This registry shall be maintained by Appropriation Act, by Fund cluster, by Major Fund Output or
program/activity/project for personnel services.
Correct answer: Registry of Allotments, Obligations and Disbursement - Personnel services
Score: 1 out of 1 Yes
Question 2
The DBM, Dept of Finance, Bureau of Treasury and COA are collectively responsible for the Unified
Accounts Code STructure (UACS). Who is responsible for the consistency of account classification and
coding standards with the Government Finance Statistics?
Correct answer: Dept of Finance - Bureau of Treasury
Score: 0 out of 1 No
Question 3
The Bureau of Treasury (BTR) is responsible for
Correct answer: receiving and keeping national funds and managing and controlling the
disbursements thereof
Score: 1 out of 1 Yes
Question 4
The Commission on Audit (COA) is responsible for
Correct answer: promulgating accounting and auditing rules and regulations.
Score: 1 out of 1 Yes
Question 5
The DBM, Department of Finance, Bureau of Treasury, and Commission on Audit are collectively for
the Unified Code Structure (UACS). Who is responsible for the validation and assignment of new
codes for funding source, organization, sub-object codes for expenditure items?
Correct answer: DBM
Score: 1 out of 1 Yes
Question 6
Its function is to assist the Commission on Audit in formulating and implementing Philippine Public
Sector Accounting Standards
Correct answer: Public Sector Accounting Standards Board
Score: 1 out of 1 Yes
Question 7
In the financial reporting system of the national government, to which of the following shall an
entity reconciles its cash records?
Correct answer: Bureau of Treasury
Score: 0 out of 1 No
Question 8
This registry shall be maintained by fund cluster by the Budget Division/Unit of each government
entity to ensure that allotment releases within the authorized appropriation
Correct answer: Registry of Appropriations and Allotments
Score: 1 out of 1 Yes
Question 9
Government resources must be utilized efficiently and effectively in accordance with the law.
According to PD no. 1445 , who is directly responsible in in implementing this policy?
Correct answer: The head of the government agency
Question 1
Which of the following expenditures is not shown in the statement of financial performance
Correct answer: CO
Score: 1 out of 1 Yes
Question 2
A check disbursement is normally recorded as a credit to the "Cash modified disbursement system
(MDS), Regular" account
Correct answer: True
Score: 1 out of 1 Yes
Question 3
The GAM of NGAS requires the Collecting Officer to issue an official receipt to acknowledge the
receipt of the Notice of Cash Allocation.
Correct answer: False
Score: 1 out of 1 Yes
Question 4
The 8-digit Revised Chart of Accounts (RCA) Code for the account “Subsidy from National
Government” starts with number
Correct answer: 4
Score: 1 out of 1 Yes
Question 5
The 8-digit Revised Chart of Accounts (RCA) Code for expenses starts with number
Correct answer: 5
Score: 1 out of 1 Yes
Question 6
The receipt of allotment is recorded in the
Correct answer: RAPAL and RAOD
Score: 1 out of 1 Yes
Question 7
Entity A, a government entity, made disbursements for travelling expenses of its personnel. These
expenditures are most like classified as
Correct answer: MOOE
Score: 1 out of 1 Yes
Question 8
The types of expenditure pertains to all types of employee benefits
Correct answer: PS
Score: 1 out of 1 Yes
Question 9
The NCA is recorded in the
Correct answer: d. a and b
Score: 1 out of 1 Yes
Question 10
Which of the following is (are) affected when a government entity makes disbursements to settle
recorded obligations?
Correct answer: All of these
Score: 1 out of 1 Yes
Question 11
Separate accounting records and budget registries are maintained for each fund cluster.
Correct answer: True
Score: 1 out of 1 Yes
Question 12
Which of the following accounts is credited when a government entity remits taxes withheld to the
BIR?
Correct answer: Cash - Tax Remittance Advice
Score: 1 out of 1 Yes
Question 13
Government entities and business entities use the term "obligation' or the phrase " incurrence of
obligation" similarly
Correct answer: False
Score: 1 out of 1 Yes
Question 14
At the end of each year, an adjustment is made to revert any unused NCA of a government entity.
Correct answer: True
Score: 1 out of 1 Yes
Question 15
Which of the following records is technically not considered an accounting book?
