MIDTERM TEST ONLINE PUBLIC SECTOR ACCOUNTING DEC 2020

INSTRUCTION : Answers all the question

SECTION A
I. True or False

1 The Federal government is the highest tier of the government, which comprises of
ministries departments and public enterprises and the Minister is the highest body
in the federal administrative machinery
2 Yang Dipertuan Negeri or Sultan is the ruler assisted by the Ministry headed by Chief T
Minister or Menteri Besar
3 Going concern concept applicable for both public sectors and private sectors T
4 Investor who are the decision makers of the ruling government would like the F
government to perform effectively and efficiently in their duties.
5 Public Sector matched Revenue with expenses to get net income F
6 Private companies their accountability to the stockholder & the stakeholder in T
maximizing the wealth of the owners
7 In accounting, the business is consider an entity where all the business transaction T
are separate entity from the owner.
8 Private sectors often struggle with the concept of customer in satisfying & fulfill the F
public needs without concerning much on profit
9 To inform the rakyat about the financial situation of the government is the tradional F
objective of public sectors
10 Matters pertaining to the Muslim religion and Malay custom are within the exclusive T
jurisdiction of the state legislature and the state executive councils
11 The Yang di-Pertuan Agong is elected every four years in accordance with a rotating F
succession system determined by the Conference of Rulers.
12 Malaysia has a bicameral Parliament consisting of the Senate or Dewan Negara with F
70 seats; 44 appointed by the paramount ruler, 16 appointed by the state
legislatures.
13 There are the Federal Court, Court of Appeals, high courts, session's courts, F
magistrate's courts, juvenile courts and shariah courts
14 Head of statutory bodies are called chairman while the chief executive officer who T
is a civil servant is called the General Manager
15 The distribution of legislative power between the federal and state government is T
enumeratedin the Ninth Schedule of the Federal Constitution and is set out in a
Federal List, State List and a Concurrent List.
16 Judiciary is based on English common law and most of the law the constitution are T
adapted from Indian laws.
17 Central Agencies are Federal Agencies responsible for formulating the National T
Financial and Economic policies.
18 GLC is defines as company that government of Malaysia GOM control through such T
as Khazanah
19 Financial procedures Act 1957 is an act that designed for the purpose of ensuring of F
laws and policies with respect to local government.

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20 Statutory Body Act 1980 is to provide for matter relating statutory bodies. T
21 The Executive is divide by three which is PM, Cabinet of Minister and Senate. f

II. Question & Answers

1) One of the following is not a statutory regulation on the receipts and payments of
government money:
A. The 1999 Constitution
B. Finance and Control Management Ordinance of 1958, Cap. 144, 1990
C. Government gazettes
D. The Audit Act of 1956
E. Financial regulations.

2) Which of the following is not a public sector organisation?

A. Federal Government.
B. State Government.
C. Federal Radio Corporation of Nigeria.
D. Nigeria Bottling Company Plc.
E. Local Government.

3) Public sector entities are not owned and financed by the:

A. Citizens.
B. Philanthropies.
C. Members of the National Assembly
D. Federal Government
E. State Governments.

4) Which of the following is not an internal user of public sector accounting?

A. Government employees.
B. Revenue collectors.
C. Trade unions.
D. Local and foreign investors.
E. Accounting officers.

5) Which of the following is not the purpose of Government Accounting?

A. Ascertainment of the propriety of transactions.
B. Appraising the efficiency of those in authority.
C. Tracking down ghost workers.
D. Planning future operations.
E. Facilitating the carrying out of audit exercise.

6) The Malaysian Parliament consists of three components. Which one is true?

A. Yang di-PertuanAgong (the Paramount Ruler

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B. Dewan Rakyat (House of Representatives)

C. Dewan Negara (Senate)
D. All of above

7) What is the role of the Yang di-PertuanAgong?

A. He acts on the advice of the Cabinet or the Prime Minister. He has only nominal
powers and not real powers.
B. makes all decision to government
C. He is the head of the Executive branch of the government.
D. He decides the date for a general election.

8) Malaysia Judicial or the court system is composed of the superior courts and subordinate
courts. Which one is not true?
A. The Federal Court
B. High courts
C. State courts
D. Sessions courts

9) What is the aspect of Public Service Personnel Management?

A. Planning
B. Development
C. Management
D. All of above

10) Determine the vision of Malaysian Administration Modernization And Management

Planning Unit (MAMPU)
A. The PSD and envision to be world class organization in public service
B. Leader in Driving Public Service Modernization Towards Distinction by 2015
C. An ideal and effective central agency in monitoring the implementation of the
national development plan.
D. None of above.

