5 fill-in questions related to another case * 3 marks each = 15 Marks this level will lead to a reform at the government-wide level. However, his colleagues were This scenario relates to questions B6-B10 below. very reluctant to accept this change. Mr Walker worked in a private firm prior to joining a public sector agency of the B6. An advantage of accrual basis of accounting over cash basis is: Department of Health as an accountant in March 2020. While Walker worked at the private firm his duties included the preparation of fixed asset schedule, financial statements and a. Increased transparency performance analysis (such as financial ratio analysis) to analyse the financial performance of the firm. b. Reduced accounting information The public sector agency Walker currently works for deals with large scale transactions and Failure to take account of future commitments and contingent liabilities possesses a vast amount of long-term assets used in their day-to-day operations. Walker noticed that cash basis of accounting was used to account for revenue and expenditure in d. Increased compliance with cash budgets this agency. He then proposed the use of accrual basis of accounting to the Chief Officer of the public sector agency. Walker is confident that the success of using accrual accounting at B7. Drawing on public sector accounting literature and as referred to in the paper by Connolly and Hyndman (2011), the value for money for a public sector organisation, is assessed by 3Es. These are .. ... and .. B8. When is cash accounting more appropriate for a public sector organisation? a. When many fixed assets are being held for a long period b. When the organisation has no long-term liability c. When the organisation deals with large scale of transactions d. All of the above. B9. The success of using private sector performance indicators and targets in the public sector is debatable. Why might the use of private sector performance indicators and targets in the public sector be difficult? a. Different accountability objectives b. Contingency theory does not apply to public sector organisations c. Accrual basis involves recording income and expenditure of the public sector organisation d. Performance indicators and targets focus on a three-year period. B10. Which of the following could be a reason why Walker's colleagues were reluctant to accept accrual basis of accounting instead of cash basis a. Walker's colleagues hold relevant qualifications in accounting and have a good knowledge of accrual accounting b. Complexity of cash basis compared to accrual basis c. Costs compared to perceived value added d. None of the above