Correct answer: Registry of Appropriations and Allotmetns
Score: 1 out of 1 Yes
Question 16
Which of the following is (are) affected when a government entity incurs obligations?
Correct answer: ORS and RAOD
Score: 1 out of 1 Yes
Question 17
According to the GAM for NGAs, the Registries are (choose the incorrect statement)
Correct answer: maintained by the accounting unit of a government entity
Score: 1 out of 1 Yes
Question 18
Expenditures to acquire long-term assets are most likely classified as
Correct answer: CO
Score: 1 out of 1 Yes
Question 19
This is used to recognized the constructive remittance of taxes withheld to the BIR or customs duties
withheld.
Correct answer: Tax Remittance Advice
Score: 1 out of 1 Yes
Question 20
Technically, only the Journals and Ledgers are considered accounting records; the Registries are
budget records
Correct answer: True
Score: 1 out of 1 Yes
Question 21
Which of the following is not a form of disbursement authority?
Correct answer: Allotment
Score: 1 out of 1 Yes
Question 22
The various registries maintained by government entities primarily serve as internal control for
controlling and monitoring the conformance of actual results with the approved budget
Correct answer: True
Score: 0 out of 1 No
Question 23
The remittance of amounts withheld to the other government agencies, such as BIR, BOC, GSIS,
Philhealth and Pag-ibig, is done through the TRA.
Correct answer: False
Score: 1 out of 1 Yes
Question 24
The entry to record the reversion of unused NCA at the end of the period is the exact opposite of the
entry used to record the receipt of NCA.
Correct answer: True
Score: 1 out of 1 Yes
Question 25
Both ORS and RAOD are updated each time an obligation is incurred, a payable is recorded for the
obligation incurred, and disbursements are made to settle the recorded payables.
Correct answer: True
Score: 1 out of 1
Disbursement authority is recorded in the books of accounts.
Correct answer: True
Score: 1 out of 1 Yes
Question 2
Obligations recorded in the registries but not yet in the accounting records are referred to as
Correct answer: Not yet due and demandable
Score: 1 out of 1 Yes
Question 3
Which of the following is not a form of disbursement authority?
Correct answer: Allotment
Score: 1 out of 1 Yes
Question 4
Government funds shall only be spent in pursuance of an appropriation made by law.
Correct answer: True
Score: 1 out of 1 Yes
Question 5
After the budget call, budget hearings are made whereby agencies defend their proposed programs
and expenditures for the upcoming year before the
Correct answer: DBM
Score: 0 out of 1 No
Question 6
It is the function and activities necessary for the performance of a major purpose for which a
government entity is established
Correct answer: Program
Score: 1 out of 1 Yes
Question 7
Which of the following is correct regarding zero-based budgeting?
Correct answer: The current year’s budget is formulated without regard to the previous year’s
budget.
Score: 0 out of 1 No
Question 8
The GAM for NGAS is promulgated by the Philippine Congress under the authority conferred to it
under the Philippine Constitution.
Correct answer: False
Score: 0 out of 1 No
Question 9
The GAM for NGAS is promulgated primarily to harmonize government accounting standards with
the US GAAP.
Correct answer: False
Score: 0 out of 1 No
Question 10
Taxes are the main sources of funds of the government.
Correct answer: True
Score: 1 out of 1 Yes
Question 11
A government agency shall maintain which of the following registries for allotments and obligations?
Correct answer: All of the choices
Score: 1 out of 1 Yes
Question 12
It is a part, segment, unit or function of a government agency, headed by a manager, who is
accountable for a specified set of activities.
Correct answer: Responsibility Accounting
Score: 0 out of 1 No
Question 13
It refers to the commitment by a government agency arising from an act of a duly authorized official
that binds the government to the immediate or eventual payments of a sum of money.
Correct answer: Obligation
Score: 1 out of 1 Yes
Question 14
Which of the following would most likely comes last in the budget process?
Correct answer: Performance review
Score: 0 out of 1 No
Question 15
Which of the following approaches to budget preparation provides the best internal control?
Correct answer: Zero-based budgeting
Score: 1 out of 1 Yes
Question 16
Allotments are recorded in the RAPAL and Registries of Allotments, Obligations and Disbursements.
Correct answer: True
Score: 1 out of 1 Yes
Question 17
Which of the following records is technically not considered an accounting book?
