Government Accounting Quizzes and Exams
Chapter 1
Question 1
1 / 1 pts
An item is recognized as an asset if it meets both the "probable" future economic
benefits" and "reliable measurement" criteria, regardless of whether the item is a
resource controlled arising from past events.
True
Correct!
False
Question 2
1 / 1 pts
The GAM for NGAs is promulgated primarily to harmonize government accounting
standards with the US GAAP.
True
Correct!
False
Question 3
1 / 1 pts
Other sources of funds of the government include fees, borrowings, and grants from
other governments and international bodies
Correct!
True
False
Question 4
1 / 1 pts
Taxes are the main source of funds of the government.
Correct!
True
False
Question 5
1 / 1 pts
The principles in the GAM for NGAs are similar to the principles in the PFRSs.
Correct!
True
False
Question 6
1 / 1 pts
Which of the following is a unique requirement of government accounting that is not
required in the accounting for business entities?
Correct!
The presentation of budget information in the financial statements
The use of accrual basis of accounting
The use of double-entry recording system
The use of single-entry recording system
Question 7
1 / 1 pts
According to the GAM for NGAs, the basis of accounting to be applied by government
entities is the
Any of these as a policy choice
Cash basis
Modified accrual basis
Correct!
Accrual basis
Question 8
1 / 1 pts
Information loses this qualitative characteristics if it is not reported on a timely basis
reliability
neutrality
materiality
Correct!
relevance
Question 9
1 / 1 pts
An entity recognizes an estimated loss from the decline in value of a property. Which of
the following is most likely the qualitative characteristic being applied by the entity?
Correct!
Prudence
Substance over Form
Faithful representation
Reliability
Question 10
1 / 1 pts
The transfer of government funds from one officer to another requires the prior
authorization of the
Head of the government agency
President of the Republic of the Philippines
Correct!
COA
Bureau of Treasury
Question 11
1 / 1 pts
Which of the following is tasked in keeping the general accounts of the government,
supporting vouchers, and other documents?
NGAs
Congress
Correct!
COA
DBM
Question 12
1 / 1 pts
Bureau of Treasury is responsible for
promulgating accounting and auditing rules and regulations
directly implementing the projects of the government
formulation and implementation of the national budget with the goal of attaining the
nation's socio-economic objectives
Correct!
receiving and keeping national funds and managing and controlling the disbursements
thereof
Question 13
1 / 1 pts
Mr. A, a government employee entrusted with the custody of government funds, was
instructed by Mr. B, a politician to release funds for the acquisition of a car as a birthday
gift for Mr. B's daughter who will be having her 18th birthday next week. To relieve Mr. A
from any liability, what should Mr. A do?
Mr. A shall release the fund but requires Mr. B to promise, in writing, that the car shall
be returned to the government after his daughter's birthday
Correct!
Mr. A shall not release the fund but rather notify Mr. B, in writing, that his instruction is
illegal
Mr. A shall release the fund but retains 20% commission
Mr. A shall release the fund, and then notify Mr. B, in writing, that his instruction is illegal
Question 14
1 / 1 pts
These refer to the attributes that make information useful to users
Correct!
Qualitative characteristics
Fundamental principles
Quantitative characteristics
Usefulness characteristics
Question 15
1 / 1 pts
What is the legal basis of the COA in promulgating the GAM for NGAs
Correct!
The Philippine Constitution
RA 9298 The Philippine Accountancy Act of 2004
Philippine Public Sector Accounting Standards
PD 1445 State Audit Code of the Philippines
Quiz Score:
Chapter 2
Question 1
1 / 1 pts
Appropriation is also called obligational authority.
True
Correct!
False
15 out of 15
Question 2
1 / 1 pts
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.
Correct!
True
False
Question 3
1 / 1 pts
A government entity can make disbursements even before it receives a disbursement
authority.
True
Correct!
False
Question 4
1 / 1 pts
A government entity must first receive an allotment before it can incur obligations.
Correct!
True
False
Question 5
1 / 1 pts
In a "bottom-up" approach, budget preparation starts from the highest levels of the
government down to the lowest levels.
True
Correct!
