ACP313 (Government Accounting)
Short Assessment
1. These are transactions in which one entity receives assets or services or has
liabilities extinguished and directly gives approximately equal value to another
entity in exchange.
Answer: Exchange Transactions
2. When rendering services and the outcome cannot be estimated reliably, revenue
is recognized only to the extent of?
Answer: Recoverable cost
3. Gifts, Donations and Goods in-Kind with condition, are initially recognized as
liability and recognized as revenue only when the condition is satisfied.
Answer: True
4. The fair value of debt forgiven is recognized as revenue
Answer: False
5. The transfers made according to the provision of a deceased person’s will is
recognized as revenue measured at fair value, if asset recognition criteria are met.
Answer: True
6. Interest is recognized on a _______________ basis that takes into account the
effective yield of asset.
Answer: time proportion
7. Revenue from rendering of services is recognized on a __________ basis over the
contract term.
Answer: straight-line
8. When an amount already recognized as revenue becomes uncollectible, it is
recognized as
Answer: expense
9. These are transactions in which an entity either receives value from another entity
without directly giving approximately equal value in exchange.
Answer: Non-exchange transactions
10. Actual Cash collections from all sources during a period.
Answer: Receipts
11. Revenue includes all funds received by the government from taxes, grants, aids
and borrowings;
Answer: False
12. No payment of any nature shall be received by a collecting officer without
immediately issuing an official receipt in acknowledgment thereof.
Answer: True
13. The Treasurer of the Philippines and all AGDB shall acknowledge receipt of all
funds received by them, the acknowledgement bearing the date of actual
remittance or deposit and indicating from whom and on what account it was
received.
Answer: True
14. Revenue is recognized by reference to the stage of completion if the outcome of
the transaction can be estimated reliably
Answer: True
15. Royalties is recognized as revenue immediately without regards to the substance
of the relevant agreement.
Answer: False
16. Dividends are recognized when the entity’s right to receive payment is established.
Answer: True
17. When cash flows are deferred, the fair value of the consideration is the present
value of the consideration receivable.
Answer: True
18. Revenue from non exchange transactions are measured at fair value of the
consideration received or receivable.
Answer: False
19. Revenue is recognized when exchanging similar goods and services.
Answer: False
20. Revenue from exchange transactions are derived mostly from taxes, fines and
penalties, gifts, donations and goods in kind.
Answer: False
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