Correct answer: Registry of Appropriations and Allotments
Score: 1 out of 1 Yes
Question 18
This is used to recognize the constructive remittance of taxes withheld from BIR or customs duties
Correct answer: Tax Remittance Advice
Score: 1 out of 1 Yes
Question 19
The senate prepares the General Appropriation Bill.
Correct answer: False
Score: 1 out of 1 Yes
Question 20
Appropriation is also called obligational authority.
Correct answer: False
Score: 1 out of 1 Yes
Question 21
Appropriations, allotments, and incurrence of obligations are recorded only in the registries.
Correct answer: True
Score: 1 out of 1 Yes
Question 22
After deliberations in both houses in the Congress and finished, a committee is formed to harmonize
any conflict between the Representatives and Senate versions of the General Appropriations Bill. This
committee is called the
Correct answer: Bicameral Conference Committee
Score: 1 out of 1 Yes
Question 23
A government entity must first received an allotment before it can incur obligations.
Correct answer: True
Score: 1 out of 1 Yes
Question 24
The GAM for NGAs is promulgated by the
Correct answer: Commission on audit
Score: 1 out of 1 Yes
Question 25
It is an authorization made by law or other legislative enactment, directing payments of goods and
services out government funds under specified condition or for specific purposes.
Correct answer: Appropriation
Score: 1 out of 1 Yes
Question 26
The president shall submit the proposed budget to the Congress within 60 days from the opening of
the every regular session.
Correct answer: False
Score: 1 out of 1 Yes
Question 27
A unique financial reporting requirement of government entities is the use of fund cluster
accounting. Under fund cluster accounting. Under fund cluster accounting, separate books and
reports are prepared for each type of fund held by a government entity.
Correct answer: True
Score: 1 out of 1 Yes
Question 28
After the incurrence of obligations, the next step in the budget cycle is
Correct answer: Disbursement authority
Score: 0 out of 1 No
Question 29
In government accounting, which of the following is a capital outlay?
Correct answer: Land improvement
Score: 1 out of 1 Yes
Question 30
All disbursements of government entities must be in conformance with the law and the
Correct answer: National budget
Score: 0 out of 1 No
Question 31
Which of the following statements best differentiates the government accounting process from the
accounting process of a business entity?
Correct answer: The government accounting process is similar to that of a business entity, except that
it incorporates budgetary controls, such as recording in the budget registries and preparing periodic
budget accountability reports.
Score: 1 out of 1 Yes
Question 32
The DBM, Dept of Finance, Bureau of Treasury and COA are collectively responsible for the Unified
Accounts Code Structure (UACS). Who is responsible for the validation and assignment of new codes
for funding source, organization, sub-object codes for expenditure items?
Correct answer: DBM
Score: 1 out of 1 Yes
Question 33
Entity A, a government entity, receives notice that out of its ₱10B approved budget for the year,
Entity A can incur obligations up to ₱4B in the first quarter. This event can be described as
Correct answer: Allotment
Score: 0 out of 1 No
Question 34
This type of budget is prepared in such a way that estimated revenues exceed estimated
expenditures
Correct answer: Balanced budget
Score: 0 out of 1 No
Question 35
This registry shall be maintained by Appropriation Act, by Fund Cluster by Major Fund Output or
Progra/Activity/Project for personal services.
Correct answer: Registry of allotments, obligations and disbursements - personnel services
Score: 1 out of 1 Yes
Question 36
This approach to budgeting requires the justification of items in the budget irrespective of whether
they are new or carried over from the previous year.
Correct answer: Zero-based budgeting
Score: 1 out of 1 Yes
Question 37
An entity can incur obligations after receiving notice of appropriation but before receiving the
allotment.
Correct answer: False
Score: 1 out of 1 Yes
Question 38
Which of the following would most likely comes first in the budget process?
Correct answer: Budget Call from the DBM
Score: 1 out of 1 Yes
Question 39
Each government agency shall maintain accounting books and budget registries which are reconciled
with the cash records of the Bureau of Treasury and the budget records of the COA and DBM.
Correct answer: True
Score: 1 out of 1 Yes
Question 40
Obligations incurred are recorded in the RAOD and RAPAL.
