Chapter 3
The Government Accounting Process
QUIZ 1:
1. Which of the following records is technically not considered an accounting book?
a. General Journal
b. Subsidiary Ledger
c. Cash Disbursements Journal
d. Registry of Appropriations and Allotments
2. Which of the following is (are) affected when a government entity incurs obligations?
a. ORS
b. RAPAL
c. RAOD
d. a and c
3. Which of the following is (are) affected when a government entity makes disbursements to settle
recorded obligations?
a. ORS
b. RAOD
c. Journal and Ledger
d. All of these
4. Which of the following accounts is most likely credited when a government entity remits its
collections to the National Treasury?
a. Cash-Tax Remittance Advice
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Treasury/Agency Deposit, Regular
d. Cash – Collecting Officers
5. This event is recorded in the books of accounts.
a. Notice of Appropriation
b. Notice of Allotment
c. Notice of Cash Appropriation
d. Closing entries
6. The receipt of allotment is recorded in the
a. RAPAL
b. RAOD
c. ORS
d. a and b
7. According to the GAM for NGAs, the Registries are (choose the incorrect statement)
a. maintained by the accounting unit of a government entity
b. maintained by fund cluster
c. maintained for each object of expenditure, whenever the registry is used for monitoring
obligations and disbursements
d. maintained by the budget division of a government entity
8. The 8-digit Revised Chart of Accounts (RCA) Code for the account “Subsidy from National
Government” starts with number
a. 2
b. 3
c. 4
d. 6
9. Which of the following is not a form of disbursement authority?
a. Allotment
b. Notice of Cash Allocation
c. Non-Cash Availment Authority
d. Cash Disbursement Ceiling
10. The NCA is recorded in the
a. Registry of Allotments and Notice of Cash Allocation (RANCA).
b. Books of accounts (Journal and Ledger)
c. Obligation Request and Status (ORS)
d. a and b
“Call upon me in the day of trouble; I will deliver you, and you shall glorify me.”
(Psalms 50:15)
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QUIZ 2:
1. The journal entry to record the billing of revenue (e.g., Communications Network Fees) is
Accounts receivable
xxx
a.
b.
c.
d.
Communications Network Fees
Cash-Collecting Officers
Communications Network Fees
Cash-Modified Disbursement System (MDS), Regular
Communications Network Fees
Accounts receivable
Subsidy from National Government
2. The journal entry to record the receipt of Notice of Cash Allocation is
Cash-Modified Disbursement System (MDS), Regular
a.
b.
c.
d.
Subsidy from National Government
Cash-Collecting Officers
Subsidy from National Government
Cash-Tax Remittance Advice
Due to the National Government
No journal entry.
3. The journal entry to record the receipt of appropriation is
Cash-Modified Disbursement System (MDS), Regular
a.
b.
c.
d.
Subsidy from National Government
Cash-Collecting Officers
Subsidy from National Government
Cash-Tax Remittance Advice
Due to the National Government
No journal entry.
4. The journal entry to record the receipt of allotment is
Cash-Modified Disbursement System (MDS), Regular
a.
b.
c.
d.
Subsidy from National Government
Cash-Collecting Officers
Subsidy from National Government
Cash-Tax Remittance Advice
Due to the National Government
No journal entry.
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
5. The entry to record the reversion of unused NCA at the end of the year is
Subsidy from National Government
a.
b.
c.
Cash-Modified Disbursement
System (MDS), Regular
Accumulated Surplus/(Deficit)
Cash-Treasury/Agency Deposit,
Regular
Subsidy from National Government
xxx
xxx
xxx
xxx
xxx
d.
Cash-Collecting Officers
No journal entry.
xxx
6. The entry to record the remittance of contributions to the GSIS, Pag-IBIG or PhilHealth is
Due to GSIS/ Pag-IBIG/ PhilHealth
xxx
a.
b.
c.
d.
Cash-Tax Remittance Advice
Due to GSIS/ Pag-IBIG/ PhilHealth
Cash-Collecting Officers
Due to GSIS/ Pag-IBIG/ PhilHealth
Cash-Modified Disbursement
System (MDS), Regular
No journal entry.
7. The entry to record the liquidation of payroll fund is
Salaries and Wages, Regular
a.
b.
c.
d.
Personal Economic Relief Allowance (PERA)
Due to BIR
Due to GSIS
Due to Pag-IBIG
Due to PhilHealth
Due to Officers and Employees
Advances for Payroll
Cash-Modified Disbursement
System (MDS), Regular
Due to Officers and Employees
Advances for Payroll
Cash-Collecting Officers
Advances for Payroll
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
8. The entries to record the constructive remittance of taxes withheld to the BIR and the
constructive receipt of NCA for the TRA include
Cash-Tax Remittance Advice
xxx
a.
b.
c.
d.
9.
Due to BIR
Subsidy from National Government
Cash-Tax Remittance Advice
a and b
None of these.
xxx
xxx
xxx
The entry to close the “Cash-Treasury/Agency Deposit, Regular” account at the end of the period is
Accumulated Surplus/(Deficit)
xxx
a.
b.
c.
Cash-Treasury/Agency Deposit,
Regular
Subsidy from National Government
Cash-Treasury/Agency Deposit,
Regular
Cash-Collecting Officers
Cash-Treasury/Agency Deposit,
xxx
xxx
xxx
xxx
d.
Regular
None of these. The account is not closed.
xxx
10. The journal entry to record the collection of unbilled tax revenue (e.g., Travel Tax) through direct
deposit in Authorized Agent Banks is
Accounts Receivable
xxx
a.
b.
Travel Tax
Cash-Modified Disbursement System (MDS), Regular
Travel Tax
xxx
xxx
xxx
c.
d.
Cash-Collecting Officers
Travel Tax
Cash-Treasury/Agency Deposit, Regular
Travel Tax
xxx
xxx
xxx
xxx
“A man who asks is a fool for five minutes. A man who never asks is a fool for
life.”
- Chinese Proverb
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