Based on the Public Sector Accounting study text you provided, here are various types of questions that

can be set on the document:

1. Multiple-Choice Questions (MCQs)

1. What is the primary objective of public sector accounting?

A) Maximizing profit
B) Ensuring transparency and accountability
C) Reducing government expenditures
D) Increasing tax revenues

2. Which of the following is NOT a user of public sector accounting information?

A) Government agencies
B) Shareholders
C) Financial institutions
D) Legislators

3. The cash basis of accounting recognizes transactions when:

A) They are approved by government agencies
B) They occur, regardless of cash movement
C) Cash is received or paid
D) Goods are delivered

4. Which of the following is NOT a function of the Auditor General?

A) Examining government accounts
B) Approving government contracts
C) Reporting financial mismanagement
D) Ensuring compliance with financial regulations

5. The Fiscal Responsibility Act, 2007 was enacted to:

A) Reduce corruption in the private sector
B) Enhance financial management in public administration
C) Promote investment in the oil sector
D) Establish local government funding schemes

2. Fill-in-the-Blanks

1. _________ is the regulatory body responsible for monitoring public procurement in Nigeria.

2. The Consolidated Revenue Fund (CRF) is established under section _________ of the 1999
Nigerian Constitution.

3. _________ is the accounting basis that records anticipated expenditure before cash is disbursed.

4. The _________ framework standardizes financial reporting among different government entities.

5. The 1992 Constitution of Ghana provides legal guidelines for _________ in public financial
management.
3. Short Answer Questions

1. Explain the differences between cash basis and accrual basis in public sector accounting.

2. What are the main sources of revenue for the Nigerian government?

3. Define commitment basis in public sector accounting and state two advantages of its use.

4. Describe the role of the Public Accounts Committee in financial oversight.

5. List and explain three laws governing public sector accounting in Nigeria.

4. Essay Questions

1. Discuss the importance of Public Sector Accounting in national development.

2. Analyze the role of IPSAS (International Public Sector Accounting Standards) in financial
reporting.

3. Evaluate the impact of the Public Procurement Act, 2007 on financial transparency in
government agencies.

4. Examine the role of the Auditor General in ensuring financial accountability in public
institutions.

5. Compare and contrast financial reporting standards for public sector accounting in Nigeria and
Ghana.

5. Case Study-Based Questions

Scenario: The government of Country X recently introduced a new financial management system based
on the accrual basis of accounting. However, public officials are finding it difficult to transition from the
traditional cash basis.

1. What are the main differences between cash basis and accrual basis?

2. Identify three challenges the government might face in implementing this transition.

3. Suggest three strategies to facilitate a smooth transition.

4. Discuss how the IPSAS framework can assist in the implementation.

Would you like me to refine or add more specific question types? 😊

You said:

answer all the questions

ChatGPT said:

Here are the answers to all the questions:

1. Multiple-Choice Questions (MCQs)

1. What is the primary objective of public sector accounting?

B) Ensuring transparency and accountability ✅

2. Which of the following is NOT a user of public sector accounting information?

B) Shareholders ✅ (Public sector accounting does not deal with shareholders, unlike private
sector accounting.)

3. The cash basis of accounting recognizes transactions when:

C) Cash is received or paid ✅ (Cash basis accounting records transactions only when cash
moves.)

4. Which of the following is NOT a function of the Auditor General?

B) Approving government contracts ✅ (The Auditor General audits financial transactions but
does not approve contracts.)

5. The Fiscal Responsibility Act, 2007 was enacted to:

B) Enhance financial management in public administration ✅ (It ensures proper management of
public funds.)

