Accounting Q&A · Government Accounting · Topic 4
Practise 25 government accounting questions on cash forecasting and expenditure control using five worked public-sector cases. Try each answer before revealing it. The cases are illustrative. Check the applicable reporting framework and local budget rules.
A treasury starts with 40,000, expects receipts of 25,000 and payments of 70,000
1. What should the accountant establish?
Identify a projected cash shortfall of 5,000.
2. What evidence should be obtained?
Use dated bank balances and cash forecasts.
3. What calculation or procedure would help?
Recheck timing and classify committed payments.
4. What limitation or alternative matters?
An appropriation does not make cash available immediately.
5. What should happen next?
Escalate funding or rescheduling needs under applicable rules.
An invoice arrives without a purchase order
6. What should the accountant establish?
Check whether spending was authorised.
7. What evidence should be obtained?
Collect the invoice, delivery evidence and procurement records.
8. What calculation or procedure would help?
Trace the commitment and any approved exception.
9. What limitation or alternative matters?
Delivery evidence can support a liability even if procurement controls failed.
10. What should happen next?
Record and escalate the control exception separately.
Several agencies hold idle cash while the treasury borrows
11. What should the accountant establish?
Assess whether cash pooling can reduce funding costs.
12. What evidence should be obtained?
Obtain balances, restrictions and legal mandates.
13. What calculation or procedure would help?
Compare available cash and borrowing needs by date.
14. What limitation or alternative matters?
Restricted balances may be unavailable for general use.
15. What should happen next?
Review whether a treasury single account arrangement is appropriate.
A supplier receives 9,000 after approval of a 10,000 invoice
16. What should the accountant establish?
Explain the difference between invoice and disbursement.
17. What evidence should be obtained?
Gather payment records and any withholding documentation.
18. What calculation or procedure would help?
Reconcile the 1,000 to a valid deduction or discrepancy.
19. What limitation or alternative matters?
Net payment need not equal the original invoice.
20. What should happen next?
Clear or investigate the remaining balance.
A dashboard shows obligations, approvals and payments in one total
21. What should the accountant establish?
Avoid double counting stages of expenditure.
22. What evidence should be obtained?
Obtain transaction identifiers and status history.
23. What calculation or procedure would help?
Reconcile commitments, verified claims and disbursements separately.
24. What limitation or alternative matters?
The same transaction can appear at several stages.
25. What should happen next?
Report each stage with a clear definition and date.