On the contrary, in case of boom period public expenditure is incurred in such a way as to increase production and control the rising price-level. Administration of law and order and justice. Attempt any three (3) questions. Development of transport and communication. PUBLIC SECTOR ACCOUNTING & FINANCE (PAPER 2.5) CHIEF EXAMINER’S REPORT, QUESTIONS AND MARKING SCHEME EXAMINER’S GENERAL COMMENTS One could describe the overall understanding of the examination questions by candidates as 60% fair and 40% poor. Click here to download free kasneb cpa materials,pastpapers and mock questions.Notes and revision kits available in pdf format.Download questions & answers Download Certified Public Finance Administrator VCE also. 2. The major objectives of public expenditure are. ANSWER: a. No credit will be awarded for answers without explanations. 7. That is, after a stage, every increase in public expenditure creates less and less benefit for the people. As the total public expenditure goes on increasing in course of time, the law of diminishing marginal utility operates. d) Degressive Tax: A Degressive tax is one on which tax is progressive up to a certain limit, after that it is proportional, i.e., charged at flat rate. 3. Our CPFA Question Bank includes dumps PDF, Practice Test, cheat sheet in questions and answers format. What might be considered as the point of maximum social advantage under some conditions may not be so under some other. I applied online. Discuss each of them in brief. What does the size of public revenue then indicate. What are the welfare activities where these revenues are spent? Something will not be allowed the plea that it was done in the past. (a) What are the main instruments of financial administration? b) Public expenditure should be utilized among the various uses in an optimum manner, and. Basic Technical Finance Interview Questions and Answers. The success of economic planning depends on the public expenditure because: (i) Economic planning itself requires heavy public expenditure; (ii) For the success of economic planning proper allocation of public expenditure is to be done on different items, such as, roads, transport, irrigation, electricity and power, industries, agriculture etc; (iii) the government is required to establish and manage the working of several government undertakings including public utility undertakings; (iv) Speedy capital formation is to be undertaken, and (v) balanced economic development. This part studies the fundamental principles that govern the flow of Government funds into various streams. 2. But, in practice, a significant portion of public expenditure is also financed by other sources like public borrowing, profits from public sector enterprises, imposition of fees, penalties etc. Mere Availability of Means: Public revenue is only, a means and the mere availability of means indicates nothing. It is reconsideration of each item of expenditure from the very beginning. Taxes are compulsory contributions imposed by the government on its citizens to meet its general expenses incurred for the common good, without any corresponding benefits to the tax payer. to the industrialists to achieve this objective. Fines are imposed as a form of punishment or to prevent people from breaking the law. As Dalton puts, “That system of public expenditure is best which has the strongest tendency to reduce inequalities of income”. (b) What are the pre-conditions of zero-base budgeting? Auditing. 3. 7+4=11. And we have to say also that some fail because they are mischievous. Kumar Nirmal Prasad is the founder and CEO of Dynamic tutorials and Services. For the success of financial administration of the Government, different constitution play imperative role. (a) Write a note on Union and State Financial Relations. Public expenditure has, thus, an important rule in reducing economic inequalities in the community. Ans: The best system of public finance is that which secures the maximum social advantage. Financial Accounting is one of the core subjects for Senior Secondary school students in commercial classes. 6. Corporation tax Union taxes are given in the list of 7th schedule in the constitution. In a modern welfare state, public revenue is of two types: (a) Tax Revenue: A fund raised through the various taxes is referred to as tax revenue. Emphasis will be given to economical activities and alternative courses of action will also be studies. It is therefore, the responsibility of the executive to prepare the budget which is stupendous task. It, 5. A government needs income for the performance of a variety of functions and meeting its expenditure. Thus, The Government has to present all tax proposals before parliament in the form of a Bill to be passed into law and unless no art is passed, no tax can be levied. (i) Public finance (ii) Private finance ANSWER: c. Effective revenue deficit Effective revenue deficit= revenue deficit-grants for creation of capital assets. "- is an invalid assumption. Public Finance Exam January 26, 2015, 9:00-12: Explain your answers briefly but adequately. (a) What is Financial Administration? (a) Discuss about the various sources of public revenue. India is not a small country. (a) Mention the similarities between Public Expenditure and Private Expenditure. 5. But this is not possible practically. How is public revenue important in economic development? Thus the focuses on the procedure which ensure the lawful use of public funds. Public revenue consists of only taxes and there is no other source of income to the government. For example, fees are charged for issuing of passports, driving licenses, etc. In broad sense, it includes all the income and receipts, irrespective of their sources and nature, which the government happens to obtain during any period of time. Similarly U.S.A constitution under article one mentions, “The congress shall have to levy and collect tax.”Therefore under, we can conclude that the power of taxation always vests with literature. A grant from one government to another is an important sources of revenue in the modern days. The procedure is altogether different from the usual procedure followed in India. Discuss the role of public finance as a tool of economic and social welfare. The importance/significance/role of public expenditure may be studied under the following heads: Reduction in Disparities of Income and Wealth. 1 file(s) 194.07 KB. At CIPFA we give our students a unique opportunity to hone your exam skills by using our LIVE exam system with practice tests of exam standard questions. Estate duty was abolished in 1985. It is headed by Y V Reddy. a. government taxing activities b. government’s direct competition with the private sector c. allocation of resources d. distribution of income e. none of the above. Effects of Public Expenditure on Production: While analyzing the effects of public expenditure, Dalton very correctly said that just as taxation, other things being equal should reduce production as little as possible, so the public expenditure should increase it as much as possible. Only those activities will be undertaken which will have justification and will be essential for the business. Final Exam Professor Jonathan Gruber December 16, 2009 Please answer the following questions in your blue book, one question per blue book. It is therefore In India; executive refers to the Central Government. 