Which among the following can be best described as the key objective of financial reporting for government?

a.

Provide information about entitys performance during a period

b.

To compare the performance of government with other governments

c.

Analysis of the profitability of the entity

d.

To meet the legal requirements and safeguard government administrators

2)

A government unit has opening balance of office supplies amounting to RO275. The purchases made during the year is RO 80. The closing balance of inventory is RO 35. Under consumption method, the inventory expenditure amounts to:

a.

RO 390

b.

RO 190

c.

RO 230

d.

RO 320

3)

Which of the following is not an example of the function of an Agency Fund?

a.

Collection of local government sales taxes by the state government

b.

All the options listed

c.

Payment of interest and principle on long-term debt

d.

Collection of property tax by one government unit for the other

4)

The Muscat city acquires a jeep costing RO 20,000 for the police force. The acquisition is made from the resources of, and is accounted for in, the general fund. After using the vehicle for 20 years, it is sold for a scrap value of RO 100. The amount realized from the sale of jeep is credited to:

a.

Sales of general capital assets

b.

Other revenues

c.

Other financing sources

d.

The fund balance for the year