False
Question 6
0 / 1 pts
An entity can incur obligations after receiving notice of its appropriation but before
receiving the allotment.
You Answered
True
Correct Answer
False
Question 7
1 / 1 pts
Budget deliberations in the Congress start in the House of Senate.
True
Correct!
False
Question 8
1 / 1 pts
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.
True
Correct!
False
Question 9
1 / 1 pts
After the budget call from the DBM, the proposed budget of various agencies are
submitted to the Office of the President for review.
True
Correct!
False
Question 10
1 / 1 pts
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!
True
False
Question 11
1 / 1 pts
An authorization issued by the DBM to NGAs to incur obligations. It is also referred to
as Obligational Authority
Correct!
Allotment
Appropriation
Disbursement
Obligation
Question 12
1 / 1 pts
It refers to the amount contracted by a duly authorized administrative officer for which
the government is held liable.
Allotment
Appropriation
Disbursements
Correct!
Obligation
Question 13
0 / 1 pts
Which of the following best describes the Notice of Cash Allocation (NCA)
It is a notice received from the Congress that cash is allocated for the payment of
planned expenditures.
You Answered
It is a from of authorization to a government agency to incur obligations on behalf of the
government.
Correct Answer
It is a from of authorization to a government agency to make disbursements out of
government funds.
It is a from of legislative authorization in the allocation of funds for specified purposes.
Question 14
1 / 1 pts
Disbursements by government entities are most commonly made through
Correct!
MDS Checks
Cash
Petty Cash Fund
Credit Card
Question 15
1 / 1 pts
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
Correct!
V, II, IV, I and III
V, I, II, IV, and III
II, V, IV, I and III
V, IV, II, I and III
Quiz Score:
13 out of 15
Chapter 3
Question 1
1 / 1 pts
A check disbursement is normally recorded as credit to the "Cash-Modified
Disbursement System (MDS) Regular" account
Correct!
True
False
Question 2
1 / 1 pts
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!
True
False
Question 3
1 / 1 pts
The remittance of amounts withheld to the other government agencies such as the BIR,
BOC, GSIS, PhilHealth and Pag-IBIG is done through the TRA.
True
Correct!
False
Question 4
1 / 1 pts
The GAM for NGAs requires the collecting officer to issue an official receipt to
acknowledge the receipt of the notice of cash allocation.
True
Correct!
False
Question 5
1 / 1 pts
At the end of each year, an adjustment is made to revert any unused NCA of a
government entity.
Correct!
True
False
Question 6
0 / 1 pts
Which of the following is recorded in the Obligation Request and Status ORS
receipt of notice of cash allocation from DBM
receipt of notice of appropriation
Correct Answer
entering into employment contracts with employees
You Answered
receipt of allotment from DBM
Question 7
1 / 1 pts
Which of the following accounts is credited when a government entity remits
contributions to the GSIS, PhilHealth and Pag-IBIG?
Cash-Tax Remittance Advice
Cash-Collecting Officer
Correct!
Cash-MDS Regular
Cash-Treasury/Agency Deposit, Regular
Question 8
1 / 1 pts
Entity A, a government entity made disbursement for the travelling expense of its
personnel. These expenditures are most likely classified as
Personnel Services PS
Correct!
Maintenance and Other Operating Expenses MOOE
Financial Expenses FE
Capital Outlays CO
Question 9
0 / 1 pts
Entity A received a Notice of Cash Allocation amounting to P625,000 for the year.
Unused NCA at the end of the period amounted to P6,000. Entity A remitted taxes
withheld to the BIR amounting to P48,000 through TRA. How much is the net financial
assistance/subsidy to be reported in the financial performance.
Correct Answer
667,000
You Answered
571,000
0
619,000
Question 10
0 / 1 pts
A government entity pays an account payable. The entry to record payment will most
likely to include
Correct Answer
credit to Due to BIR
debit to Cash-MDS Regular
None of the above
You Answered
credit to Cash-Treasury/Agency Deposit Regular
Question 11
1 / 1 pts
The receipt of an allotment is recorded by a government entity in the
ORS
RAOD and ORS
Correct!