2. Fill-in-the-Blanks

1. Bureau of Public Procurement (BPP) is the regulatory body responsible for monitoring public
procurement in Nigeria.

2. The Consolidated Revenue Fund (CRF) is established under section 80 of the 1999 Nigerian
Constitution.

3. Commitment basis is the accounting basis that records anticipated expenditure before cash is
disbursed.

4. The National Chart of Accounts (NCOA) framework standardizes financial reporting among
different government entities.

5. The 1992 Constitution of Ghana provides legal guidelines for public financial management.

3. Short Answer Questions

1. Differences between cash basis and accrual basis:

o Cash basis records revenue and expenses only when cash is received or paid.
 o Accrual basis records revenue when it is earned and expenses when they are incurred,
regardless of cash movement.

2. Main sources of revenue for the Nigerian government:

o Taxes (e.g., VAT, income tax, corporate tax)

o Oil and gas revenue

o Custom duties and tariffs

o Grants and aid

o Government borrowings (bonds, loans, etc.)

3. Commitment basis accounting:

o Definition: Recognizes anticipated expenditure once a contract or purchase order is

issued, even if payment has not yet been made.

o Advantages:

 Provides a clear picture of obligations.

 Helps in budget control and planning.

4. Role of the Public Accounts Committee:

o Reviews government spending and ensures funds are used efficiently.

o Investigates financial mismanagement in government agencies.

o Examines reports from the Auditor General and recommends actions.

5. Laws governing public sector accounting in Nigeria:

o Fiscal Responsibility Act, 2007 (Ensures prudent use of public funds).

o Public Procurement Act, 2007 (Regulates government procurement).

o Finance (Control and Management) Act of 1958 (Governs the management of public
funds).

4. Essay Questions

1. Importance of Public Sector Accounting in national development:

o Ensures accountability and transparency.

o Prevents financial mismanagement and corruption.

o Helps in budgeting and financial planning.

o Provides accurate reports for decision-making.

 2. Role of IPSAS (International Public Sector Accounting Standards):

o Standardizes financial reporting for government entities.

o Improves transparency and comparability across countries.

o Enhances public sector financial management.

o Ensures compliance with international best practices.

3. Impact of the Public Procurement Act, 2007 on financial transparency:

o Reduces corruption by promoting competitive bidding.

o Ensures government contracts follow due process.

o Enhances efficiency in public sector procurement.

4. Role of the Auditor General in financial accountability:

o Audits government spending and reports irregularities.

o Ensures compliance with financial regulations.

o Identifies financial mismanagement and recommends corrective actions.

5. Comparison of financial reporting standards in Nigeria and Ghana:

o Both countries follow IPSAS standards for public sector accounting.

o Nigeria has additional laws like the Fiscal Responsibility Act and Public Procurement
Act.

o Ghana follows its Financial Administration Act, 2003 for public finance management.

5. Case Study-Based Questions

Scenario: Government of Country X transitioning to accrual basis accounting.

1. Differences between cash basis and accrual basis:

o Cash basis: Recognizes transactions only when cash is received or paid.

o Accrual basis: Recognizes revenue when earned and expenses when incurred.

2. Challenges in transitioning to accrual accounting:

o Lack of trained personnel.

o Difficulty in tracking assets and liabilities.

o Resistance to change from government employees.

o Need for updated accounting software.

 3. Strategies for a smooth transition:

o Training and capacity building for government accountants.

o Phased implementation to allow gradual adaptation.

o Investing in accounting software to support accrual reporting.

o Public awareness campaigns to educate stakeholders.

4. How IPSAS can assist in implementation:

o Provides standardized financial reporting guidelines.

o Offers best practices from other governments.

o Ensures transparency and accountability in financial statements.

