Public Sector Account - Sources of Government Revenue - SS3 Accounting Past Questions and Answers - page 1
What is the most common source of government revenue?
Taxes
Fees and Charges
Fines and Penalties
Borrowing
Which of the following is an example of a fee?
Income tax
Sales tax
Property tax
Building permit fee
What is the purpose of fines and penalties?
To generate revenue for the government
To punish individuals or businesses for violating laws or regulations
To finance capital projects
To provide public goods and services
What is borrowing?
Payments made by individuals or businesses for specific government services
Charges imposed on individuals or businesses for violating laws or regulations
Government-owned businesses that generate revenue
Governments borrowing funds to finance their operations and capital projects
What are natural resources?
Government-owned businesses that generate revenue
Charges imposed on individuals or businesses for violating laws or regulations
Payments made by individuals or businesses for specific government services
Resources such as oil, gas, and minerals that governments may extract and sell to generate revenue
What is the purpose of grants and aid as a source of government revenue?
Grants and aid are a form of financial assistance that governments receive from other governments or international organizations to support their operations or capital projects.
How do state-owned enterprises generate revenue for the government?
State-owned enterprises are businesses that are owned and operated by the government. They generate revenue by providing goods and services to consumers and businesses, and the profits generated are returned to the government as revenue.