Question 1

Factors considered to contribute to the reliability of information include all of the following EXCEPT:

Accepted Answer

A) representational faithfulness 
B) completeness 
C) neutrality 
D) timeliness. 
A) representational faithfulness 
B) completeness 
C) neutrality 
D) timeliness.

Question 2

The CICA PSA Handbook defines a public sector entity's ________________ as assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations.

Accepted Answer

A) current assets 
B) non-financial assets 
C) financial assets 
D) tangible capital assets. 
A) current assets 
B) non-financial assets 
C) financial assets 
D) tangible capital assets.

Question 3

Which of the following statements about the modified equity method is FALSE?

Accepted Answer

A) When a government reports on a GBE, it does so applying the modified equity method. 
B) Under the modified equity method, financial position and operating results are presented as they are using equity method. 
C) When a GBE reports other comprehensive income, it is reported on a single line on the statement of remeasurement gains and losses. 
D) Under the modified equity method, adjustments are made to conform the financial position or operating results of the GBE to the accounting principles followed by the government. 
A) When a government reports on a GBE, it does so applying the modified equity method. 
B) Under the modified equity method, financial position and operating results are presented as they are using equity method. 
C) When a GBE reports other comprehensive income, it is reported on a single line on the statement of remeasurement gains and losses. 
D) Under the modified equity method, adjustments are made to conform the financial position or operating results of the GBE to the accounting principles followed by the government.

Question 4

Many view ______________ as the overriding characteristic of public sector entities.

Accepted Answer

A) multiple objectives 
B) lack of equity ownership 
C) public accountability 
D) governance structures. 
A) multiple objectives 
B) lack of equity ownership 
C) public accountability 
D) governance structures.

Question 5

What are the primary criteria in evaluating whether a government organization is controlled by a government?

Accepted Answer

Any of the following three criteria are

Question 6

The carrying value of tangible capital assets represents a source of future cash flows from the capital assets to the government.

Accepted Answer

A) True 
 B)False

Question 7

An objective of financial statements for public sector entities is to provide an accounting of financial affairs and resources.

Accepted Answer

A) True 
 B)False

Question 8

When a government reports on a GBE it does so applying the _____________ method.

Accepted Answer

A) modified equity 
B) cost 
C) equity 
D) consolidation. 
A) modified equity 
B) cost 
C) equity 
D) consolidation.

Question 9

Why is a public sector financial reporting framework needed?

Accepted Answer

A public sector financial reporting fram

Question 10

Based on the organizations' objectives, which of the following government organizations can choose to report under the CICA PSA Handbook or IFRS?

Accepted Answer

A) Other government organizations. 
B) Local governments. 
C) Government business enterprises. 
D) Government not-for-profit organizations. 
A) Other government organizations. 
B) Local governments. 
C) Government business enterprises. 
D) Government not-for-profit organizations.

Question 11

The application of __________________ means that judgments needed when uncertainty exists should not be made in a manner that affects the neutrality of the information presented.

Accepted Answer

A) Conservatism 
B) Representational faithfulness 
C) Completeness 
D) Verifiability. 
A) Conservatism 
B) Representational faithfulness 
C) Completeness 
D) Verifiability.

Question 12

Financial Statement Presentation, CICA PSA Handbook, requires governments and public sector entities to include indicators of financial position, the measure of operating surplus or deficit and other information for the benefit of financial statement users. The statement of financial position indicators include:

Accepted Answer

A) Net debt. 
B) Operating surplus or deficit. 
C) Change in net debt. 
D) Cash and cash equivalents. 
A) Net debt. 
B) Operating surplus or deficit. 
C) Change in net debt. 
D) Cash and cash equivalents.

Question 13

Accountability value is in evidence when the information helps users assess a public sector entity's stewardship of the resources entrusted to it, including their application or consumption in service provision.

Accepted Answer

A) True 
 B)False

Question 14

____________________ value is in evidence when information helps users assess a public sector entity's stewardship of the resources entrusted to it, including their application or consumption in service provision.

Accepted Answer

A) Accountability 
B) Predictive 
C) Feedback 
D) Representational 
A) Accountability 
B) Predictive 
C) Feedback 
D) Representational

Question 15

Which of the following is one of the "secondary criteria" used to determine whether a government organization is controlled by the government?

Accepted Answer

A) Establishes an organization's fundamental purpose and eliminates or significantly limits the ability of the organization to make future decisions by predetermining the financial and operating policies of the organization. 
B) Directs the financial and operating policies of an organization on an ongoing basis. 
C) Has power to unilaterally appoint or remove a majority of the members of the organization's governing body. 
D) Can veto, overrule or modify the financial and operating policies established by an organization. 
A) Establishes an organization's fundamental purpose and eliminates or significantly limits the ability of the organization to make future decisions by predetermining the financial and operating policies of the organization. 
B) Directs the financial and operating policies of an organization on an ongoing basis. 
C) Has power to unilaterally appoint or remove a majority of the members of the organization's governing body. 
D) Can veto, overrule or modify the financial and operating policies established by an organization.

Question 16

Many view the presence of multiple objectives as the overriding characteristic of public sector entities.