All questions are now fully answered! 😊 Let me know if you need further clarification or additional
questions. 🚀

You said:

i want more questions and answers

ChatGPT said:

Here are more Public Sector Accounting questions and answers categorized for better understanding:

1. Multiple-Choice Questions (MCQs)

1. Which of the following is a major characteristic of public sector accounting?

A) Focus on profit maximization
B) Use of International Financial Reporting Standards (IFRS)
C) Compliance with legislative frameworks
D) Recognition of revenue before it is received

Answer: C) Compliance with legislative frameworks ✅

2. What is the main difference between public sector accounting and private sector accounting?
A) Public sector accounting is profit-driven, while private sector accounting is not
B) Public sector accounting focuses on service delivery, while private sector accounting focuses
on profit
C) Private sector accounting follows IPSAS, while public sector accounting follows IFRS
D) Public sector accounting has no legal framework

Answer: B) Public sector accounting focuses on service delivery, while private sector accounting
focuses on profit ✅
 3. Which of the following is an example of government revenue?
A) Shareholders’ dividends
B) Tax collection
C) Private business income
D) Employee salaries

Answer: B) Tax collection ✅

4. The Public Procurement Act, 2007 was enacted to regulate:

A) Private business investments
B) Government spending and contracting processes
C) Tax collection for businesses
D) Foreign exchange rates

Answer: B) Government spending and contracting processes ✅

5. The role of the Accountant General of the Federation includes:

A) Conducting audits of government accounts
B) Implementing tax collection policies
C) Maintaining government financial records and reporting
D) Managing private sector companies

Answer: C) Maintaining government financial records and reporting ✅

2. Fill-in-the-Blanks

1. The _________ is responsible for auditing public sector accounts.

Answer: Auditor General

2. Public sector accounting follows the _________ framework for international financial reporting.
Answer: IPSAS (International Public Sector Accounting Standards)

3. Government financial transactions are controlled through the _________ system to ensure
transparency and accountability.
Answer: Budgetary control

4. The _________ regulates government spending on procurement and contracts in Nigeria.

Answer: Bureau of Public Procurement (BPP)

5. The financial document that outlines government income and expenditure for a fiscal year is
called _________.
Answer: Budget

3. Short Answer Questions

1. Explain the role of IPSAS in public sector accounting.

Answer: IPSAS (International Public Sector Accounting Standards) provides global accounting
 guidelines for public sector entities. It ensures transparency, accountability, and consistency in
financial reporting among government agencies.

2. List three major sources of government revenue.

Answer:

o Taxation (income tax, VAT, corporate tax)

o Oil and gas revenue

o Grants and aid from international organizations

3. What is the importance of financial control in public sector accounting?

Answer: Financial control ensures that government funds are spent according to budgetary
provisions, prevents mismanagement, and promotes transparency and accountability.

4. Differentiate between capital expenditure and recurrent expenditure in the public sector.
Answer:

o Capital expenditure: Spending on long-term assets like infrastructure and equipment.

o Recurrent expenditure: Regular expenses such as salaries, utilities, and office

maintenance.

5. What is the role of the Public Accounts Committee (PAC)?

Answer: The PAC reviews government financial reports, ensures accountability in public
spending, and investigates financial mismanagement in government agencies.

4. Essay Questions

1. Discuss the significance of budgetary control in public sector accounting.

Answer: Budgetary control ensures that public funds are used effectively and within approved
limits. It helps prevent overspending, enhances financial discipline, and ensures that government
projects align with national priorities.

2. Analyze the challenges of implementing IPSAS in developing countries.

Answer: Challenges include lack of trained personnel, resistance to change, inadequate
infrastructure, and limited funding for financial reforms.

3. Examine the role of the Auditor General in public financial management.

Answer: The Auditor General audits government financial statements, ensures compliance with
financial laws, reports financial irregularities, and recommends corrective actions.

4. Compare and contrast fund accounting with accrual accounting in the public sector.
Answer:

o Fund accounting: Focuses on managing and tracking government funds separately for
accountability.
 o Accrual accounting: Recognizes revenue when earned and expenses when incurred,
providing a more comprehensive financial picture.

5. Explain the impact of corruption on public sector accounting.

Answer: Corruption leads to financial mismanagement, loss of public trust, budget deficits, and
reduced economic growth due to misuse of government funds.

