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Public Sector Finance Question Paper

Public Sector Finance

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2010

UNIVERSITY EXAMINATIONS: 2009/2010
THIRD YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CFM 307-F PUBLIC SECTOR FINANCE (Day + Evening)
DATE: AUGUST 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
a) Many governments in third world countries are cash strapped and as such they face a temptation
to borrow. Discuss the arguments in favour of and against public borrowing.
(10 Marks)
b) Explain the following accounting systems generally used in public sector organisations:
i.) Budgetary accounting (2 Marks)
ii.) Accruals accounting (2 Marks)
iii.) Fund accounting (2 Marks)
c) Discuss the sources of government Revenue. (10 Marks)
d) Distinguish between tax evasion and tax avoidance. (4 Marks)
QUESTION TWO
a) Over the last few years there have been efforts to boost public sector audit in Kenya. Discuss the
goals of public sector audit and propose ways of enhancing the same in third world countries.
( 10 Marks)
2
b) There have been significant restructuring of the public sector in Kenya in the recent past. Discuss
the motivations for public sector restructuring and highlight some examples of the same.
( 10 Marks)
QUESTION THREE
a) Distinguish between zero base budgeting and program planning budgets ( 10 Marks)
b) Government accounting systems should be organized and operated on a fund basis. Discuss the
various types of government funds ( 10 Marks)
QUESTION FOUR
a) The medium term expenditure framework is one of the reforms in public finance that has been
undertaken by the Government of Kenya. Discuss the reasons why governments especially in sub
Saharan Africa are being encouraged to adopt this type of framework. ( 10 Marks)
b) The Kenyan parliament has a ‘committee of ways and means’ . Discuss what this committee is and
outline its duties (10 Marks)
QUESTION FIVE
a) Kenya has one of the best tax systems in sub-Saharan Africa. Drawing from theory of taxation,
discuss the effectiveness of the Kenyan tax system. (10 Marks).
b) Over the last few years there have been a high number of people advocating for more
deregulation of the Market in the pretext that the Market is an efficient allocator of resources.
Do you think the Market can replace the government ? (10 Marks).

Public Sector Finance Question Paper

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