Correct answer: False
Score: 1 out of 1 Yes
Question 41
Focus on specific expenditures such as salaries and wages, travel expenses, freight and etc
Correct answer: Line item budget
Score: 1 out of 1 Yes
Question 42
The DBM, Dept of Finance, Bureau of Treasury and COA are collectively responsible for the Unified
Accounts Code Structure (UACS).Who is responsible for the consistency of accounts classification and
coding structure with the Revised Chart of Accounts?
Correct answer: COA
Score: 1 out of 1 Yes
Question 43
Unprogrammed funds are standby appropriations authorized by Congress in the annual GAA which
may be availed if new revenues are collected or realized from sources not originally considered in the
BESF.
Correct answer: True
Score: 1 out of 1 Yes
Question 44
At the end of each year, an adjustment is made to revert any unused NCA of a government entity.
Correct answer: True
Score: 1 out of 1 Yes
Question 45
The various registries maintained by government entities primarily serve as internal control for
controlling and monitoring the conformance of actual results with the approved budget
Correct answer: True
Score: 1 out of 1 Yes
Question 46
Its function is to assist the COA in formulating and implementing Philippine Public Sector Accounting
Standards
Correct answer: Public Sector Accounting Standards Board
Score: 1 out of 1 Yes
Question 47
It is the process of analyzing, recording, classifying, summarizing and communicating all transactions
involving the receipt and disposition of government funds and property and interpreting the results
thereof.
Correct answer: Government accounting
Score: 1 out of 1 Yes
Question 48
The DBM, Dept of Finance, Bureau of Treasury and COA are collectively responsible for the Unified
Accounts Code Structure (UACS). Who is responsible for the consistency of account classification and
coding standards with the Government Finance Statistics?
Correct answer: Dept of Finance - Bureau of Treasury
Score: 1 out of 1 Yes
Question 49
Authorizations programmed annually or for some other period prescribed by law which do not
require periodic action by Congress
Correct answer: automatic appropriations
Score: 1 out of 1 Yes
Question 50
When the proposed budget is not enacted before the fiscal year starts, the last year's GAA is
automatically reenacted.
Correct answer: True
Score: 1 out of 1 Yes
Question 51
Budget deliberations in the Congress start in the House of Senate.
Correct answer: False
Score: 1 out of 1 Yes
Question 52
Local Government Units include Government owned and controlled corporation.
Correct answer: False
Score: 1 out of 1 Yes
Question 53
What is the legal basis of the COA in promulgating the GAM for NGAs?
Correct answer: Constitution of the Republic of the Philippines
Score: 1 out of 1 Yes
Question 54
The various registries maintained by government entities are consideed as
Correct answer: Budget records
Score: 0 out of 1 No
Question 55
Conducted after the agencies submit their budget proposals.
Correct answer: budget hearing
Score: 0 out of 1 No
Question 56
An entity prepares its budget by simply rolling-over the budget in the previous year and adjusting
each line item by 10% increment to reflect inflation. This process is described as zero-based
budgeting.
Correct answer: False
Score: 0 out of 1 No
Question 57
The Commission on Audit (COA) is responsible for
Correct answer: promulgating accounting and auditing rules and regulations.
Score: 1 out of 1 Yes
Question 58
A budget, the basis of which are objects of expenditure
Correct answer: Line item budget
Score: 1 out of 1 Yes
Question 59
The budget preparation in the Philippines uses a "Top-Down" approach.
Correct answer: False
Score: 1 out of 1 Yes
Question 60
After the budget call from the DBM, the proposed budget of various agencies are submitted
immediately to the Office of the President for review.
Correct answer: False
Score: 1 out of 1 Yes
Question 61
Entity A, a government entity, receives authorization to disburse funds not to exceed ₱1B in a
specified period. This event can be described as
Correct answer: Notice of Cash Allocation
Score: 0 out of 1 No
Question 62
Which of the following statements is incorrect regarding the GAM for NGAs?
Correct answer: The DBM accounts for the cash, public debt and related transactions of the NG.
Score: 0 out of 1 No
Question 63
The principles in the GAM for NGAS are similar to the principles in the PFRSs.
Correct answer: True
Score: 0 out of 1 No
Question 64
Currently, the financial reporting of government entities is based on NGAs.
Correct answer: False
Score: 1 out of 1 Yes
Question 65
Other sources of funds of the government include fees, borrowings, and grants from other
governments and international bodies.