RAPAL and RAOD
RAPAL
RAOD
Question 12
0 / 1 pts
A journal entry with a credit to the "Cash-MDS, Regular" account will most likely be
recorded in the
General Journal
You Answered
Cash Disbursements Journal
Special Journal
Correct Answer
Check Disbursements Journal
Question 13
0 / 1 pts
Which of the following accounts is credited when a government entity remits taxes
withheld to the BIR
You Answered
Cash-Treasury/Agency Deposit, Regular
Cash-Collecting Officer
Correct Answer
Cash-Tax Remittance Advice
Cash-MDS Regular
Question 14
1 / 1 pts
The various registries maintained by government entities are considered, technically,
as
Correct!
Budget Records
Book of Accounts
Log books
General Ledgers
Question 15
0 / 1 pts
Which of the following accounts is debited when a government entity remits its
collections to the National Treasury?
You Answered
Cash-Collecting Officer
Cash-Tax Remittance Advice
Correct Answer
Cash-Treasury/Agency Deposit, Regular
Cash-MDS, Regular
UnansweredQuestion 16
Not yet graded / 15 pts
Record the following transactions or events . If no journal entry is needed, state the
registry or other document where the transaction or event is recorded. If a journal entry
is needed, provide the journal entry.
a. Receipt of notice of appropriation amounting to P1,000,000
b. Receipt of allotment from DBM amounting to P980,000
c. Incurrence of obligations amounting to P880,000
d. Receipt of NCA amounting to P850,000
e. Accrual of salaries upon approval of payroll. Breakdown as follows:
Salaries and Wages
450,000
PERA
50,000
Gross Compensation 500,000
Withholding Tax
125,000
GSIS
25,000
Pag-IBIG
20,000
PhilHealth
12,000
f. Granting of Cash Advance for the Payroll
g. Liquidation of the Payroll
h. Receipt of delivery of purchased office supplies worth P200,000 from current year's
obligation
i. Payment of P180,000 accounts payable, taxes withheld amount to P10,000
j. Remittance of all taxes withheld to the BIR
k. Remittance of other amounts withheld to the other government agencies concerned.
l. Billing of revenues for Power Supply System Fees amounting to P200,000
m. Collection of P200,000 from billed revenue and remittance of total collection to the
National Treasury
n. Reversion of unused NCA
Quiz Score:
9 out of 30
Chapter 4
Question 1
1 / 1 pts
The taxable event for income tax is the passage of the time period for which the tax is
levied.
True
Correct!
False
Question 2
1 / 1 pts
Taxes are compulsory payments, imposed on persons, properties or activities, intended
to provide revenue to the government. Taxes include fees, fines and penalties.
True
Correct!
False
Question 3
1 / 1 pts
Revenues of a government entity arise from exchange transactions only.
True
Correct!
False
Question 4
1 / 1 pts
When cash flows are deferred, the fair value of the consideration receivable is its
present value.
Correct!
True
False
Question 5
1 / 1 pts
Payments to government entities in the form of checks are not allowed.
True
Correct!
False
Question 6
1 / 1 pts
According to the GAM for NGAs, interest revenue is recognized
Correct!
on a time proportion basis using effective interest method
on a straight line basis
in accordance with the substance of the relevant loan agreement
when the entity's right to receive payment is established
Question 7
1 / 1 pts
The receipt of which of the following may not give rise to revenue by a government
entity?
Correct!
Inter-agency fun transfer
Notice of cash allocation
Tax Remittance Advice
Subsidy from another government entity
Question 8
1 / 1 pts
Gifts, donations and goods in-kind with condition are recognized
Correct!
initially as liability and recognized as revenue only when condition is satisfied
as revenue immediately upon the receipt thereof
as revenue measure at fair value only when actually received
directly in equity
Question 9
1 / 1 pts
Entity A enters into a long-term contract to provide services. The outcome of the
transaction can be estimated reliably and the progress on the contract can be measured
with sufficient reliability. According to PPSAS, how should the revenue from the contract
be recognize?
Correct!
by reference to the stage of completion of the contract at the reporting date
on a straight line basis over the contract term
full recognition of the contract price upon completion of the contract
only to the extent of costs that are expected to be recovered
Question 10
1 / 1 pts
Which of the following, according to GAM for NGAs, may never give rise to revenue for
a government entity?
