ACC418 List of Questions
Q1 In accordance with Financial Regulations (FR) No 3205 â?? Revised to January 2009, which office is empowered to authorize parastatals to obtain loans or any other form of advance from Commercial Banks?
Office of the Auditor-General for the Federation.
Office of the Accountant General of the Federation.
Debt Management Office.
Bureau of Public Procurement.
Q2 The Federal Executive Council has power to award contracts in excess of
N20 million.
N40 million.
N50 million.
N100 million.
Q3 In accordance with Section 16 of Finance (Control and Management) Act LFN 2004 into which of the following accounts shall monies appropriated and not expended lapse and accrue to, at the expiration of the year, in respect of which such monies are appropriated?
Consolidated Revenue Fund.
Capital Development Fund.
Lapsed Capital Development Fund.
Contingency Fund.
Q4 Which of the following is NOT a method of preparing a public sector organizationâ??s annual budget?
Planning, programming and budgeting system.
Rolling plan method.
Line item method.
Incremental method.
Q5 Who among the following, is NOT a member of the Economic and Financial Crimes Commission?
Minister of Finance.
Chairman, National Drug Law Enforcement Agency (NDLEA).
Commissioner for Insurance.
Comptroller General, Nigerian Customs Service.
Q6 Which of the following is a source of government revenue?
Federation Account Revenue Heads
Federal Accounts Allocation Committee
Consolidated Revenue Fund
Value Added Tax
Q7 Pension is
gross salary, including allowances, paid to a retiring officer.
a monthly payment to an officer who is sick.
 a lump sum paid to an officer on forced retirement.
a monthly, quarterly or yearly payment to a retired officer who has served for a statutory period.
Q8 Which of the following is NOT an in-flow into a state governmentâ??s Consolidated Revenue Fund?
Statutory Allocation from Federation Account
Licences
Income tax of Armed Forces personnel
Court fees and medical fees
Q9 Which of these uses monetary and fiscal policies as a means of control over Government expenditure?
Ministry of Finance.
The Treasury.
The Executive.
Legislature.
Q10 The Auditor-General for the Federation is expected to state in his report, whether in his opinion,
      i and ii
          ii and iii
          i, ii and iii
     ii only
Q11 IPSASs are widely used by intergovernmental organizations. One of these is not a reason for its adoption:
The standards aim at improving the quality of general purpose financial reporting by public sector entities
It leads to better informed assessments of the resource allocation decisions made by governments,
It increases transparency and accountability
It has a high cost of implementation
Q12 Incremental budgeting can be refers to:
This is a management effort which provides for systematic consideration of all activities and programmes.
The technique requires every item of expenditure to be justified as if the particular activity or programme is taking off for the first time.
It is the preparation of operating budgets from a “high-base” of expenditure cost.
Under the technique, resources are not necessarily allocated in accordance with the previous patterns.
Q13 All are types of Recurrent Expenditure Warrant except:
Provisional General Warrant (PGW)
Annual General Warrant of Recurrent Expenditure (AGW/RE)
Supplementary General Warrant of Recurrent Expenditure (SGW/RE)
None of the above.
Q14 . Public goods are goods which are collectively consumed, non-rival in consumption and not subject to the exclusion principle. Examples include
Roads
National defence
Street lights
all the above
Q15 Debt Restructuring is a mechanism for reducing a country’s debt burden through such strategies the following except:
Debt refinancing arrangement
Debt Management
Debt rescheduling
Debt buy-back offering a substantial discount to payoff an existing debt.
Q16 Methods of reducing financial frauds in public sectors are except:
Spot check by Internal Auditor
Job Enrichment
Periodic Audit
Dual control of major keys
Q17 Types of fraud are stated below except:
Subversion of facts e.g. failure to collect Government revenue, non-recovery of advances, non-posting of ledgers, keeping cash in transit for long period. Failure to prepare bank reconciliation, failure to retire an Advance, Contract Splitting to break expenditure limit.
Teeming and Lading: This is a method by which the deficiencies of cash are concealed for some time. When cash is received from a debtor, the credit is delayed until cash is received from another debtor and now used to update the first debtor’s account.