Correct answer: True
Score: 1 out of 1 Yes
Question 66
Which is not charged with the government accounting responsibility?
Correct answer: legislative dept
Score: 1 out of 1 Yes
Question 67
It refers to a fund which is available for any purpose other than those which other funds have been
designated to
Correct answer: General fund
Score: 1 out of 1 Yes
Question 68
After receiving its obligational authority amounting to ₱4B, Entity A enters into binding agreements
for the eventual payments of a total sum of ₱3B. The “₱3B” event can be described as
Correct answer: Obligation
Score: 0 out of 1 No
Question 69
Responsibility accounting greatly enhances budget accountability because managers are evaluated
only in terms of the costs or other variables that they control, and therefore, budget deviations can
be readily attributed to the managers accountable therefor.
Correct answer: True
Score: 1 out of 1 Yes
Question 70
The President’s explanation of the country’s fiscal policy and budget priorities is contained in a
document called the
Correct answer: President’s Budget Message
Score: 1 out of 1 Yes
Question 71
The president's budget contains National Expenditure Program.
Correct answer: True
Score: 0 out of 1 No
Question 72
The GAM for NGAs aims to update all of the following except
Correct answer: rules and regulations regarding the filing and payment of taxes by government
employees
Score: 1 out of 1 Yes
Question 73
The Philippine Public Sector Accounting Standards (PPSAS) shall be applied to the following, except:
Correct answer: Government Business Enterprises
Score: 1 out of 1 Yes
Question 74
Compared to the accounting for business entities, government accounting places greater emphasis
on the sources and utilization of government funds and the management's stewardship over
government resources
Correct answer: True
Score: 0 out of 1 No
Question 75
Once a government agency receives Notice of Cash Allocation (NCA), it shall debit “ Cash-National
Treasury, Modified Disbursement System” and credit
Correct answer: Subsidy Income- National Government
Score: 1 out of 1 Yes
Question 76
Non-cash Availment Authority is ssued by central office to its regional and operating units to pay
their operating expenses, purch of supplies, etc though issue of MDS check, ADA, etc
Correct answer: False
Score: 1 out of 1 Yes
Question 77
Both ORS and RAOD are updated each time an obligation is incurred, a payable is recorded for the
obligation incurred, and disbursements are made to settle the recorded payables.
Correct answer: True
Score: 1 out of 1 Yes
Question 78
This is an authorization issued by the Dept of Budget and Management to government agencies to
withdraw cash from National Treasury through the issuance of Modified Disbursement system checks
or other authorized method of disbursements
Correct answer: Notice of Cash allocation
Score: 0 out of 1 No
Question 79
The DBM and COA perform periodic reviews of the agencies' performance and budget accountability
and report to the president,
Correct answer: True
Score: 0 out of 1 No
Question 80
What is the role of the Bureau of Treasure in relation to government accounting responsibility?
Correct answer: To receive and keep national funds and manager or control disbursements thereof
Score: 1 out of 1
Which of the following inventories of a government entity would be subsequently measured at the
lower of cost and current replacement cost?
Correct answer: Books to be distributed to students in public schools
Score: 1 out of 1 Yes
Question 2
Which of the following government agencies will most likely be able to obtain a disbursement
authority in the form of Cash Disbursement Ceiling?
Correct answer: DFA
Score: 1 out of 1 Yes
Question 3
It refers to the authority issued by an agency’s Central Office to its regional and operating units to
cover the latter’s cash requirements.
Correct answer: Notice of Transfer of Allocation
Score: 1 out of 1 Yes
Question 4
It is a type of fund held by a government entity that is designated for special purposes
Correct answer: special fund
Score: 1 out of 1 Yes
Question 5
Which of the following may be included as cost of inventory?
Correct answer: cost of insurance while the goods are in transit
Score: 0 out of 1 No
Question 6
Government entities and business entities use the same accounting treatment for all of the following
except
Correct answer: remittance of taxes withheld to the BIR
Score: 0 out of 1 No
Question 7
The GAM for NGAs allows government entities to use periodic inventory system.
Correct answer: False
Score: 0 out of 1 No
Question 8
Certify the availability of allotment
Correct answer: Budget officer
Score: 1 out of 1 Yes
Question 9
The only valid modes of disbursement for a government entity are through cash or check.
