ANSWER THE FF:

Copy the document and save a separate file with your answers.

(Only two questions since you’ve answered the other one earlier)

1. Does the government as a whole deliberately enter into a contractual agreement where it
would recognize financial asset and/or financial liability? Provide examples to your
answer.
2. In the accounting for cash shortage/overage, in your own words, what is the rationale in
the provision that “any cash overage that cannot be satisfactorily explained to the auditor
is forfeited in the favor of the government.” Explain your answer.