South Valley University – Faculty of Commerce Date: 29/ 12/ 2019 Time: 3 Hours Governmental & National Accounting 4th year – English Section Answer the following questions (This Exam includes four questions, containing 40 statements) First Question: Indicate whether each of the following statement is true (T) or false (F): 1- In the scope of public services, there is rarely competition. 2- The governmental unit property is owned by management and people. 3- The basis of accounting measurement which will be applied in the near future is modified accrual basis. 4- The theory of allocated fund focus on controlling the appropriations. 5- The state's general budget is a financial program of the next year. 6- According to comprehensiveness principle, there is no allocation of the revenues of a certain governmental unit to cover the expenses of the same unit. 7- The accounting books are composed of three journals and various ledgers. 8- If an amount of 75000 collected as sovereign revenue of unknown kind, we will record debit to revenue under settlement account. 9- Upon paying the disbursements for the settlement of the payment orders, we will record payment order sent account debit. 10- The governmental documents can be classified into expenditure documents and receivables documents. Second Question: Choose the most appropriate answer for each of the following The information required for the preparation of the capital budget of one of the governmental units for the financial year 2018/2019 is provided as below (amounts in L.E. millions): A- Projects which are expected to be undertaken during the new financial year: * Completion projects 990 * Expansion and new projects 3075 * Replacement and renovation projects 2235 B- The other capital transfers are estimated, during the budget year, to amount to 510 C- The unit obtained in March 2014 a local loan for 6450 to be repaid over 5 equal annual installments, the first one of which fall due and matures in November 2018. D- It is expected that the unit would lend local entities, with the value of the loan being 2400. E- It is expected that the proceeds of the sales of assets would amount to 2250. F- The value of the capital aids and grants expected during the budget year amounts 1500. G- The value of loans from the National Investment Bank which are expected to be obtained during the budget year amounts 3000. H- The value of the loans installments expected to be collected amounts to 1950. I- It is expected to finance the rest of the investment utilisations and the capital transfers throughout credit facilities. J- The financial information related to the financial year 2017/2018 includes the following: * Completion projects 1523 * Expansion and new projects 2257 * Replacement and renovation projects 1980 * Repayment of local loans 1230 * Other capital transfers 375 * Lending to local entities 2235 * Cost of sold assets 2400 * Capital aids and grants 1350 * Loans from National Investment Bank 2700 * Collected from loans installments 1500 * Credit facilities 1650 Given that 60% of the capital resources are used to finance the investment utilisations, with the rest being used to finance the capital transfers. Use the below data to answer the following series of questions 1-9 1- Final budget of investment utilisations will be: A- 5760 B- 6300 C- 5835 D- another amount 2- Final budget of chapter four (Expenditure) will be: A- 9360 B- 3840 C- 4200 D- another amount 3- Approved budget of group 2 chapter three resources that finance investment utilisations will be: A- 1380 B- 2070 C- 1710 D- another amount 4- Approved budget of group 3 chapter four (resources) that finance investment utilisations will be: A- 990 B- 720 C- 1080 D- another amount 5- Approved budget of group 2 chapter four utilisations will be: A- 1290 B- 1230 C- 1020 D- another amount 6- Approved budget of group 2 chapter three, that finance capital transfer will be: A- 760 B- 1380 C- 920 D- another amount 7- Approved budget of group 3 chapter four that finance capital transfer will be: A- 720 B- 1080 C- 660 D- another amount 8- What is the final budget of total capital utilisations for budget year? A- 10500 B- 8700 C- 9675 D- another amount 9- What is the difference in the loans from the national investment Bank between the budget year and the year of 2017/2018: A- no change B- increased 300 L.E C- decrease 300 L.E D- another answer 10- Group 3 chapter 4capital transfer is: Acommodity Binvestment Cfinancial D- another answer formation expenditure investments Third Question: Choose the most appropriate answer for each of the following First: 11- The following data related to one the National Economic Sectors, which consists of three economic entities as follows (amount in L.E. Millions) Description A B C 50000 100000 200000 Purchases from other entities 50000 100000 Beginning inventory 1250 11250 Ending inventory 2500 3750 Sales According to final product method, the value of national product will be: A- 208750 B- 206250 C- 193750 D- another amount 12- Using the above data provided in 11. according to value added method, the value added by economic entity (B) will be: A- 51250 B- 48750 C- 50000 D- another amount Second: Here under are the production data relating to the National Economic Sectors of a State for the year ended June 30, 2019 (amounts in L.E. Millions): Sales of commodities & services 20000 Self consumption of products 4000 Production remnants 5000 Gross local product at market prices 21500 Net local product at market prices 21000 Net local product at production factor's cost 20800 Net national product at production factor's cost 22000 Indirect taxes 600 Use the above data to answer the following series of questions 13-17 13- Net factorial incomes from or to abroad will be: A- 1200 B- 500 C- 200 14- Subsidies will be: A- 600 B- 200 C- 400 15- Depreciation of fixed capital will be: A- 200 B- 500 C- 1200 D- another amount D- another amount D- another amount 16- Intermediary commodities& services requisites will be: A- 7500 B- 1200 C- 500 17- Production at market prices will be: A- 27000 B- 24000 C- 25000 D- another amount D- another amount Third: 18- If consuming expenditure equal 175000 L.E. and investment expenditure equal 50000, and rent equal 325000 then, national income will be: A- 550000 B- 225000 C- 500000 D- another amount 19- Which of the following is not consider from the economic sectors: A- inside sector B- family sector Cgovernmental D- another answer sector 20- Which of the following is consider when measuring national income: A- interest on capital B- donations Crevaluation& D- another answer capital profit Fourth Question: Choose the most appropriate answer for each of the following 21- The governmental units aim at: A- providing services for free B- providing services& commodities C- providing services, commodities& funds D- providing service that society see it as necessary 22- The public authorities prepare: A- profit and loss account C- trading account B- income statement D- resources& expenditure account 23- The delivery of assets into the responsibility of an employee represent: A- system of trusts C- system of keeping B- system of guarding D- another answer 24- In a governmental unit, the fixed assets treated as: A- unit's assets C- unit's resources B- unit's liabilities D- unit's expenditure 25- The size of governmental expenditure represent: A- taxes shall not be borne by the society C- A & B B- the purchasing power shall be made D- another answer available in the state 26- Principles of the state's general budget are: A- 5 principles C- 7 principles B- 6 principles D- another answer 27- The examination and auditing of financial results of the implementation of budgets of various entities is the responsibility of: A- CAA C- Parliament B- ministry of planning D- another answer 28- Group 2 in chapter 2: current expenditure& transfers-current and converted current expenses is: A- commodity inputs C- servicing requirements B- purchase for resale D- surplus of current operations 29- Group 5 in chapter 1: sovereign revenues is: C- value added tax A- taxes on corporate profits B- custom taxes and revenues D- fiscal stamp taxes 30- The classification bases of expenditure in the state's general budget are: C- four A- five B- six D- another answer Best Wishes Dr./ Salwa Nasr