Embezzlement: e.g. Diversion of Government fund into personal use, payment for jobs not executed.
deflation of prices e.g. supply of reliable materials at a reduce cost, payment of salaries are allowances to staff, authorised variation of contracts or procurement costs.
Q18 The key factors which militate against efficient and effective budget implementation in the public sector are as follows except:
System Error
Inflation
Change in government policies.
Fiscal indiscipline.
Q19 Zero-base budgeting can be refers to as all except:
This is a management effort which provides for systematic consideration of all activities and programmes.
The technique requires every item of expenditure to be justified as if the particular activity or programme is taking off for the first time.
It is the preparation of operating budgets from a “high-base” of expenditure cost.
Under the technique, resources are not necessarily allocated in accordance with the previous patterns.
Q20 Zero-base budgeting can be define as all except:
Zero-based budgeting involves the use of decision package approach, based on the identification of activities
Identification of decision units and formulating operational plans. The entire Ministry or Parastatals is divided into smaller components called decision units.
A technique used for presenting public expenditure in form of functions or projects to be undertaken, highlighting the cost implications.
Analysing the whole budget into decision packages; based on the “decision units”, to which costs are assigned and to the alternative ways of executing the same operation.
Q21 The essentials features of performance budgeting are Except:
Classification of budgets in terms of performance and activities
Measurement of work done or output provided by each activity
Expression of budget in a way which allows direct comparison between a project cost and the anticipated income or benefits
None of the above
Q22 The following are the purposes which a government budget serves Except:
It highlights government’s policies which are designed to promote economic growth, full employment and enhance the quality of life of the citizenry
It is a useful guide for the allocation of available resources
The executive arm uses the budget as a means of accountability for the money earlier entrusted and the appropriation of money newly approved; through the legislature
None of the above
Q23 Financial assistance that comes from one government to another government at the international or local level is described as a:
Loan
Grant
Lack of a decision criterion for project selection
Reimbursement
Q24 The following are problems associated with the use of cost-benefit analysis in the appraisal of public sector projects EXCEPT:
Valuation of implicit costs
Valuation of intangible benefits
Choosing the appropriate discount rate
Obtaining information on all costs and benefits identifiable with a project
Q25 An audit which checks the relevance and adequacy of documents that support a transaction is called:
Verification Audit
Management Audit
Final Audit
Vouching Audit
Q26 When public enterprises become inefficient and a huge drain pipe for scarce financial resources invested on them, the Federal Government embarks on:
Indigenisation
Nationalisation
Privatisation
Globalisation
Q27 The following are examples of financing activities EXCEPT
Payments of the owners to acquire the enterprise’s shares
Proceeds from issuing shares and other equity investments
Payments to acquire property, plant and equipment, intangible and other long-term assets
Repayments of amount borrowed
Q28 Which of the following statements is NOT TRUE of Net Present Value approach of project appraisal in the Public Sector. It
Takes the risk involved in each project into consideration
Relies heavily on the estimation of the cost of capital
Does not provide a measure of a project actual rate of return
Uses all cash flows occurring over the entire life of the project
Q29 The argument that revenue allocation to each State should at least be sufficient to maintain existing facilities is hinged on the principle of:
Need
Even development
National interest
Independent revenue
Q30 Intervention of Government in the economy may be justified on the following grounds EXCEPT:
Provision of merit goods
Provision of private goods
The need to stabilise the economy
Inequality in income distribution
Q31 Which of the following is NOT an instrument for procuring domestic public debt?
Commercial Papers
Treasury Bills
Treasury Bonds
Treasury Certificates
Q32 A surplus budget may be used to:
Reflate the economy
Tackle economic recession
Tackle the problem of inflation
Encourage consumption of foreign goods
Q33 Which of the following is NOT necessarily a way in which Medium- Term-Expenditure Framework improves budget processes?
Clarity of policy objectives and improved predictability of budget allocations
Comprehensive coverage over public services
Improved use of Information and Communications Technology (ICT)
Improved transparency in the use of resources
Q34 Which of the following is NOT a function of the Fiscal Responsibility Commission?