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Private sector cannot undertake the development projects, where the large amount of risk and capital investment is involved. The distinction in both can also be explained as the term ‘public revenue’ used in public finance. It involves people at all levels in the organization and promotes team sprit. Only those things will be allowed which will help in realizing organizational goals. Gerelateerde Studylists. "The govt. If you are looking for public finance multiple choice questions and answers, then AssignmentShark.com is the service you need. Section B: There are four (4) questions. On the other hand, everywhere more and more money is being diverted to the building up of strong defensive and offensive force. America and United Kingdom have public revenue that is several times higher than that of our country. One of the important principles of public finance is the so – called Principle of Maximum Social Advantage explained by Professor Hugh Dalton. He further added that the level of production and employment in any country depends upon the following three factors: Effects Upon the Ability to Work, Save and Invest: If public expenditure increases the efficiency of a person to work, It will promote production and national income. In Parliamentary Government, there is a principle that no demands for grants can be made except on recommendation of the executive. These are the basic finance questions asked to start off most technical interviews. FV = PV/(1+r)*n. FV = PV x (1+r)^n. Public finance deals with people and as such most of its problems are human problems and hence depend upon human behaviour which is the subject-matter of psychology. 6+4+4=14. Sample finance interview questions with practical answer guidelines. In view of the changed circumstances, it has given more responsibilities in the social and economic field. And in the same way a country that has a small volume of public revenue is not regarded as a big power and consequently not respected by other counties. The ministry of finance has been divided into four departments, viz. 2. Sign of Prosperity: A man who has a big income is in general respected more than the other who has a smaller income. (a) Define public finance. Seligman defines a tax thus: “A tax is a compulsory contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to specific benefits conferred. This website is my favourite. Every government tries to get more money from the rich that from the poor. right hand corner on your exam cover). Each exam is unique as questions are selected at random from the test bank of over 200 questions per topic. 3. Public authority or any Government can raise income through loans to meet the short-fall in its traditional income. Grants and Gifts: Gifts are Voluntary contributions by individuals or institutions to the government. Download. This technique will be helpful in determining the utility of each and every activity of the business. People under go greater scarifies for every additional unit of taxation. Maintenance of diplomats in foreign countries. However, Prof. Dalton has defined the term in two senses – broader and narrow sense. A country whose resources, both natural and human, are not fully developed is a poor and backward country. The state was to act as passive spectator and the countries were left to the free working of the economic forces. ANSWER: d. A and b only Taxes on railway freights and fares and Stamp duties on financial documents are union taxes while tolls are state tax. Some fail because they are ignorant and some fail because they are careless. In this way, one can say that Parliament is the supreme in Finance matters. Since, Finance Ministry is responsible for the administration of the finance of the Central Government, even then it performs the policy making function and tries its best to get the final approval of the legislature. Economic and social welfare programmes like labour welfare, child welfare, women welfare, welfare of physically and mentally handicapped persons, welfare of scheduled castes, scheduled tribes, backward classes and backward areas, welfare of economically and socially weaker sections of the society etc. After the final approval of the budget by the parliament, it seeks to ensure that the amounts are properly spent in accordance with the provision of budget. Discuss the main benefits of zero-base budgeting. (a) Discuss about the scope of public finance. The tendency today is on the one hand to spend an increasing percentage of public revenue on social services and social security. Access answers to thousands of finance questions with simple, understandable explanations. Discuss the merits and demerits of each of them. Which of these do you prefer? This is ensured by the provision of audit of public expenditure by an independent statutory authority i.e. State about its relations with Economics, Political Science and Statistics 5+3+3+3=14, Ans: Scope of Public Finance (Subject Matter of Public Finance). ANSWER: a. Difference between Commercial Bank and Development Bank Comprehensive Overview Origin of the Word “Bank” The word Bank has been origin... Royalty Accounts Notes For B. Com / BBA/ MBA/ CMA Exam Introduction to Royalty Accounts: Royalty is an amount payable for utili... All Right Reserved by Dynamic Tutorials and Services. A schedule of progressive tax rate is one in which the rate of taxation increases as the tax base increases. Zero-base budgeting will be appropriate for those areas whose output is not related to production. UNIVERSITIES, COLLEGES OF EDUCATION, POLYTECHNICS. Exam November 2011, with solutions Exam January 30, 2014, questions and answers Exam March 31, 2014, questions and answers Old Exam, Public Finance January 26, 2015, questions and answers Exam 23 march, questions and answers - resit 2015-2016 Tentamen 29 Januari 2016, vragen en antwoorden. Only legible exams will be marked. CPA Exam Questions. The doses of public spending served to uplift the economic system of the world through the interaction of multiplier principle, from the cruel hands of worldwide depression. This excess may be met by borrowings from the market, borrowings from abroad, by the central bank creating currency. I interviewed at Public Financial Management. In a broad sense, it means all receipts of the government irrespective of the fact whether they are subject to repayment or not. A tax, the rate of which increases with every increase in income is called progressive tax. “All revenues received of all loans by the union or state shall be paid into in the consolidated funds of the union or state, as case may be ad that no money can be written out of. Planned development programmes cannot be undertaken without increasing public expenditure. 3. It considers all proposals to each ministry in the perspective of the government as whole. The Edgeworth Box above depicts the possible distributions of … Management Accounting Multiple Choice Questions and Answers (MCQs) For B.Com / BBA / MBA / CMA / CA / CS examination In this exclusive... Ans: Expenditure incurred by an individual to satisfy his personal want such as health, food, education etc is called private expenditure. The government at the Centre provides grants to State governments and the State governments provide grants to the local government to carry out their functions. 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