NYC DCAS Revenue Examiner
Examination Exam Practice Questions
And Correct Answers (Verified Answers)
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1. A Revenue Examiner reviewing a city agency’s quarterly financial
report notices that reported collections significantly exceed projected
estimates without a clear explanation. What is the most appropriate
initial action?
A. Immediately report fraud to external law enforcement
B. Adjust the projections upward to match the new figures
C. Verify supporting documentation and revenue sources for accuracy
D. Disregard the discrepancy if totals balance
Correct Answer: C. The examiner must first verify the supporting records
and revenue documentation to determine whether the variance is valid or
an error before escalating or adjusting figures.
2. When auditing municipal revenue accounts, which principle ensures
that revenues are recorded in the correct accounting period?
,A. Materiality principle
B. Matching principle
C. Revenue recognition principle
D. Cost principle
Correct Answer: C. The revenue recognition principle ensures income is
recorded in the period it is earned, not necessarily when cash is received.
3. A department reports cash receipts without issuing official receipt
records. What is the primary risk?
A. Increased tax liability
B. Loss of internal control and potential misappropriation
C. Overstatement of liabilities
D. Improved audit trail accuracy
Correct Answer: B. The absence of receipts weakens internal controls and
increases the risk of theft or misstatement.
4. Which document is most critical for verifying cash revenue deposits in
a city agency?
A. Employee attendance logs
B. Bank deposit slips and reconciliation reports
C. Procurement contracts
D. Vendor invoices
Correct Answer: B. Bank deposit slips and reconciliation reports provide
direct evidence of cash received and deposited.
, 5. A discrepancy is found between departmental revenue reports and
central accounting records. What should the examiner do first?
A. Notify the media
B. Adjust central records immediately
C. Conduct a reconciliation of both datasets
D. Suspend all departmental operations
Correct Answer: C. A reconciliation helps identify the source of discrepancy
before corrective action is taken.
6. Which internal control best prevents unauthorized alteration of
revenue records?
A. Manual filing systems
B. Segregation of duties
C. Employee overtime tracking
D. Budget forecasting
Correct Answer: B. Segregation of duties reduces risk by separating
responsibilities among different individuals.
7. What is the primary purpose of revenue forecasting in municipal
finance?
A. To eliminate audits
B. To determine employee salaries
C. To estimate expected future income for budgeting
D. To replace accounting records
Correct Answer: C. Revenue forecasting provides estimated income used for
planning and budgeting purposes.
Examination Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationale 2026 Q&A| Instant
Download Pdf
1. A Revenue Examiner reviewing a city agency’s quarterly financial
report notices that reported collections significantly exceed projected
estimates without a clear explanation. What is the most appropriate
initial action?
A. Immediately report fraud to external law enforcement
B. Adjust the projections upward to match the new figures
C. Verify supporting documentation and revenue sources for accuracy
D. Disregard the discrepancy if totals balance
Correct Answer: C. The examiner must first verify the supporting records
and revenue documentation to determine whether the variance is valid or
an error before escalating or adjusting figures.
2. When auditing municipal revenue accounts, which principle ensures
that revenues are recorded in the correct accounting period?
,A. Materiality principle
B. Matching principle
C. Revenue recognition principle
D. Cost principle
Correct Answer: C. The revenue recognition principle ensures income is
recorded in the period it is earned, not necessarily when cash is received.
3. A department reports cash receipts without issuing official receipt
records. What is the primary risk?
A. Increased tax liability
B. Loss of internal control and potential misappropriation
C. Overstatement of liabilities
D. Improved audit trail accuracy
Correct Answer: B. The absence of receipts weakens internal controls and
increases the risk of theft or misstatement.
4. Which document is most critical for verifying cash revenue deposits in
a city agency?
A. Employee attendance logs
B. Bank deposit slips and reconciliation reports
C. Procurement contracts
D. Vendor invoices
Correct Answer: B. Bank deposit slips and reconciliation reports provide
direct evidence of cash received and deposited.
, 5. A discrepancy is found between departmental revenue reports and
central accounting records. What should the examiner do first?
A. Notify the media
B. Adjust central records immediately
C. Conduct a reconciliation of both datasets
D. Suspend all departmental operations
Correct Answer: C. A reconciliation helps identify the source of discrepancy
before corrective action is taken.
6. Which internal control best prevents unauthorized alteration of
revenue records?
A. Manual filing systems
B. Segregation of duties
C. Employee overtime tracking
D. Budget forecasting
Correct Answer: B. Segregation of duties reduces risk by separating
responsibilities among different individuals.
7. What is the primary purpose of revenue forecasting in municipal
finance?
A. To eliminate audits
B. To determine employee salaries
C. To estimate expected future income for budgeting
D. To replace accounting records
Correct Answer: C. Revenue forecasting provides estimated income used for
planning and budgeting purposes.
