Accounting Q&A · Government Accounting · Topic 11
Practise 25 government accounting questions on municipal revenue, infrastructure and controls 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 city bills 250,000 in property taxes and collects 200,000
1. What should the accountant establish?
Identify the 50,000 uncollected amount before other changes.
2. What evidence should be obtained?
Obtain the tax roll, adjustments and collection records.
3. What calculation or procedure would help?
Reconcile bills, payments, cancellations and closing receivables.
4. What limitation or alternative matters?
Billing does not establish that the entire balance is collectible.
5. What should happen next?
Review arrears and recognise allowances as applicable.
A municipality installs a new water main
6. What should the accountant establish?
Assess infrastructure recognition and future maintenance.
7. What evidence should be obtained?
Collect project costs, commissioning dates and control evidence.
8. What calculation or procedure would help?
Reconcile qualifying capital costs to the asset register.
9. What limitation or alternative matters?
Routine repairs have a different treatment from qualifying construction.
10. What should happen next?
Document components and depreciation assumptions.
A local authority receives money earmarked for recycling
11. What should the accountant establish?
Track the permitted purpose and any enforceable requirements.
12. What evidence should be obtained?
Read the grant agreement and expense records.
13. What calculation or procedure would help?
Test charges against eligibility and reporting deadlines.
14. What limitation or alternative matters?
A separate bank account does not establish compliance.
15. What should happen next?
Reconcile restricted balances and report exceptions.
A parking office handles large cash receipts
16. What should the accountant establish?
Reduce the risk of unrecorded collections.
17. What evidence should be obtained?
Collect ticket logs, settlement reports and deposit records.
18. What calculation or procedure would help?
Compare issued tickets and refunds with bank deposits.
19. What limitation or alternative matters?
Offline collection periods can create legitimate timing differences.
20. What should happen next?
Investigate gaps and assign independent review.
A city creates a legally separate transport entity
21. What should the accountant establish?
Determine whether it belongs in municipal consolidated statements.
22. What evidence should be obtained?
Collect governance documents and financial arrangements.
23. What calculation or procedure would help?
Apply the applicable control criteria.
24. What limitation or alternative matters?
Legal separation alone does not settle the reporting boundary.
25. What should happen next?
Document inclusion or exclusion and reconcile group transactions.