Government Accounting · Topic 4

Treasury Management and Public Expenditure 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. An agency has approved payments worth 90,000 due next week but only 70,000 of available cash. Which concept best fits this case?
2. A bank statement shows a 9,000 payment absent from the ledger. Which concept best fits this case?
3. Several public units maintain idle bank balances while Treasury borrows short term. Which concept best fits this case?
4. A public works bill arrives without confirmation that the work was accepted. Which concept best fits this case?
5. Reports show large commitments that are missing from cash outturns. Which concept best fits this case?
6. An agency has approved payments worth 90,000 due next week but only 70,000 of available cash. What is the most appropriate next step?
7. A bank statement shows a 9,000 payment absent from the ledger. What is the most appropriate next step?
8. Several public units maintain idle bank balances while Treasury borrows short term. What is the most appropriate next step?
9. A public works bill arrives without confirmation that the work was accepted. What is the most appropriate next step?
10. Reports show large commitments that are missing from cash outturns. What is the most appropriate next step?
11. An agency has approved payments worth 90,000 due next week but only 70,000 of available cash. Which evidence is most directly useful?
12. A bank statement shows a 9,000 payment absent from the ledger. Which evidence is most directly useful?
13. Several public units maintain idle bank balances while Treasury borrows short term. Which evidence is most directly useful?
14. A public works bill arrives without confirmation that the work was accepted. Which evidence is most directly useful?
15. Reports show large commitments that are missing from cash outturns. Which evidence is most directly useful?
16. An agency has approved payments worth 90,000 due next week but only 70,000 of available cash. Which conclusion is best supported?
17. A bank statement shows a 9,000 payment absent from the ledger. Which conclusion is best supported?
18. Several public units maintain idle bank balances while Treasury borrows short term. Which conclusion is best supported?
19. A public works bill arrives without confirmation that the work was accepted. Which conclusion is best supported?
20. Reports show large commitments that are missing from cash outturns. Which conclusion is best supported?
21. An agency has approved payments worth 90,000 due next week but only 70,000 of available cash. Which shortcut would most directly undermine the work?
22. A bank statement shows a 9,000 payment absent from the ledger. Which shortcut would most directly undermine the work?
23. Several public units maintain idle bank balances while Treasury borrows short term. Which shortcut would most directly undermine the work?
24. A public works bill arrives without confirmation that the work was accepted. Which shortcut would most directly undermine the work?
25. Reports show large commitments that are missing from cash outturns. Which shortcut would most directly undermine the work?
Show the answer key
  1. Cash forecasting Payment approval and available liquidity are distinct.
  2. Bank reconciliation A reconciling difference may reveal an omitted posting or unauthorized debit.
  3. Treasury single account principle Fragmented cash can contribute to avoidable short-term borrowing.
  4. Expenditure verification A valid invoice alone does not establish satisfactory delivery.
  5. Expenditure tracking by stage Cash outturn can lag obligations already in the pipeline.
  6. Identify the 20,000 funding gap and plan authorized payment timing or funding Payment approval and available liquidity are distinct.
  7. Trace the debit to authorization and investigate the difference A reconciling difference may reveal an omitted posting or unauthorized debit.
  8. Assess whether authorized consolidation or visibility of balances can improve liquidity management Fragmented cash can contribute to avoidable short-term borrowing.
  9. Match the bill to the contract and independently verify delivery before approval A valid invoice alone does not establish satisfactory delivery.
  10. Track commitment, verification and payment separately Cash outturn can lag obligations already in the pipeline.
  11. Bank position and due-date cash forecast Identify the 20,000 funding gap and plan authorized payment timing or funding.
  12. Bank debit, payment instruction and posting history Trace the debit to authorization and investigate the difference.
  13. Inventory of government bank accounts and cash forecasts Assess whether authorized consolidation or visibility of balances can improve liquidity management.
  14. Contract, certified completion and invoice Match the bill to the contract and independently verify delivery before approval.
  15. Linked purchase orders, receipt records and payment logs Track commitment, verification and payment separately.
  16. Payment approval and available liquidity are distinct Bank position and due-date cash forecast can support that assessment.
  17. A reconciling difference may reveal an omitted posting or unauthorized debit Bank debit, payment instruction and posting history can support that assessment.
  18. Fragmented cash can contribute to avoidable short-term borrowing Inventory of government bank accounts and cash forecasts can support that assessment.
  19. A valid invoice alone does not establish satisfactory delivery Contract, certified completion and invoice can support that assessment.
  20. Cash outturn can lag obligations already in the pipeline Linked purchase orders, receipt records and payment logs can support that assessment.
  21. Assuming every authorized obligation can be paid on time Payment approval and available liquidity are distinct.
  22. Posting a balancing adjustment with no investigation A reconciling difference may reveal an omitted posting or unauthorized debit.
  23. Assuming balances are unavailable without first checking restrictions Fragmented cash can contribute to avoidable short-term borrowing.
  24. Paying solely because the vendor submitted an invoice A valid invoice alone does not establish satisfactory delivery.
  25. Equating payments to date with all expected expenditure Cash outturn can lag obligations already in the pipeline.

These are hypothetical examples. Local reporting frameworks and budget rules vary. IPSASB standards and pronouncements