11) What is the article that gives special attention on financial aspects about the
Expenditure charged on Federal Consolidated Fund?
A: Article 96
B: Article 97
C: Article 98
D: Article 103

12) The Treasury Instructions are applicable throughout the whole country besides
procurement. What are the procedures that contain in Treasury Instruction?
A: Financial Procedure
B: Accounting Procedures
C: Procedures relating to audit, losses and write-off
D: all the above

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13) Which is the part that consist of act that covering the following titles in local
government?
A: Part I: Act as preliminaries
B: Part II: Act as Discipline
C: Part III: Act as Termination in public interest
D: Part IV: Act as Surcharge

14) What are the act that designed to make provisions for the audit of the accounts of the
Federations, of the states and of certain other authorities and specified bodies subject to
audit by Auditor General??
A: Statutory Body Act 1980
B: Audit Act 1957
C: Financial Procedure Act 1957
D: none on the above

15) International Federation of Accountants (IFAC) has issued IPSAS 1 to IPSAS 21,
recommending accounting standards guidance for better decision making, financial
management and accountability by government. What is the title that contain in IPSAS 9?
A: Segment Reporting
B: Borrowing Costs
C: Revenue from exchange transactions
D: Property, Plant and Equipment

16) Public sector is ..

A. Agencies in the public services at the federal, state and the local government
levels.
B. All agencies that undertake activities considered to be the responsibility of the
government.
C. Federal agencies responsible for formulatingthe national financial and economics
policies.
D. Agencies that government of Malaysia controls directly through agencies such as
Khazanah.

17) Has authority over external affairs, defense, internal security, administration of justice,
federal citizenship, and finance, trade, shipping, communications, transportation,
education, and other matters as stated in the Ninth Schedule (List 1) of the Federal
Constitution refer to
A. State Government
B. State Statutory Bodies
C. Federal Government
D. Islamic Council of Malaysia

18) All is the component of public sector organization in Malaysia exclude

A. Local government, Town, District Councils & City Halls
B. Islamic Council of Government
C. Federal Statutory Bodies

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D. Government Managers and Executives

19) There are several differences between Public and Private Accounting
A. Customers and markets, Accountability, Rules regulations and standards.
B. Customers and markets, Accountability, rules regulations and standards,
employee and voter.
C. Periodicity, Customers and markets, rules regulations and standards.
D. Rules regulations and standards, Periodicity, Customers and markets,
Accountability.

20). There are seven users of public sector accounting information. They are responsible to
ensure that public monies are properly spent. Besides they are also accountable to check the
level of compliance with government’s rules, regulations and Policies refer to what user?
A. Government Managers and Executives
B. Investors and vendors
C. Government Auditors an Oversight Committees
D. Taxpayers

Part I Act as preliminaries

Part II Discipline
Part III Termination in the public interest
Part IV Surcharge

20) Information above refer to the …

A. Audit Act 1957
B. Financial Procedure Act 1957
C. Local Government
D. Statutory Body Act 1980

21) National government, regional government (state, provincial, territorial), local

government, related governmental agencies and the constituencies they serve is refer to
definition of ___ by IFAC.
A. Public sector
B. Local and International Standards
C. Local Government
D. Public places

I. No taxation imposed unless authorized by law

II. Consolidated funds
III. Expenditure charged on federal consolidated fund
IV. Annual financial statement

22) Information above is refer to an article 96 - 99 of Federal Constitution 1957. Arrange

information from article 96 – 99 follow the right flow state in federal constitution 1957.

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A. I, III, IV, II
B. I, III, II, IV
C. II, I, III, IV
D. I, II, III, IV

23) Focuses on the control and management of public finances such as handling of
consolidated funds and other related funds, custody and investment of moneys, payment
of funds, refunds, estimates and virements, yearly accounts, write-offs and matters
relating to surcharge is refer to ___ of Financial Procedure Act 1957.
A. Part I
B. Part II
C. Part III
D. Part IV

24) There is benefits of International Public Sector Accounting Standard (IPSASs) exclude
A. To improve public sector financial management and accountability.
B. To provide for the control and management of the public finances of
Malaysia
C. To provide advice on financial reporting, accounting and auditing issues in
the public sector.
D. Recommended that the standards are adopted internationally.

The advice of Prime Minister

The position of Islamic Religious
The supreme commander of Malaysian armed forces

25) Information above is refer to

A. Executive
B. Yang DipertuanAgong
C. Legislative
D. Judiciary

Ensure sustained and continuous economic growth

Strengthen national competitiveness and economic resilience
Ensure effective and prudent financial management

26) Information above is refer to an objective of in Central Agencies.