Accepted Answer

A) True 
 B)False

Question 17

An exchange gain or loss that arises prior to settlement (i.e. that is unrealized)is recognized in the statement of re-measurement gains and losses.

Accepted Answer

A) True 
 B)False

Question 18

Regarding the qualitative characteristics of public sector reporting, which of the following items apply to "relevance?"

Accepted Answer

A) Representational faithfulness. 
B) Completeness. 
C) Neutrality. 
D) Timeliness. 
A) Representational faithfulness. 
B) Completeness. 
C) Neutrality. 
D) Timeliness.

Question 19

What reporting basis should the government use in reporting its investment in Turbine Corp., a government business enterprise, use?

Accepted Answer

A) Equity method. 
B) Modified equity method. 
C) Consolidation. 
D) Cost method. 
A) Equity method. 
B) Modified equity method. 
C) Consolidation. 
D) Cost method.

Question 20

A public sector financial reporting framework is needed because governments differ in their aims and objectives from business.

Accepted Answer

A) True 
 B)False

Factors considered to contribute to the reliability of information include all of the following EXCEPT:

The CICA PSA Handbook defines a public sector entity's ________________ as assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations.

Which of the following statements about the modified equity method is FALSE?

Many view ______________ as the overriding characteristic of public sector entities.

What are the primary criteria in evaluating whether a government organization is controlled by a government?

The carrying value of tangible capital assets represents a source of future cash flows from the capital assets to the government.

An objective of financial statements for public sector entities is to provide an accounting of financial affairs and resources.

When a government reports on a GBE it does so applying the _____________ method.

Why is a public sector financial reporting framework needed?

Based on the organizations' objectives, which of the following government organizations can choose to report under the CICA PSA Handbook or IFRS?

The application of __________________ means that judgments needed when uncertainty exists should not be made in a manner that affects the neutrality of the information presented.

Accountability value is in evidence when the information helps users assess a public sector entity's stewardship of the resources entrusted to it, including their application or consumption in service provision.

____________________ value is in evidence when information helps users assess a public sector entity's stewardship of the resources entrusted to it, including their application or consumption in service provision.

Which of the following is one of the "secondary criteria" used to determine whether a government organization is controlled by the government?

Many view the presence of multiple objectives as the overriding characteristic of public sector entities.

An exchange gain or loss that arises prior to settlement (i.e. that is unrealized)is recognized in the statement of re-measurement gains and losses.

Regarding the qualitative characteristics of public sector reporting, which of the following items apply to "relevance?"

What reporting basis should the government use in reporting its investment in Turbine Corp., a government business enterprise, use?

A public sector financial reporting framework is needed because governments differ in their aims and objectives from business.

Accounting for Investments

Business Combinations

Consolidation: Wholly Owned Subsidiaries

Consolidations: Intragroup Transactions

Consolidation: Non-Controlling Interest

Accounting for Investments in Associates and Joint Ventures

Accounting for Foreign Currency

Accounting for Foreign Investments

Reporting for Not-For-Profit Organizations

Filters

Exam 10: Reporting for Public Sector Entities

Factors considered to contribute to the reliability of information include all of the following EXCEPT:

The CICA PSA Handbook defines a public sector entity's ________________ as assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations.

Which of the following statements about the modified equity method is FALSE?

Many view ______________ as the overriding characteristic of public sector entities.

What are the primary criteria in evaluating whether a government organization is controlled by a government?

The carrying value of tangible capital assets represents a source of future cash flows from the capital assets to the government.

An objective of financial statements for public sector entities is to provide an accounting of financial affairs and resources.

When a government reports on a GBE it does so applying the _____________ method.

Why is a public sector financial reporting framework needed?

Based on the organizations' objectives, which of the following government organizations can choose to report under the CICA PSA Handbook or IFRS?

The application of __________________ means that judgments needed when uncertainty exists should not be made in a manner that affects the neutrality of the information presented.

Accountability value is in evidence when the information helps users assess a public sector entity's stewardship of the resources entrusted to it, including their application or consumption in service provision.

____________________ value is in evidence when information helps users assess a public sector entity's stewardship of the resources entrusted to it, including their application or consumption in service provision.

Which of the following is one of the "secondary criteria" used to determine whether a government organization is controlled by the government?

Many view the presence of multiple objectives as the overriding characteristic of public sector entities.

An exchange gain or loss that arises prior to settlement (i.e. that is unrealized)is recognized in the statement of re-measurement gains and losses.

Regarding the qualitative characteristics of public sector reporting, which of the following items apply to "relevance?"

What reporting basis should the government use in reporting its investment in Turbine Corp., a government business enterprise, use?

A public sector financial reporting framework is needed because governments differ in their aims and objectives from business.

Accounting for Investments

Business Combinations

Consolidation: Wholly Owned Subsidiaries

Consolidations: Intragroup Transactions

Consolidation: Non-Controlling Interest

Accounting for Investments in Associates and Joint Ventures

Accounting for Foreign Currency

Accounting for Foreign Investments

Reporting for Not-For-Profit Organizations

Filters