Q1- BUDGET PROCESS
1.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
True
2.After deliberations in both houses in the Congress are
finished, a committee is formed to harmonize any conflicts
between the Representatives and Senate versions of the
General Appropriations Bill. This committee is called the
Bicameral Conference Committee
3.Arrange the following steps according to the sequence that
they appear in the budget cycle. I. Allotment II. Bicameral
deliberations III. Budget accountability reports IV. President's
enactment of the GAA V. Budget hearings with the DBM
V, II, IV, I and III
4.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. The P15B
monthly authorizations are received by Entity A from
DBM
5.After the budget call from the DBM, the proposed budget of
various agencies are submitted immediately to the Office of
the President for review
False
6.This summarizes an agency's fiscal year plans and
performance targets. It shows the agency's physical and
financial plan, monthly cash program, estimate of monthly
income, and list of obligations that are not yet due and
demandable.
Budget Execution Documents (BEDs)
7.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. Which of
the following best describes the $15B monthly
authorizations?
Allotment
8.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.
False
9.A government entity can make disbursements even before
it receives a disbursement authority.
False
10.Budget deliberations in the Congress start in the House of
Senate
False
11.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. The P45B
authorization is received by Entity A from
DBM
12.What is the correct sequence of the following steps in the
budget process? I. Budget Legislation II. Budget Accountability
III. Budget Preparation IV. Budget Execution
III, I, IV and II
13.An entity can incur obligations after receiving notice of its
appropriation but before receiving the allotment
False
14.All disbursements of government entities must be in
conformance with the law and the
National budget
15.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
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amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. In Entity
A's first quarter Statement of Appropriations, Allotments,
Obligations, Disbursements and Balances, how much is shown
as “unpaid obligations?"
20.It is an authorization issued by the DBM to NGAs to incur
obligations. It is also referred to as Obligational Authority.
P5B
22.This is necessary before government entities can enter into
contracts that bind the government for the eventual
disbursement of government funds
16.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. The
allocation of the P100B funds to Entity A is authorized by
Department of Budget and Management (DBM)
17.It refers to the amount contracted by a duly authorized
administrative officer for which the government is held liable..
Obligation
18.Responsibility accounting requires all of the following
except
separate books of accounts to segregate controllable and
non-controllable costs
identification of responsibility centers
distinction between controllable and non-controllable costs
coding structure for responsibility centers
19.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. The P45B
authorization is referred to as
Allotment
Allotment
21.Arrange the following steps according to the sequence that
they appear in the budget cycle. I. Allotment II. Disbursement
authority III. Disbursement IV. Appropriation V. Incurrence of
obligation
IV, I, V, II and III
Allotment
23.Which of the following does not properly describe the
budget process used in the Philippines?
Non-incremental budgeting
24.Under responsibility accounting, a manager's performance
is evaluated
only in terms of the costs, or other variables, that he
controls.
25.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. The half
of the P45B authorization extended by Entity A (Central
Office) to its lower operating units is referred to as
Sub-allotment
26.A government entity must first receive an allotment before
it can incur obligations.
True
27.An entity prepares its budget for the upcoming year from
scratch. It scrutinizes each item in the budget irrespective of
whether the item was included in the previous budget. This
process is called
zero-based budgeting
28.Disbursements by government
commonly made through
MDS Checks
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entities
are
most
29.Which of the following best describes the Notice of Cash
Allocation (NCA)?
It is a form of authorization to a government agency to make
disbursements out of government funds.
30.These are the authorizations programmed annually or for
some other period prescribed by law, by virtue of outstanding
legislation which does not require periodic action by
Congress.
Automatic Appropriations
31.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. The half
of the P15B monthly authorizations extended by Entity A
(Central Office) to its lower operating units is referred to as
d. Notice of Transfer of Allocation (NTA)
32.Appropriation is also called obligational authority.
False
33.Under this approach to budgeting, several parties
participate in the budget preparation - from the lowest levels
of government to the highest levels, and sometimes even
citizen stakeholders participate in the budget preparation.
bottom-up budgeting
34.The Notice of Cash Allocation (NCA) is an authority issued
by the DBM to central, regional and provincial offices and
operating units to cover their cash requirements.
True
35.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. The
allocation of the P100B funds to Entity A is referred to as
Appropriation
36.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. In Entity
A's first quarter Statement of Appropriations, Allotments,
Obligations, Disbursements and Balances, how much is shown
as "unreleased appropriations?"
P55
37.This type of budget is prepared in such a way that
estimated revenues exceed estimated expenditures.
Balanced budget
38.Fact pattern: A legislation approves the allocation of P100B
funds to support the operations of Entity A (a government
agency) in the current year. At the start of first quarter, Entity
A receives authorization to incur obligations for a maximum
amount of P45B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter,
Entity A receives monthly authorization to disburse funds not
to exceed P15B per month. Entity A extends half of those
monthly authorizations to its lower operating units. At the
end of the quarter, total obligations incurred amounted to
P40B while total disbursements amounted to P35B. In Entity
A's first quarter Statement of Appropriations, Allotments,
Obligations, Disbursements and Balances, how much is shown
as "unobligated allotments?"
P5B
39.The budget preparation in the Philippines uses a “bottomup” approach. Under this approach, the budget preparation
starts from the highest levels of the government down to the
lowest levels.
False
40.Entity A, a government entity, wants to make
disbursements. Arrange the following events in the correct
sequence before Entity A can make valid disbursements. I.
Allotment II. Disbursement Authority III. Appropriation IV.
Incurrence of obligation
III, I, IV, and II
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