EXCEL MINI MOCK-2.6 PSA
ICAG PROFESSIONAL EXAMSMINI MOCK EXAMS- MARCH 2017
COURSE / 2.5 PUBLIC SECTOR ACCOUNTING AND FINANCETIME / 3 HOURS
Instructions: Attempt all questions. Show all workings in the answer booklet provided.
Cheating in the exams is unethical, and will be least tolerated
Question One
Stated below are the balances extracted from the books of Ministry of Aviation for the year ended 31st December 2015
Taxes / GHC
1,285.00
Wages / 500.00
Fees, fines, licenses, penalties / 52.00
Grants and other transfer payments / 60.00
Finance costs / 26.00
Supplies and consumables / 85.00
Transfers from other government entities / 125.00
Revenue from exchange transactions / 30.00
Depreciation and amortization expense / 33.00
Other revenue / 75.00
Impairment of property, plant and equipment / 23.00
Other expenses / 35.00
Cash and cash equivalents / 126.50
Receivables / 40.00
Investments (short – term) / 23.00
Prepayments / 23.50
Inventories / 37.50
Intangible assets / 95.00
Land and buildings / 522.00
Payables (short-term) / 710.00
Other non-financial assets / 7,500.00
Investments (Long-term) / 85.00
Receivables (Medium-term) / 425.50
Short-term borrowings / 350.00
Provisions (Current) / 22.50
Superannuation / 52.00
Payables (Medium-term) / 120.00
Borrowings (Long-term) / 332.50
Provisions (Long-term) / 41.00
Employee Benefits (Medium-term) / 75.00
Other non-financial assets / 100.00
Current portion of borrowings / 22.50
Employee Benefits (Short-term) / 37.00
Capital contributed by other Government entities / 97.00
Reserves / 425.00
Required:
Use the International Public Sector Accounting Standards (IPSAS) to prepare statement of financial performance for the year ended 31st December, 2015, and statement of financial position for the year ended 31st December, 2015, including Net Assets / Equity
Total: 20 marks
Question TWO
a) i) Commitment accounting begins with the commitment process.
Required:
i). Identify THREE procedures involved in the commitment process. (3 marks)
ii). Heads of departments have administering authority for advances, recoveries and proper record keeping in addition to administering losses incurred in advances issued to staff of his department (FAR 121).
Required:
Explain TWO reasons why a head of government entity may decide to write-off advances owed by public officials 2 marks
b) i) Explain THREE main principles underlying the imposition of taxes in Ghana. (3 marks)
iii) Explain fourtypes of taxes chargeable in Ghana. (2marks)
c) i) In recent years the call for governments all over the world to adopt and apply International Public Sector Accounting Standard (IPSAS) in the preparation of financial information and reports in the public sector is growing louder than ever.
Required:
Explain Five benefits Ghana stands to gain by adopting IPSAS in the preparation of public sector financial statements. (5 marks)
ii) Public Sector Accounting seeks to achieve certain financial objectives. Briefly explain any five of these objectives. ( 5 marks)
Total: 20 marks
Question Three
a)Appreciation Act gives an authority for expenditure from the consolidated fund conforming to the ambit and structure of the vote. However, it may sometime appear to the President that the Appropriation Act in respect of any financial year will not come into operation by the beginning of that financial year.
i)Explain the term Ambit of Vote. (2 marks)
ii)State and explain two means by which the President may finance expenditure for the first quarter of the financial year in which Appropriation Act do not come into operation at the beginning of that financial year. (6 marks)
iii)The Consolidated fund is divided into four main classifications, namely, Above –the-line accounts, Below-the-line accounts, General Revenue Balance and Reserve. Give five reasons for this classification. (5 marks)
b)Government fiscal policy is the use of taxation and other budgetary measures to regulate the national economy.
Required:
i)State three (3) objectives of government fiscal policy. (3 marks)
ii) The power to tax, borrow and create money to meet the aspirations of the Ghanaian public and raise their standard of living is based on the sovereign authority of the state.
Required:
State four (4) factors which the government takes into consideration before borrowing money. (4 marks)
Total: 20 marks
Question 4
- According to regulation 46 of Financial Administration Regulation, 2004, payment shall be made out of consolidated fund in times of emergency.
Required:
Briefly outline the disbursement procedures (5 marks)
- i) In selection tenderers in public procurement, consideration should be given to the qualification of tenderer.
Required:
Explain 4 qualifications criteria (8 marks)
ii) List four (4) expenditure items that are lawfully chargeable to the Road Fund. (4 marks)
iii) Identify (3) sources of monies to the Road Fund.(3 marks)
Total: 20 marks
Question 5
- Section 150 of FAR requires every head of department to establish a budget committee.
Define the composition and responsibilities of a Budget Committee for a government agency or department. (8 marks)
- i) What is ‘virement’ under public sector expenditure? (3 marks)
ii) Under what conditions and within what constraints is virement permissible.
(5 marks)
- Give 4 reasons why budgeted figures and prior year figures are included in the Central Government financial statements. (4 marks)
Total: 20marks
*END OF PAPER*
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