Correct answer: False
Score: 1 out of 1 Yes
Question 10
The per transaction threshold for petty cash disbursement of a government entity is
Correct answer: P15,000
Score: 1 out of 1 Yes
Question 11
Which of the following is not a form of disbursement authority?
Correct answer: Allotment
Score: 0 out of 1 No
Question 12
A cash shortage of a government is most likely recorded as a
Correct answer: debit to receivable account
Score: 0 out of 1 No
Question 13
The entry in the books of a government agency with foreign service post to record the receipt of
disbursement authority called the Cash Disbursement Ceiling includes a
Correct answer: credit to subsidy from national government
Score: 0 out of 1 No
Question 14
Which of the following statements is correct?
Correct answer: Under the Advice to Debit Account (ADA) mode of disbursement, payments from a
government entity are directly credited to the bank accounts of the payees through bank transfers.
Score: 1 out of 1 Yes
Question 15
Biological assets and agricultural produce are recognized when all of the following are present
except
Correct answer: probable future event
Score: 0 out of 1 No
Question 16
Which of the following documents is prepared when issuing semi-expendable property to
end-users?
Correct answer: Inventory Custodian Slip
Score: 1 out of 1 Yes
Question 17
According to the GAM for NGAs, this shall be used for large numbers of items of inventory that are
ordinarily interchangeable
Correct answer: weighted average cost applied in a perpetual inventory system
Score: 0 out of 1 No
Question 18
Biological assets attached to land may not have a separate market but an active market may exist for
the combined assets as a package.
Correct answer: True
Score: 1 out of 1 Yes
Question 19
Disallowances are recorded in the books of accounts only when they become final and executory.
Correct answer: True
Score: 1 out of 1 Yes
Question 20
Entity A disburses a check chargeable against the Treasury Account. The journal entry to record the
disbursement involves a credit to which of the following accounts?
Correct answer: cash-modified disbursement system, regular
Score: 1 out of 1 Yes
Question 21
According to GAM for NGAS, all of the following criteria must be met before a government entity
recognizes revenue from the sale of goods, except
Correct answer: the stage of completion can be measured reliably
Score: 1 out of 1 Yes
Question 22
The taxable event for income tax is the passage of the time period for which the tax is levied.
Correct answer: False
Score: 1 out of 1 Yes
Question 23
Goods held for distribution are subsequently measured at the lower of cost and current replacement
cost.
Correct answer: True
Score: 1 out of 1 Yes
Question 24
Which of the following receipts of a government entity will give rise to the revenue recognition?
Correct answer: receipt of subsidy from the national government
Score: 0 out of 1 No
Question 25
Which of the following statements is incorrect regarding the accounting for biological assets?
Correct answer: PAS 41 and the GAM for NGAs have the same accounting treatment for consumable
and bearer plants
Score: 0 out of 1 No
Question 26
Which of the following is considered a biological asset?
Correct answer: Pig
Score: 1 out of 1 Yes
Question 27
Which of the following would result to an increase or decrease in the revenue reported by a
government entity in its financial performance?
Correct answer: the repayment of loan payable is forgiven
Score: 1 out of 1 Yes
Question 28
Under this inventory system, purchases, sales, and other transactions affecting inventory are
recorded in the “inventory” and “cost of sales” accounts, as appropriate. Moreover, stock cards and
stock ledgers are maintained.
Correct answer: Perpetual inventory system
Score: 1 out of 1 Yes
Question 29
Which of the following is true regarding disbursements through electronic MDS?
Correct answer: the disbursement is made through an online transaction
Score: 0 out of 1 No
Question 30
If the unadjusted balance of cash per bank statement is less than the adjusted balance and there no
other reconciling items or errors, the difference is most likely caused by
Correct answer: Deposits in transit
Score: 1 out of 1 Yes
Question 31
Generally, revenue from business income is recognized when fees are collected.
Correct answer: False
Score: 0 out of 1 No
Question 32
According to the GAM for NGAS, which of the following may never give rise to revenue for a
government entity?
Correct answer: services in kind
Score: 0 out of 1 No
Question 33
The agency wants to make disbursements online. Which of the following should the agency do so
that it can make valid disbursements online?
Correct answer: enrol with the eMDS of the land bank of the Philippines
Score: 1 out of 1 Yes
Question 34
Which of the following statements is correct?