5. Scenario-Based Questions

Scenario: The Nigerian government introduced the Treasury Single Account (TSA) system to consolidate
all government revenues into a single account at the central bank.

1. What is the main purpose of the TSA?

Answer: The TSA enhances transparency, prevents leakages in government revenue, and
improves financial accountability.

2. List two advantages and two challenges of implementing the TSA.

Answer:

o Advantages:

 Reduces financial leakages and misappropriation.

 Improves real-time monitoring of government funds.

o Challenges:

 Resistance from government agencies used to independent accounts.

 Initial difficulties in system integration.

3. How does the TSA help in reducing financial fraud?

Answer: The TSA eliminates multiple government accounts, making it harder for fraudulent
transactions to go undetected.

4. What other financial reforms can enhance transparency in the public sector?
Answer:

o Adoption of IPSAS

o Strengthening the role of the Auditor General

o Improved procurement regulations

5. How does the TSA align with IPSAS financial reporting?

Answer: The TSA ensures that government financial reporting follows IPSAS guidelines by
providing accurate revenue and expenditure records.
These additional questions and answers cover multiple aspects of Public Sector Accounting. Let me
know if you need more or specific types of questions! 😊📚

You said:

more

ChatGPT said:

Here are even more Public Sector Accounting questions and answers, covering additional areas and
ensuring a comprehensive set of study materials.

1. More Multiple-Choice Questions (MCQs)

1. Which accounting standard is specifically designed for public sector entities?

A) GAAP
B) IFRS
C) IPSAS
D) IAS

Answer: C) IPSAS ✅

2. Which of the following is an advantage of the accrual basis of accounting in the public sector?
A) It recognizes revenue only when cash is received
B) It hides government liabilities
C) It provides a more accurate financial position of government entities
D) It eliminates financial reporting requirements

Answer: C) It provides a more accurate financial position of government entities ✅

3. What is the primary role of the Fiscal Responsibility Commission in Nigeria?

A) Collecting taxes
B) Ensuring prudent financial management in government spending
C) Managing foreign exchange reserves
D) Monitoring stock market activities

Answer: B) Ensuring prudent financial management in government spending ✅

4. Which of the following is NOT a source of public sector revenue?

A) Grants from international organizations
B) Corporate loans from private banks
C) Taxes and levies
D) Revenue from government-owned businesses

Answer: B) Corporate loans from private banks ✅

5. What is the main objective of the Public Procurement Act, 2007?

A) To regulate government borrowing
B) To ensure transparency in government contracts
 C) To collect government revenue
D) To monitor stock market transactions

Answer: B) To ensure transparency in government contracts ✅

2. More Fill-in-the-Blanks Questions

1. The _________ is responsible for maintaining government accounts in Nigeria.

Answer: Accountant General of the Federation

2. The _________ is the legal framework that ensures transparency and accountability in public
financial management in Nigeria.
Answer: Fiscal Responsibility Act, 2007

3. The _________ is an accounting system that segregates financial resources into different funds
to track their specific usage.
Answer: Fund Accounting

4. The _________ is a financial document that outlines the estimated government revenue and
expenditure for a specific period.
Answer: Budget

5. _________ accounting recognizes revenue and expenses when they are incurred, regardless of
cash movement.
Answer: Accrual Basis Accounting

3. More Short Answer Questions

1. What is fund accounting, and why is it important in public sector accounting?

Answer:

o Fund accounting is a system used to track and report public financial resources
separately.

o It ensures accountability by ensuring that funds are used for their intended purposes.

2. Explain the difference between the Treasury Single Account (TSA) and multiple government
accounts.
Answer:

o TSA consolidates all government revenues into a single account, improving financial
transparency.

o Multiple government accounts increase financial mismanagement and inefficiencies.

3. Mention three challenges of implementing IPSAS in developing countries.

Answer:
 o Lack of trained personnel

o Resistance to change from government officials

o High cost of implementation and technology upgrades

4. What is the role of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC)?
Answer:

o RMAFC is responsible for allocating government revenue among the federal, state, and
local governments in Nigeria.