Monitoring and enforcing the provisions of the Fiscal Responsibility Act
Sanctioning economic saboteurs
Disseminating national and international standard practices which will result in Create efficiency
Making rules for carrying out its functions
Q35 Virement of funds from one sub-head to the other may be granted under the following conditions EXCEPT:
It is not used to create a new sub-head
It shall not be used to re-introduce items disallowed by the Estimate Committee
It is issued after the final approval of the President
It does not apply to queries raised by the Auditor-General
Q36 Which of the following is a budgetary system that focuses on results or output achieved?
Performance budgeting
Perspective budgeting
Flexible budgeting
Periodic budgeting
Q37 The following are the duties of Economic and Financial Crimes Commission (EFCC) EXCEPTthe:
Determination of the extent of financial loss by government, individual or organisation
Enforcement and due administration of the provisions of the EFCC Act
Enforcement of all economic and financial crimes
Investigations of all financial crimes
Q38 Which of the following is NOT a member of the Federation Account Allocation Committee?
The Minister of Finance
The Minister of Industry, Trade and Investment
All States’ Commissioners of Finance
All States’ Accountants-General
Q39 Which of the following is NOT an external user of Government Accounting?
The public
The investors
The suppliers
The employees
Q40 The opening of bank accounts by Federal Parastatals and Agencies of government as required by Financial Regulations should be authorized by:
Chairman Federal Inland Revenue Service
Central Bank of Nigeria Governor
Permanent Secretary Ministry of Finance
Accountant-General of the Federation
Q41 The Act of National Assembly that provides for the prudent management of the nation’s resources, encouraging and ensuring accountability and transparency in the handling of the nation’s resources is the :
Pension Reform Act, 2007
Economic and Financial Crime Commission Act, 2007
Procurement Act, 2007
Finance (Control and Management) Act, 1958
Q42 IPSAS 5 discloses ——————
borrowing cost
accounting for investment in associates
financial reporting of interests in joint ventures
the effect of changes in foreign exchange rates
Q43 IPSAS 4 discloses ————-
borrowing cost
accounting for investment in associates
financial reporting of interests in joint ventures
the effect of changes in foreign change rates
Q44 The statement of national debt is divided into ——————– and —————– components
open and close
reserve and extension
up and down
internal and external
Q45 The section that is charged with the responsibility of preparation and publication of monthly and annual statements of account is —————-
treasury
accounts
Final
Revenue
Q46 The balance carried forward on the trial balance account
N538,100,000
N534,000
N538,100
N43,000.000
Q47 What was the profit on disposal of investment on the trial balance?
N2,200
N2,200,000
N2,400,000
N32,000
Q48 The bad debt written off in the trial balannce account was ————-
N12,000
N13,000
N1,400,000
N1,500,000
Q49 Calculate the fund balance in the trial balance
N140,400,OOO
N164,OOO
N162,OOO
N162,OOO, 000
Q50 In the trial balance —————– was the loan receivable
N61,OOO
N6,OOO,OOO
N61,OOO,000
N61,100
Q51 The loan receivable account was————— in the cash account
N53,900,OOO
N73,OOO,OOO
N63, 000,000
N3, 600,000
Q52 What was the bad debt recovered in the cash account
N6,OOO
N8,OOO,OOO
N8,OOO
N6,OOO,OOO
Q53 The gift fund balance was in the cash account —————–
N6,OOO,OOO
N15, 000
N6,OOO
Nl5, 000, 000
Q54 Investment disposal account summed up to be ————– in the cash account
N3, 000, 0001
N6, 000
N63, OOO,OOO
N6, 000, 000
Q55 The balance brought forward of Wolex memorial loan fund was ———–in the cash account
N4, 400,000
N,400, 000
N9,OOO,OOO
N4,OOO,OOO
Q56 Calculate the fund balance in the trial balance
N140,400,OOO
N164,OOO
N162,OOO
N162,OOO, 000
Q57 When an organisation which is not privately owned and operated but established and financed by the government on behalf of the public, it is
private enterprise
societal enterprise
public enterprise
NGO
Q58 One of these is not charged from the development fund
summary of capital expenditure payments
general administration
contribution from the consolidated fund
external financial obligation
Q59 Charges from the development fund may also be categorized into ————– classes
2
3
4
5
Q60 A ____________is a tax imposed on value which the supplier or seller of good/services and the goods before selling it
imprest
discount
VAT
all of the above
Q61 The consolidated revenue fund was established by section 80 of the Constitution and does NOT include
revenue items which are specifically designed to other funds
the fund for IT development
income from the local government
revenue from state government
Q62 The sources of revenue payable to the federation accounts include:_________ and —————-
federal, states and local government
federal pay Officer, chairman local government
direct taxes, indirect taxes and mining