Correct answer: The purchases account is used in a periodic inventory system but not in a perpetual
inventory system.
Score: 1 out of 1 Yes
Question 35
According to the GAM for NGAS, a biological asset is
Correct answer: a living animal and plant
Score: 1 out of 1 Yes
Question 36
Entity A acquires equipment from a supplier, on account. A lender settles the account of Entity A by
directly paying the supplier the proceeds of a loan payable that is recorded in the BTr’s books. This
mode of disbursement is called
Correct answer: Disbursement through Cash Disbursement Ceiling (CDC)
Score: 0 out of 1 No
Question 37
The subsequent changes in the fair value of an investment that is classified as available for sale are
recognized in
Correct answer: net assets or equity
Score: 0 out of 1 No
Question 38
Fines and penalties are recognized as income in the year they are collected
Correct answer: True
Score: 1 out of 1 Yes
Question 39
Entity A is a government hospital. Entity A would most likely recognize revenue from services
rendered to a patient
Correct answer: when the services are rendered and the patient is billed.
Score: 0 out of 1 No
Question 40
Which of the following is not used in processing disbursements?
Correct answer: Official Receipts
Score: 1 out of 1 Yes
Question 41
Relief and other welfare goods held for distribution are most likely to be classified by a government
entity as
Correct answer: Inventory Held for Distribution
Score: 1 out of 1 Yes
Question 42
Entity A, a government entity, purchases office supplies. Entity A would most likely record the
purchase
Correct answer: by debiting the Office Supplies Expense account
Score: 1 out of 1 Yes
Question 43
Taxes include fines and penalties.
Correct answer: False
Score: 1 out of 1 Yes
Question 44
Certify the availability of funds/cash and the completeness of the supporting documents
Correct answer: Chief accountant
Score: 0 out of 1 No
Question 45
The accounting division of a government entity uses this to record and monitor the movements and
balances of inventories
Correct answer: stock ledger card
Score: 1 out of 1 Yes
Question 46
It is a hedge of the exposure to changes in fair value of a recognized asset or liability or an
unrecognized firm commitment, or an identified portion of such an asset, liability or firm commitment,
that is attributable to a particular risk and could affect surplus or deficit.
Correct answer: Fair value hedge
Score: 1 out of 1 Yes
Question 47
When cash flows are deferred, the fair value of the consideration receivable is its present value.
Correct answer: True
Score: 1 out of 1 Yes
Question 48
Cash advances for payroll shall be liquidated within 5 days after the end of the pay period.
Correct answer: True
Score: 1 out of 1 Yes
Question 49
A government entity’s biological asset has fair values less costs to sell of ₱100,000 and ₱120,000 at
the beginning and end of the period, respectively. The year-end adjusting entry will most likely
include
Correct answer: a credit to unrealized gain of ₱20,000 to be recognized in surplus or deficit
Score: 0 out of 1 No
Question 50
The entry to record the receipt of a disbursement authority in the form of Cash Disbursement Ceiling
(CDC) is
Correct answer: DR: Cash-Constructive Income Remittance and CR: Subsidy from National
Government
Score: 0 out of 1 No
Question 51
Which of the following is considered an agricultural produce?
Correct answer: felled trees
Score: 1 out of 1 Yes
Question 52
This document is prepared when end users request for the issuance of inventories that are available
on stock
Correct answer: requisition and issue slip
Score: 0 out of 1 No
Question 53
According to GAM for NGAS, these refer to incremental costs that are directly attributable to the
acquisition, issue, or disposal of a financial instrument
Correct answer: transaction costs
Score: 1 out of 1 Yes
Question 54
The following are the account balances from Entity A’s statement of financial performance:
Inventory, January 1, 2020- ₱30,000
Purchases - P40,000
Purchase Returns and Allowances -P5,000
Purchase Discounts -P4,000
Freight-In-P5,000
Inventory, December 31, 2020 -15,000
Freight-Out - P6,000
Compute for the cost of sale in 2020
Correct answer: P51,000
Score: 1 out of 1 Yes
Question 55
The supply or property office of a government entity uses this to record and monitor the movements
and balances of inventories.
Correct answer: Stock Card
Score: 0 out of 1 No
Question 56
Entity A, a government entity, records purchases of items of inventory under the “Purchases”
account and freight-in under the “Freight-in” account. Which of the following statements is correct?