5. List three financial control measures used in the public sector.

Answer:

o Budgetary control

o Internal and external audits

o Legislative oversight

4. More Essay Questions

1. Discuss the significance of financial control in public sector accounting.

Answer:

o Financial control ensures proper use of public funds, prevents corruption, and enhances
government efficiency.

o It includes internal controls, audits, and legal frameworks like the Fiscal Responsibility
Act.

2. Evaluate the impact of public sector accounting reforms on transparency and accountability.
Answer:

o Public sector reforms, such as IPSAS adoption and the Treasury Single Account, have
improved financial transparency.

o They reduce corruption by providing clear records of revenue and expenditure.

3. Analyze the role of the National Assembly in public sector financial management.
Answer:

o The National Assembly approves budgets, reviews financial reports, and oversees
government expenditure through committees.

4. Explain the concept of performance auditing in the public sector and its significance.
Answer:

o Performance auditing assesses whether government programs are achieving their

intended goals efficiently.
 o It helps improve service delivery and financial management.

5. Compare and contrast the roles of the Accountant General and the Auditor General in the
public sector.
Answer:

o Accountant General: Responsible for maintaining financial records and preparing

government accounts.

o Auditor General: Reviews and audits government financial statements to ensure

compliance with regulations.

5. More Scenario-Based Questions

Scenario: The government of Country X is considering implementing the accrual basis of accounting in
its public sector financial reporting.

1. What are two benefits of adopting accrual basis accounting?

Answer:

o Provides a more accurate financial picture of government operations.

o Ensures proper matching of revenues and expenses.

2. What challenges might the government face in transitioning from cash basis to accrual basis
accounting?
Answer:

o Need for training and capacity-building among government accountants.

o Difficulty in valuing and tracking government assets.

3. Suggest three steps that can facilitate a smooth transition to accrual accounting.
Answer:

o Conducting workshops and training programs for accountants.

o Phased implementation to allow gradual adaptation.

o Developing proper accounting policies and systems.

4. How can IPSAS help in this transition?

Answer:

o IPSAS provides a standardized framework and guidelines for public sector financial
reporting.

o It ensures comparability and consistency in financial statements.

5. What role should the legislature play in this transition?

Answer:
 o Passing laws that mandate the adoption of accrual accounting.

o Providing oversight to ensure proper implementation.

These additional questions and answers provide an even deeper understanding of Public Sector
Accounting! 📚🔥

Would you like more case studies, numerical questions, or practical applications? Let me know! 😊

You said:

more

ChatGPT said:

Here are even more questions and answers on Public Sector Accounting, covering additional areas like
numerical problems, case studies, and advanced theoretical concepts.

1. More Multiple-Choice Questions (MCQs)

1. Which of the following is NOT a financial reporting standard applicable in the public sector?
A) IPSAS
B) IFRS
C) GAAP
D) CIMA

Answer: D) CIMA ✅

2. What is the main purpose of the Treasury Single Account (TSA)?

A) To increase government borrowing
B) To consolidate all government revenues into a single account
C) To allow ministries to operate independent accounts
D) To manage financial transactions of private businesses

Answer: B) To consolidate all government revenues into a single account ✅

3. What is the major difference between budgetary accounting and financial accounting in the
public sector?
A) Budgetary accounting focuses on profitability, while financial accounting focuses on expenses
B) Budgetary accounting is forward-looking, while financial accounting is historical
C) Budgetary accounting follows IFRS, while financial accounting follows IPSAS
D) There is no difference between them

Answer: B) Budgetary accounting is forward-looking, while financial accounting is historical ✅

4. The Financial Regulations in Nigeria are issued by which government body?

A) Ministry of Finance
B) Central Bank of Nigeria
 C) Federal Inland Revenue Service
D) Auditor General’s Office