A. The Economic Planning Unit (EPU)
B. The treasury
C. The Malaysian Administrative Modernisation and Management Planning Unit
(MAMPU)
D. The Public Service Department (PSD)

27) There are mission of The Public Service Department (PSD) exclude

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A. Enhance capability through restructuring and strengthening the organization

and development of human capital.
B. Develop quality , highly competent and innovative personnel.
C. Be the main advisor to the government in public service human resource and
management.
D. Manage the country’s socio-economic development in a strategic and
sustainable manner.

28) Example of government Machineries in Ministry of Agriculture and Agro-Based Industry

in statutory bodies is
A. National agricultural training council (NATC)
B. Agri-food Business Development Center (BDC)
C. Federal Agricultural Marketing Authority (FAMA)
D. Suruhanjaya Koperasi Malaysia (SKM)

29) Government linked companies (GLC) is defined as

A. Company that government of Malaysia controls directly through agencies
such as Khazanah.
B. Company that government responsibility for coordinating development
projects as well as development of human resources.
C. Company that government entrusted to execute some major projects for the
country’s development.
D. Company that government responsible for formulating the national financial
and economics policies.

30) There are several differences between public and private sector. Which are NOT
A) Legislators
B) Customer and markets
C) Accountability
D) Rules, regulations and standards

31) Which following are NOT official duties for Yang di-Pertuan Agong?
A) Advice of the Prime Minister
B) Hold the position of Islamic Religious Head
C) The Supreme Commander of the Malaysian Armed Forces
D) The power to formulate policies

32) What power of executive?

A) Power to formulate policies, which will be implemented by the governmental
administrative agencies
B) Power to make new law or to amend or repeal existent law related to public
money
C) Power of the political system of Malaysia is divided between the federal and the
state legislatures
D) Power to protect government

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33) How many sit was consisting of the senate or Dewan Negara?
A) 44
B) 70
C) 77
D) 80

34) The Malaysian legal system is based on English common law and most of the laws and the
constitution are adapted from Indian law. Which there are NOT
A) Federal court
B) Court of Appeals
C) High Court
D) Justice

35) Article 132 of the Constitution of Malaysia stipulates that the Public Service consist of
A) The joint Public Services
B) Internal security
C) Federal citizenship
D) Finance

36) What a vision of the Treasury?

A) Ensure sustained and continuous economic growth
B) To be the Premier Agency Responsible for the Management of the Nation’s
Finance and economy
C) To formulate policies and administer Government housing loans for public sector
employees
D) To manage the acquisition and disbursement of federal Government loans from
domestic and external sources

37) What a mission of the Malaysian Administrative Modernisation and Management

Planning Unit (MAMPU)?
A) Leader in driving public service modernisation towards distinction by 2015
B) To manage the country’s socio-economic development in a strategic and
sustainable manner
C) Spearheading Public Sector transformation to improve the well-being of the
people and to strengthen national competitiveness through innovative and
strategic enhancement of organisation management and ICT
D) Improve systems and work processes by leveraging on ICT

38) What a Federal Constitution 1957?

A) Considered the supreme law of the nation as it distributes power of governance in
accordance with the practice of Parliamentary Democracy
B) Special attention on the financial aspects of the governments as reflected by the
financial provisions
C) To make provisions for the audit of the accounts of the Federations
D) Covers the state financial and accounting procedures

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39) Financial Procedure Act 1957 refers to an act design to provide for the control and
management of the public finances of Malaysia. Which are NOT
A) Part 1 – act as preliminary or introduction to the whole Act
B) Part 2 – clearly spells out the duties of accounting offices and matters related to
bank account
C) Part 3 – focuses on the control and management of public finances
D) Part 4 – conduct of business by local Authorities

40) There are standards used for public sector accounting in Malaysia, called as
A) International Public Sector Accounting Standard (IPSASs)
B) Treasury Instruction
C) Government Accounting Standards ( Piawaian Perakaunan Kerajaan – PPK )
D) Audit Act 1957

41) Which a NOT the benefit of International Public Sector Accounting Standard (IPSASs)?
A) Have been developed specifically for the public sector and it is also recommended that
the standards are adopted internationally
B) The Public Sector Committee (PSC) of IFAC is a standing committee of the Council of
the IFAC formed to, on a coordinated worldwide basis
C) The key benchmark, guidance, and contain individual requirements on financial
reporting and accounting in the public sector
D) Base are based on studies on best practices and most effective methods for dealing
with the issues

SECTION B

1. Based on the google search find the information regarding the following GLC and find
the role of the GLC, who is the CEO & Chairman, Missions and Visions
a. Khazanah Nasional Bhd
b. Kumpulan Wang Simpanan Pekerja (KWSP)
c. Permodalan Nasional Bhd (PNB)
d. Lembaga Tabung Angkatan Tenterea (LTAT)
e. Lembaga Tabung Haji

2. Based on the google search list 5 issues or problems faced by the related to the above
GLC companies listed mention above.

