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Question 1:
(a) Explain fully the following financial accounting techniques:
i. Cash accounting ii. Accrual accounting iii. Fund accounting iv. Budgetary Accounting
(b) Explain briefly the two benefits and two limitations of cash accounting
(c) Identify and explain, with one example, the five key elements of accrual accounting.
(d) Describe how the following transactions are reported using cash and accrual accounting.
(i) Purchase of services on credit (ii) Acquisition of assets (iii) Consumption of asset through use
Question 2:
There are some distinguishing characteristics of government's operating environment that influence the type of accounting it uses.
Required:
(a) Identify and describe four characteristics that are unique to government (b) Explain the following three dimensions of Government accounting:
(i) Managerial (ii) Compliance (ii) Civil society
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