mining, agriculture and direct taxes
Q63 Composition of federation accounts allocation committee include all of these EXCEPT
all state commissioners of finance
all states accountants general
the permanent secretary of the federation, ministry of finance
non-governmental agencies
Q64 ——————–balances the account between two or more persons principal and his agent showing what is due from one person to another
token vote
budgetary control
current account
above the line accounts
Q65 Budgetary control concept states that ———————-
government should not undertake any action without a prior budget for it
rules and instructions to be followed
token vote is often represented by the symbol 10e
current accounts are often used to care of transaction between the federal and state government and their agencies
Q66 —————– and ————- are types of imprest
special and standing
single and double
multiple and additional
ordinary and double
Q67 There are ——————- types of imprest
2
3
4
5
Q68 Composition of federation accounts allocation committee include all of these EXCEPT
all state commissioners of finance
all states accountants general
the permanent secretary of the federation, ministry of finance
non-governmental agencies
Q69 Which of the following would be classified as the objective of public sector accounting: (i)ascertaining the propriety of transactions and their conformity with established rules, giving evidence of financial accountability and serving as a basis for planning, controlling, decision making and appraisal of performance (ii) evaluating the economy, efficiency and effectiveness with which resources are managed (iii)finding out how capital expenditure is financed
(i) only
(ii) only
(i) and (iii)
(i),(ii) and (iii)
Q70 What is an imprest
An imprest is defined as a small amount of money set aside to meet cash payments, the vouchers of which cannot be presented to a sub-accounting officer immediately
defined as officer other than a sub-accounting officer who is charged with disbursement of public money
defined as government regulations that increases expenditure
defined as the petty cashier who handles cash
Q71 Which of the following would be classified as the objective of public sector accounting: (i)ascertaining the propriety of transactions and their conformity with established rules, giving evidence of financial accountability and serving as a basis for planning, controlling, decision making and appraisal of performance (ii) evaluating the economy, efficiency and effectiveness with which resources are managed (iii)finding out how capital expenditure is financed
(i) only
(ii) only
(i) and (iii)
(i),(ii) and (iii)
Q72 ———————–keeps official receipts and collects specified forms of revenue on behalf of the government
tax collector
treasurer
revenue collector
accountant
Q73 A basis under which financial transactions are recorded only when cash is received or paid is known as
modified cash basis
modified accrual basis
cash basis
commitment basis
Q74 The treasury cash book is divided into two parts namely ——————- and —————–
debit and credit sides and each side contains eight columns
credit and expenditure
ledger and expenditure
none of the above
Q75 One of these is not a function of the sub-accounting officer
ensuring prudence and accountability in the expenditure of public funds
ensuring that the proper system of account as prescribed by the accountant general is established
exercising supervision over the receipt: of public revenue and ensuring prompt collection
promptly charging in his accounts under proper heads and sub-heads all disbursements
Q76 A basis under which financial transactions are recorded only when cash is received or paid is known as
modified cash basis
modified accrual basis
cash basis
commitment basis
Q77 Which of the following would be classified as the objective of public sector accounting: (i)ascertaining the propriety of transactions and their conformity with established rules, giving evidence of financial accountability and serving as a basis for planning, controlling, decision making and appraisal of performance (ii) evaluating the economy, efficiency and effectiveness with which resources are managed (iii)finding out how capital expenditure is financed
(i) only
(ii) only
(i) and (iii)
(i),(ii) and (iii)
Q78 Public sector comprises all organizations which are not privately owned and operated, but which are established, run and financed by ————-on behalf of the public
Government
Corporations
International
Public
Q79 The consolidated revenue fund was established by section 80 of the Constitution and does NOT include
revenue items which are specifically designed to other funds
the fund for IT development
income from the local government
revenue from state government
Q80 The overall objective of commercial enterprises is to maximize profit, while that of government is to———–
provide adequate services to the people at reasonable costs
increase expenditure
reduce income
determine supply
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