Correct answer: Entity A is not compliant with the requirements of GAM for NGAs.
Score: 0 out of 1 No
Question 57
Gifts, donations and goods in-kind with condition are recognized
Correct answer: initially as liability and recognized as revenue only when the condition is satisfied
Score: 0 out of 1 No
Question 58
Biological assets are initially and subsequently measured at fair value less cost to sell
Correct answer: True
Score: 1 out of 1 Yes
Question 59
Which of the following is non exchange transaction?
Correct answer: collection of taxes
Score: 0 out of 1 No
Question 60
All of the following give rise to the recognition of revenue from non-exchange transaction except
Correct answer: sale of goods
Score: 1 out of 1 Yes
Question 61
The agency acquires an equipment on account and settles the account by debiting Accounts payable
and crediting Subsidy from National Government. This mode of disbursement used by the agency is
most likely
Correct answer: non-cash availment authority
Score: 0 out of 1 No
Question 62
This consolidates all issued Requisition and Issue Slips (RIS) for inventories and is used in updating
both the Stock Card and the Stock Ledger Card
Correct answer: Report of Supplies and Materials Issued (RSMI)
Score: 1 out of 1 Yes
Question 63
The receipt of performance bond or a security deposit is credited to a
Correct answer: liability account
Score: 0 out of 1 No
Question 64
According to the GAM for NGAs, the very purpose of derivatives is
Correct answer: risk management
Score: 1 out of 1 Yes
Question 65
For government entities, inventories are assets (choose the incorrect one)
Correct answer: Used in the production of goods
Score: 1 out of 1 Yes
Question 66
Which of the following events or transactions would not lead to the recognition of the cost of
inventory as expense?
Correct answer: the inventory is consumed in the manufacturing process
Score: 0 out of 1 No
Question 67
Goods held for sale are subsequently measure at the lower of cost and NRV.
Correct answer: True
Score: 1 out of 1 Yes
Question 68
According to P.D. No. 1445, government personnel entrusted with the custody of government
resources (choose the incorrect statement)
Correct answer: are directly responsible to the public for the efficient and effective utilization
therefor.
Score: 1 out of 1 Yes
Question 69
The non-cash availment authority is a disbursement authority issued to government agencies with
foreign service posts
Correct answer: False
Score: 0 out of 1 No
Question 70
Which of the following is excluded from the amount of cash that is reported in the statement of
financial position of a government entity?
Correct answer: post-dated checks received
Score: 0 out of 1 No
Question 71
Which of the following items are classified by a government entity as Inventory Held for
Consumption?
Correct answer: Office supplies and similar materials.
Score: 1 out of 1 Yes
Question 72
Entity A, a government entity, grants a ₱10,000 cash advance for the travelling expenses of an
employee. The employee liquidates ₱8,000 of the cash advance and remits the excess cash advance
of ₱2,000. After recording the grant of cash advance and the liquidation thereof but before
adjustment for the collection of the excess cash advance, how much is the recorded expense in the
books of accounts?
Correct answer: P8,000
Score: 0 out of 1 No
Question 73
According to GAM for NGAs, a government entity's cash comprises all of the following except
Correct answer: cash equivalents
Score: 0 out of 1 No
Question 74
The purchase request form is prepared when end users request for the issuance of items of
inventory that are available on stocks
Correct answer: False
Score: 0 out of 1 No
Question 75
If the adjusted balance of cash is less than the unadjusted balance per books and there are no other
reconciling items or errors, the difference is most likely caused by
Correct answer: debit memo
Score: 0 out of 1 No
Question 76
Agricultural produce is measured at fair value less cost to sell only at the point of harvest.
Correct answer: True
Score: 1 out of 1 Yes
Question 77
No journal entry is prepared when a disbursement is made out of petty cash fund.
Correct answer: True
Score: 1 out of 1 Yes
Question 78
Which of the following statements is incorrect regarding the accounting for unreleased checks by a
government entity?
Correct answer: Unreleased checks are physically cancelled.
Score: 0 out of 1 No
Question 79
According to the GAM for NGAs, all financial assets are initially measured at fair value.
Correct answer: False
Score: 1 out of 1 Yes
Question 80
Revenue from exchange transactions are measured at the fair value of consideration received.
Correct answer: True
Score: 1 out of 1