Answer: A) Ministry of Finance ✅

5. Which of the following is NOT considered an internal control measure in the public sector?
A) Periodic financial audits
B) Segregation of duties
C) Lack of financial reporting
D) Budgetary controls

Answer: C) Lack of financial reporting ✅

2. More Fill-in-the-Blanks Questions

1. The _________ ensures the preparation of government financial statements and financial
reports.
Answer: Accountant General

2. The _________ is responsible for auditing government accounts to ensure compliance with
financial regulations.
Answer: Auditor General

3. The _________ is an international standard-setting body that develops IPSAS for public sector
accounting.
Answer: International Public Sector Accounting Standards Board (IPSASB)

4. _________ is the system of accounting that records anticipated expenditures before cash
disbursement occurs.
Answer: Commitment Basis Accounting

5. The _________ is the government agency responsible for revenue allocation in Nigeria.
Answer: Revenue Mobilization Allocation and Fiscal Commission (RMAFC)

3. More Short Answer Questions

1. What are the different bases of public sector accounting?

Answer:

o Cash basis: Recognizes transactions only when cash is received or paid.

o Accrual basis: Recognizes revenue when earned and expenses when incurred.

o Commitment basis: Records transactions when a contract is signed.

o Modified cash basis: Keeps books open for a short period after year-end.

o Modified accrual basis: Uses cash basis for revenues and accrual basis for expenses.
 2. List three advantages of using IPSAS in public sector accounting.
Answer:

o Improves transparency and accountability.

o Enhances comparability of financial statements.

o Standardizes financial reporting across public entities.

3. Explain the concept of "vote book" in public sector accounting.

Answer:

o A vote book is a financial control document used to monitor government spending.

o It records commitments and ensures that expenditures do not exceed the budget.

4. What is the difference between economic crime and financial mismanagement in public sector
accounting?
Answer:

o Economic crime: Includes fraud, money laundering, and corruption.

o Financial mismanagement: Involves wasteful spending and poor budgeting without

necessarily breaking the law.

5. List four functions of the Accountant General in Nigeria.

Answer:

o Prepares government financial statements.

o Maintains government accounts.

o Ensures proper implementation of financial policies.

o Oversees government treasury operations.

4. More Essay Questions

1. Discuss the impact of IPSAS adoption on public sector financial reporting in developing
countries.
Answer:

o Enhances transparency and accountability.

o Improves international comparability of financial statements.

o Increases trust in government financial reports.

o Requires investment in capacity-building and technology.

 2. Explain how public sector accounting can be used to prevent corruption in government
institutions.
Answer:

o Proper financial record-keeping prevents fraud.

o Regular audits detect financial irregularities.

o Budgetary controls prevent unauthorized spending.

3. Analyze the role of the Public Procurement Act in improving financial efficiency in Nigeria.
Answer:

o Ensures competitive bidding and fair contract allocation.

o Reduces waste and overspending in government procurement.

o Prevents corruption in public sector contracting.

4. Compare and contrast the financial responsibilities of the Minister of Finance and the
Accountant General.
Answer:

o Minister of Finance: Oversees overall economic and financial policies.

o Accountant General: Manages government accounts and financial reporting.

5. Examine the role of legislative oversight in ensuring accountability in public sector financial
management.
Answer:

o Reviews government spending through committees.

o Approves government budgets.

o Investigates cases of financial mismanagement.

5. More Scenario-Based Questions

Scenario 1: Implementation of TSA (Treasury Single Account)

The Nigerian government implemented the Treasury Single Account (TSA) policy to consolidate
government revenue and reduce financial leakages.

1. What are the major benefits of the TSA?

Answer:

o Eliminates multiple accounts and financial mismanagement.

o Improves transparency in government financial transactions.

 2. What challenges might ministries face in transitioning to the TSA?
Answer:

o Resistance from agencies used to operating multiple accounts.

o Difficulty in adapting to new financial reporting structures.

