Arguments Against the Adoption of Accrual Accounting,and Hence for the Retention

question 16

Multiple Choice

Arguments against the adoption of accrual accounting,and hence for the retention of fund accounting,for the government sector include:

• A) there is more continuity with fund accounting
• B) fund accounting provides a better picture of the public sector's assets and liabilities than is possible under accrual accounting
• C) fund accounting is best suited to meet the accountability objective of public sector financial reporting
• D) fund accounting allows a measurement of the full cost of providing goods and services

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Definitions:

Line Managers

Managers who are directly involved in day-to-day operations and have a direct responsibility for achieving the organization's goals.

Pay Raises

An increase in an employee's salary or wages, often based on performance, promotion, or inflation adjustments.

Staff Function

Support roles within an organization that provide specialized advice and assistance to line management.

Operations Department

The division within a company that is responsible for producing goods or services efficiently and effectively.