3. Write an essay on any topics related to Public Sectors (Max paragraph 7 each paragraph 5
-6 lines)

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SECTION C
1. Find the word in the puzzle below related to public sectors

N E C I M A L S I Q L I C N U O C T T O
A A I I Y I E Y O Y B U D G E T I N G R
T A M I N I S T E R I P U P P H O H T T
L R R G C U P P T N E M A I L R A W G A
U A D N U R E G U L A T O R Y A B O N Y
S F E D E R A L Y S T A T E Y Y W K K K
F G D K K N O I T C I D S I R U J G K A
A D D T K K P T A X P A Y E R S G K G R
F D T R E A S U R Y G C I R C U L A R S

2. Fill in the Jigsaw Puzzle

1. Malaysia Practices ______________ Democracy which rakyat can express their
opinion
2. One of the important element after Accounting & Auditing
3. A concept relates to flow of funds during budgetary period and budget comparison
until 31 January of the following year
4. There were two ______________ Machinery, one in federal the other in the state
5. The State Executive Council headed by Chief ________________________
6. Yang di Pertuan Agong hold office for 5 years after election made by the Conference
of Ruler this is known as Constitution ________________________
7. The federal administrative machinery were headed by Federal ______________
8. The periodic concept implement in. This concept only applies when preparing the
___________Revenue Account only.
9. The King of Malaysia Know as _____________
10. The ______________protect the public sector from misleading the public money.
11. The Ninth Schedule (List 1) can be find in __________________
12. The Government ________ are second highest agencies responsible for implementing
government policies
13. Islamic _____________is matters pertaining to the Muslim religion and Malay custom

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10
R
12
E P A R T M E N T
D

P
9
G D

13
U I
C

O L P
8 7
U A E C S

N T R O E
11
O N S T I T U T I O N C
C

I O U S R
2
B L N A O E

U S N L T

D I A

G D R
3 6
E P M O N A RC H Y
T E T
1
A R L I M E N T A R Y E
P
N I D
5
G O
M
4
A D M I N I S T R A T I V E

I N
C I

I S
T T

Y E

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SECTION D
1. Write 1 paragraph with maximum 10 line explaining the diagram below
a. Federal Malaysian

2. Write 2 paragraph with maximum 8 line defining the table below

a. Comparison between Budgeting Practice in Malaysia

Characteristic of Traditional Program & Modified Budgeting

Budgeting Budgeting (TB) Performance Systems (MBS)
Budgeting Systems
(PPBS)
Focus of revenue & Related to activities Related to goals/ Related to goals/
expenditures objectives objectives
System features Focus on control Focus on input- Focus on input-
output output-impact
Budget preparation Detailed line item - Standard objects of - Top-down
format expenditure (time approach through the
items) within setting of fiscal
program & limits.
activities. - Input classification
- Bottom up is by general objects
approach of expenditure.

Budget examination Input focused Input focused Output focused

Budget control Input focused Input focused Output focused
minimal for maximum for maximum for
flexibility manager flexibility manager flexibility manager
Extent of Fiduciary Fiduciary Efficiency &
accountability compliance with compliance with effectiveness besides
rules & regulations rules & regulations fiduciary
accountability
Extent of delegation Decision is Limited virement Virements across all
centralized only between two of categories of
the 5 general objects expenditure within
of expenditure and across activities
within an activity. in the same program.
Accountability For input For output/ outcome For output/ outcome

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b. Write 1 paragraph maximum 10 line explaining the budget proses below

GOVERNMENT FEDERAL TREASURY (BUDGET PARLIAMENT

MANAGEMENT DIVISION)

Agencies prepare and submit JANUARY

New Year estimates
Call circular for New Year
Estimates

MARCH

Receive submissions & BRO

makes individuals study

APRIL

Preliminary hearing

MAY – JULY

Budget - hearing

AUGUST – SEPTEMBER

Approval of New Year estimates

by the Ministry of Finance and
Cabinet

SEPT – DEC
SEPTEMBER
Parliaments
Budget document printed &
debates & approves
submitted to Parliament
New Year budget

END OF DECEMBER
Budget execution by agencies
Minister of Finance issues
warrant for expenditure

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