Examkin

Question

Difficulty: MediumStructure of Government Funds

In public sector accounting, which government fund is credited with all general statutory receipts, direct taxes, customs duties, and mining royalties, and serves as the principal account from which recurrent operational expenditures are paid?

  1. Consolidated Revenue FundAnswer
  2. B
    Capital Development Fund
  3. C
    Contingencies Fund
  4. D
    Special Fund

Answer

Consolidated Revenue Fund
The Consolidated Revenue Fund is the main revenue account of the government into which all statutory revenues, taxes, duties, and royalties are deposited, and from which recurrent operational expenses are drawn.

Step-by-Step Solution

1
Analyze the primary functions of government funds in public sector accounting.
The Consolidated Revenue Fund (CRF) is established as the central account for receiving all revenues raised or collected by the government.
Constitutional and financial regulations stipulate that all statutory revenues such as taxes, duties, and royalties flow into the Consolidated Revenue Fund unless specifically directed into another fund by law.

Key Concept

Classification and purpose of the Consolidated Revenue Fund
Rate this question

Topics

Structure of Government Funds

More questions from this topic