficient market. The Local Government’s cost of capital is 12% per year.

Required:

(a) Calculate the expected net present value for each project, and rank the projects. (8 Marks)
(b) Assuming the projects are divisible, calculate the Profitability Index for each project and rank the projects to determine how the money would be best invested. (6 Marks)
(c) State why the rankings in (b) differ from that in (a) above. (1 Mark)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2021 – L2 – Q7 – Government Accounting Concepts and Principles"

  • 10 Marks

PSAF – Nov 2021 – L2 – Q3a – Government Accounting Concepts and Principles

Discuss observations and features of a good public sector accounting system in developing countries.

The records of research work in the individual countries in the ‘third world’ are difficult to obtain, unlike in the advanced countries, where research work has been documented and published.

Required:

Discuss FIVE observations and FIVE features of a good system of public sector accounting in the developing countries as contained in the United Nations Manual on Government Accounting.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2021 – L2 – Q3a – Government Accounting Concepts and Principles"

  • 4 Marks

PSAF – Nov 2021 – L2 – Q1b – Government Accounting Concepts and Principles

Identify risks associated with reliance on MTEF and ways to mitigate them.

Identify FOUR risks associated with reliance on the Medium-Term Expenditure Framework (MTEF) and ways to mitigate these risks.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2021 – L2 – Q1b – Government Accounting Concepts and Principles"

  • 22 Marks

PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

Sampolopolo Local Government has identified a vacant land beside its marriage registry building. The director of administration proposed that the land be used either for a cybercafé where the general public can browse, make phone calls, photocopy and carry out other computer services or for the construction of an entertainment event-hall that can be rented out on a commercial basis.
This idea was tabled at the council’s management meeting and unanimously accepted. However, the Finance and General Purposes Committee recommended five years for the project since the council secretariat building will be extended in the future to accommodate more offices for the increased staff strength, and this was approved.

The cost of building the cybercafé and the event-hall with necessary facilities and fittings as well as the expected cash inflows/profits as prepared by the director of administration are as follows:

Required:
As the consultant engaged by Sampolopolo Local Government, advise the Local Government on the more viable project using:
i. Pay Back Period (PBP) (7 Marks)
ii. Accounting Rate of Return (ARR) (13 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles"

  • 20 Marks

PSAF – May 2024 – L2 – SB – Q4 – Government Accounting Concepts and Principles

Characteristics, structures, and steps for budgeting with National Chart of Accounts.

National Chart of Accounts (NCOA) shows the complete list of budget and accounting items for General Purpose Financial Reporting (GPFS) and budgeting.

a. State FOUR characteristics of the National Chart of Accounts. (4 Marks)

b. Discuss the SIX structures of the National Chart of Accounts for budgeting. (12 Marks)

c. Identify and briefly explain FOUR steps for budgeting with the National Chart of Accounts. (4 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – May 2024 – L2 – SB – Q4 – Government Accounting Concepts and Principles"

  • 15 Marks

PSAF – Nov 2021 – L2 – Q7 – Government Accounting Concepts and Principles

Calculate NPV for projects, profitability index, and discuss ranking differences.

Otunba Local Government wishes to boost its revenue generation and six possible capital investments have been identified. However, the Local Government only has access to a total of N6,200,000. The projects may not be postponed until a future period, and it is unlikely that similar investment opportunities will occur.

Expected net cash flows are:

Projects A and E are mutually exclusive while all the projects are believed to be of similar risk to the Local Government’s existing capital investments. Any surplus funds may be invested in the money market to earn a return of 9% per year. The money market may be assumed to be an efficient market. The Local Government’s cost of capital is 12% per year.

Required:

(a) Calculate the expected net present value for each project, and rank the projects. (8 Marks)
(b) Assuming the projects are divisible, calculate the Profitability Index for each project and rank the projects to determine how the money would be best invested. (6 Marks)
(c) State why the rankings in (b) differ from that in (a) above. (1 Mark)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2021 – L2 – Q7 – Government Accounting Concepts and Principles"

  • 10 Marks

PSAF – Nov 2021 – L2 – Q3a – Government Accounting Concepts and Principles

Discuss observations and features of a good public sector accounting system in developing countries.

The records of research work in the individual countries in the ‘third world’ are difficult to obtain, unlike in the advanced countries, where research work has been documented and published.

Required:

Discuss FIVE observations and FIVE features of a good system of public sector accounting in the developing countries as contained in the United Nations Manual on Government Accounting.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2021 – L2 – Q3a – Government Accounting Concepts and Principles"

  • 4 Marks

PSAF – Nov 2021 – L2 – Q1b – Government Accounting Concepts and Principles

Identify risks associated with reliance on MTEF and ways to mitigate them.

Identify FOUR risks associated with reliance on the Medium-Term Expenditure Framework (MTEF) and ways to mitigate these risks.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2021 – L2 – Q1b – Government Accounting Concepts and Principles"

  • 22 Marks

PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

Sampolopolo Local Government has identified a vacant land beside its marriage registry building. The director of administration proposed that the land be used either for a cybercafé where the general public can browse, make phone calls, photocopy and carry out other computer services or for the construction of an entertainment event-hall that can be rented out on a commercial basis.
This idea was tabled at the council’s management meeting and unanimously accepted. However, the Finance and General Purposes Committee recommended five years for the project since the council secretariat building will be extended in the future to accommodate more offices for the increased staff strength, and this was approved.

The cost of building the cybercafé and the event-hall with necessary facilities and fittings as well as the expected cash inflows/profits as prepared by the director of administration are as follows:

Required:
As the consultant engaged by Sampolopolo Local Government, advise the Local Government on the more viable project using:
i. Pay Back Period (PBP) (7 Marks)
ii. Accounting Rate of Return (ARR) (13 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles"

Elevate your professional expertise across key business domains with our comprehensive training programs

Our offerings

Contact Info

  • +233203701923
    +233543919232
  • info@nbcinstitute.com

Customer

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope

NBC Institute

Hello! How can I help you today?
Oops!

This feature is only available in selected plans.

Click here to view all plans

Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan