Government Accounting · Topic 8

Public Sector Non-Exchange Revenue Quiz

Work through 25 multiple-choice questions, one at a time. Submit each answer for feedback. At the end, review your score and see which concepts to revisit.

Review the Q&AGovernment Accounting quiz path
1. A city levies a tax without providing each taxpayer an equivalent service in return. Which concept best fits this case?
2. A ministry receives cash in advance of delivering services owed under an enforceable grant arrangement. Which concept best fits this case?
3. A donor prefers spending in a region but the preference creates no enforceable obligation. Which concept best fits this case?
4. A city has an enforceable right to assessed tax before it receives cash. Which concept best fits this case?
5. A grant partly funds services already delivered and partly funds work owed in the future. Which concept best fits this case?
6. A city levies a tax without providing each taxpayer an equivalent service in return. What is the most appropriate next step?
7. A ministry receives cash in advance of delivering services owed under an enforceable grant arrangement. What is the most appropriate next step?
8. A donor prefers spending in a region but the preference creates no enforceable obligation. What is the most appropriate next step?
9. A city has an enforceable right to assessed tax before it receives cash. What is the most appropriate next step?
10. A grant partly funds services already delivered and partly funds work owed in the future. What is the most appropriate next step?
11. A city levies a tax without providing each taxpayer an equivalent service in return. Which evidence is most directly useful?
12. A ministry receives cash in advance of delivering services owed under an enforceable grant arrangement. Which evidence is most directly useful?
13. A donor prefers spending in a region but the preference creates no enforceable obligation. Which evidence is most directly useful?
14. A city has an enforceable right to assessed tax before it receives cash. Which evidence is most directly useful?
15. A grant partly funds services already delivered and partly funds work owed in the future. Which evidence is most directly useful?
16. A city levies a tax without providing each taxpayer an equivalent service in return. Which conclusion is best supported?
17. A ministry receives cash in advance of delivering services owed under an enforceable grant arrangement. Which conclusion is best supported?
18. A donor prefers spending in a region but the preference creates no enforceable obligation. Which conclusion is best supported?
19. A city has an enforceable right to assessed tax before it receives cash. Which conclusion is best supported?
20. A grant partly funds services already delivered and partly funds work owed in the future. Which conclusion is best supported?
21. A city levies a tax without providing each taxpayer an equivalent service in return. Which shortcut would most directly undermine the work?
22. A ministry receives cash in advance of delivering services owed under an enforceable grant arrangement. Which shortcut would most directly undermine the work?
23. A donor prefers spending in a region but the preference creates no enforceable obligation. Which shortcut would most directly undermine the work?
24. A city has an enforceable right to assessed tax before it receives cash. Which shortcut would most directly undermine the work?
25. A grant partly funds services already delivered and partly funds work owed in the future. Which shortcut would most directly undermine the work?
Show the answer key
  1. Non-exchange character A tax can arise without a direct exchange of equal value.
  2. Compliance obligation An advance can precede recognition of revenue.
  3. Enforceability assessment A donor preference does not automatically create a binding arrangement.
  4. Tax receivable An enforceable assessed amount may be recognized before collection under accrual accounting.
  5. Timing of revenue recognition Amounts relating to completed and future obligations can have different timing.
  6. Identify the taxable event and assess recognition under the applicable framework A tax can arise without a direct exchange of equal value.
  7. Assess the liability and recognize revenue as qualifying obligations are satisfied under the applicable model An advance can precede recognition of revenue.
  8. Evaluate whether terms create enforceable rights and obligations before choosing the revenue model A donor preference does not automatically create a binding arrangement.
  9. Evaluate asset recognition and measurement at the applicable taxable event An enforceable assessed amount may be recognized before collection under accrual accounting.
  10. Allocate and assess recognition based on satisfaction of relevant obligations Amounts relating to completed and future obligations can have different timing.
  11. Tax legislation and assessment records Identify the taxable event and assess recognition under the applicable framework.
  12. Enforceable terms and evidence of delivery Assess the liability and recognize revenue as qualifying obligations are satisfied under the applicable model.
  13. Grant letter, acceptance terms and legal context Evaluate whether terms create enforceable rights and obligations before choosing the revenue model.
  14. Assessment roll, tax law and collection records Evaluate asset recognition and measurement at the applicable taxable event.
  15. Grant terms, delivery records and allocation calculations Allocate and assess recognition based on satisfaction of relevant obligations.
  16. A tax can arise without a direct exchange of equal value Tax legislation and assessment records can support that assessment.
  17. An advance can precede recognition of revenue Enforceable terms and evidence of delivery can support that assessment.
  18. A donor preference does not automatically create a binding arrangement Grant letter, acceptance terms and legal context can support that assessment.
  19. An enforceable assessed amount may be recognized before collection under accrual accounting Assessment roll, tax law and collection records can support that assessment.
  20. Amounts relating to completed and future obligations can have different timing Grant terms, delivery records and allocation calculations can support that assessment.
  21. Treating tax receipts as payment for individually priced services A tax can arise without a direct exchange of equal value.
  22. Recognizing all advance cash as revenue solely on receipt An advance can precede recognition of revenue.
  23. Assuming every donor preference requires deferred revenue A donor preference does not automatically create a binding arrangement.
  24. Waiting for cash in every accrual reporting case An enforceable assessed amount may be recognized before collection under accrual accounting.
  25. Applying the same recognition date to all funding with no obligation analysis Amounts relating to completed and future obligations can have different timing.

These are hypothetical examples. Local reporting frameworks and budget rules vary. IPSAS 47, Revenue