3. Suggest two strategies to ease the transition to the TSA system.

Answer:

o Providing training for government accountants.

o Implementing phased adoption of the TSA.

Scenario 2: Budgetary Control in Public Sector

A local government agency was allocated a budget of ₦5 billion for infrastructure development.
However, at the end of the fiscal year, the agency had overspent by ₦2 billion.

1. What are the possible reasons for the budget overrun?

Answer:

o Poor budget planning.

o Lack of financial controls.

o Inflation and increased costs.

2. Suggest three measures to improve budgetary control in public sector accounting.

Answer:

o Implementing strict monitoring of budget implementation.

o Regularly updating budget estimates based on economic changes.

o Using performance-based budgeting techniques.

Numerical Problem:

Problem:
A government agency receives a budget allocation of ₦10 million. At the end of the fiscal year, the
agency reports the following expenditures:

 Salaries: ₦3 million

 Equipment purchase: ₦2 million

 Infrastructure projects: ₦4 million

Calculate:
 1. Total expenditure.

2. Remaining budget balance.

Solution:

1. Total Expenditure:
₦3m + ₦2m + ₦4m = ₦9 million

2. Remaining Budget Balance:

₦10m - ₦9m = ₦1 million

These additional questions, case studies, and numerical problems provide an even deeper
understanding of Public Sector Accounting! 📚🔥

Would you like more numerical exercises, case studies, or advanced IPSAS concepts? Let me know! 😊

You said:

more and more

ChatGPT said:

Here are even more Public Sector Accounting questions and answers, covering advanced theoretical
concepts, case studies, numerical problems, and real-world applications.

1. More Advanced Multiple-Choice Questions (MCQs)

1. Which of the following best describes the Public Sector Accounting Standard (IPSAS)
framework?
A) A framework for preparing corporate financial statements
B) A set of standards governing private sector accounting
C) A guideline for financial reporting in government institutions
D) A manual for tax collection and distribution

Answer: C) A guideline for financial reporting in government institutions ✅

2. Which of the following is NOT a component of government financial statements?

A) Statement of Financial Position
B) Profit and Loss Account
C) Cash Flow Statement
D) Statement of Budget Performance

Answer: B) Profit and Loss Account ✅ (Public sector accounting does not focus on profit-making, unlike
private sector accounting.)

3. A key objective of the Fiscal Responsibility Act, 2007 is to:

A) Ensure efficient financial management in the public sector
 B) Promote profit-making in government agencies
C) Regulate the banking sector
D) Reduce taxation on government projects

Answer: A) Ensure efficient financial management in the public sector ✅

4. Which of the following documents is used to record government expenditure authorizations?

A) Treasury Single Account Statement
B) Appropriation Act
C) Statement of Financial Position
D) Balance Sheet

Answer: B) Appropriation Act ✅ (It legally allows government spending for a given fiscal year.)

5. The Accountant General is responsible for:

A) Auditing financial statements
B) Approving tax exemptions
C) Preparing and maintaining government accounts
D) Monitoring stock market activities

Answer: C) Preparing and maintaining government accounts ✅

2. More Advanced Fill-in-the-Blanks Questions

1. The _________ is the legal document that grants government agencies permission to spend
public funds.
Answer: Appropriation Act

2. The _________ is responsible for auditing and reviewing government financial statements.
Answer: Auditor General

3. _________ is a public sector financial management tool that ensures government revenues are
managed in a single account.
Answer: Treasury Single Account (TSA)

4. The _________ system allows governments to track and manage different types of funds
separately.
Answer: Fund Accounting

5. _________ refers to the financial control system where planned spending is compared with
actual spending to prevent overspending.
Answer: Budgetary Control

3. More Advanced Short Answer Questions

1. What is the significance of IPSAS 24 in public sector accounting?

Answer:
 o IPSAS 24 provides guidelines for presenting budget information in financial statements.

o It enhances transparency and accountability by aligning budget reporting with actual

financial performance.

2. Explain the role of the Public Accounts Committee (PAC) in public financial oversight.
Answer:

o The PAC reviews government financial reports to ensure accountability.

o It investigates cases of financial mismanagement.

o It works closely with the Auditor General to enforce compliance with financial
regulations.

3. List three differences between private sector and public sector accounting.
Answer:

o Objective: Public sector accounting focuses on service delivery, while private sector
accounting aims for profit.

o Financial Reporting Standard: Public sector accounting follows IPSAS, while private
sector accounting follows IFRS.

o Source of Funds: Public sector funds come from taxation and grants, while private sector
funds come from sales and investments.

4. What are the major components of a government financial statement?

Answer:

o Statement of Financial Position

o Statement of Cash Flows

o Budget Execution Report

o Statement of Revenue and Expenditure

5. Explain the role of budgetary control in preventing financial mismanagement.

Answer:

o Budgetary control ensures that expenditures do not exceed allocations.

o It helps prevent overspending and financial leakages.

o It provides a basis for evaluating government performance against set targets.

4. More Advanced Essay Questions

1. Discuss the impact of the Treasury Single Account (TSA) on financial transparency in Nigeria.
Answer:
 o TSA consolidates government funds, preventing financial leakages.

o It enhances financial monitoring and accountability.

o Reduces corruption by eliminating multiple bank accounts.

2. Explain the role of the Fiscal Responsibility Act, 2007 in public sector financial management.
Answer:

o Ensures prudent management of government resources.

o Sets limits on government borrowing and debt servicing.

o Enhances transparency and accountability in public spending.

3. Analyze the challenges of implementing IPSAS in the Nigerian public sector.

Answer:

o Lack of trained personnel.

o Resistance to change by government officials.

o High cost of implementation.

4. Evaluate the role of internal audits in strengthening public sector financial accountability.
Answer:

o Internal audits help detect fraud and financial mismanagement.

o They ensure compliance with financial regulations.

o Provide recommendations for improving financial efficiency.

5. Compare and contrast the responsibilities of the Auditor General and the Accountant General
in the public sector.
Answer:

o Auditor General: Reviews and audits government accounts.

o Accountant General: Maintains and prepares government financial records.

5. More Advanced Scenario-Based Questions

Scenario 1: Budget Deficit in Government Spending

The government of Country X projected an annual budget of ₦50 billion, but at the end of the year, it
recorded a total expenditure of ₦65 billion.

1. What is the budget deficit?

Answer: ₦65 billion - ₦50 billion = ₦15 billion deficit.
 2. Suggest two ways the government can finance this budget deficit.
Answer:

o Borrowing from international financial institutions.

o Cutting unnecessary expenditures.

3. What are two risks associated with persistent budget deficits?

Answer:

o Increased government debt.

o Higher inflation rates due to excessive borrowing.

Scenario 2: Public Procurement Fraud

A public sector agency was allocated ₦100 million for road construction, but an audit revealed that only
₦60 million was used, while the remaining ₦40 million was unaccounted for.

1. What type of financial malpractice does this represent?

Answer: Fraud and misappropriation of public funds.

2. Which agency is responsible for investigating such cases in Nigeria?

Answer: Economic and Financial Crimes Commission (EFCC).

3. Suggest two measures to prevent public sector fraud.

Answer:

o Strengthening procurement controls.

o Conducting regular audits.

Numerical Problem:

Problem:
A government hospital received a budget allocation of ₦20 million for operations. The following
expenses were recorded:

 Salaries: ₦6 million

 Medical Equipment: ₦8 million

 Maintenance: ₦3 million

Calculate:

1. Total expenditure.

2. Remaining budget balance.

Solution:

1. Total Expenditure: ₦6m + ₦8m + ₦3m = ₦17 million

2. Remaining Budget Balance: ₦20m - ₦17m = ₦3 million

3.