Correct!
services in-kind
debt forgiveness
concessionary loan
grant with condition
Question 11
1 / 1 pts
A type of fund held by a government entity that is designated for special purposes
Correct!
special fund
general fund
trust fund
fiduciary fund
Question 12
1 / 1 pts
Entity A sells goods with a list price of P100,000, on account. Credit term is 20% and
10%. Journal entry to recognize the revenue includes all of the following except
Correct!
debit sales discount P28,000
credit sales revenue P72,000
debit accounts receivable P72,000
all of the given choices
Question 13
1 / 1 pts
When an amount already recognized as revenue becomes subsequently uncollectible, it
is
Correct!
recognized as expense
recognized as adjustment to the revenue originally recognized
not recognized
none of the given choices
Question 14
1 / 1 pts
The receipt of a performance bond or a security deposit is credited to a
Correct!
liability account
revenue account
cash account
none of the given choices
Question 15
0 / 1 pts
A government entity collects fees for the processing of certain permits. The processing
of a permit would normally take a few minutes. The processing fee is collected upon
issuance of the permit. This government entity would normally recognize revenue from
permit fees
Correct Answer
upon collection of the fee
on a straight line basis
by reference to the stage of completion
You Answered
when significant risks and rewards are transferred to the customer
Quiz Score:
14 out of 15
Chapter 5 (Long Quiz)
Question 1
0 / 1 pts
Disbursements through the Cash Disbursement Ceiling CDC results to the recognition
of a loan payable in the books of accounts of the BTr.
You Answered
True
Correct Answer
False
Question 2
1 / 1 pts
No additional cash advance shall be given to any official or employee unless the
previous cash advance given to him is first liquidated.
Correct!
True
False
Question 3
1 / 1 pts
The Cash Disbursement Ceiling is a disbursement authority issued to government
agencies with foreign service posts.
Correct!
True
False
Question 4
1 / 1 pts
According to GAM for NGAs, the Advice to Debit Account (ADA) mode of disbursement
can also be used if the payee maintains an account in other banks aside from where the
government entity maintains its account.
Correct!
True
False
Question 5
1 / 1 pts
No cash advance shall be given unless for a legally authorized specific purpose;
Correct!
True
False
Question 6
1 / 1 pts
An additional cash advance shall be given to any official or employee even if the
previous cash advance given to him is first is still unliquidated.
True
Correct!
False
Question 7
1 / 1 pts
All disbursements shall be made through Disbursement Vouchers (DVs) or Payroll
which are approved by the Head of the Agency.
Correct!
True
False
Question 8
1 / 1 pts
All disbursements require prior certifications to establish their validity and legality. A
certification for fictitious obligation is void and results to criminal liability by the certifying
officials
Correct!
True
False
Question 9
1 / 1 pts
No cash advance shall be given unless for a illegally authorized specific purpose;
True
Correct!
False
Question 10
1 / 1 pts
Transfer of cash advance from one accountable officer to another shall not be allowed
Correct!
True
False
Question 11
1 / 1 pts
According to GAM for NGAs, the Advice to Debit Account (ADA) mode of disbursement
can be used only if the payee maintains an account in the same bank where the
government entity maintains its account.
True
Correct!
False
Question 12
1 / 1 pts
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 transaction is called Non-Cash Availment Autority (NCAA).
Correct!
True
False
Question 13
1 / 1 pts
No cash advance shall be given unless for a legally unauthorized specific purpose;
True
Correct!
False
Question 14
1 / 1 pts
No cash advance shall be given for a legally authorized specific purpose;
True
Correct!
False
Question 15
1 / 1 pts
Disbursements through the Non-Cash Availment Authority results to the recognition of a
loan payable in the books of accounts of the BTr.
Correct!
True
False
Question 16
1 / 1 pts
Which of the following is not a form of disbursement authority?
Correct!
Allotment
NTA
TRA
NCA
Question 17
1 / 1 pts
Which of the following is not used in processing disbursements?
PCVs
Payroll
Correct!
ORs
DVs
Question 18
0 / 1 pts
Which of the following results to the recognition, in the books of accounts, of expenses
classified as Personnel Services?
Issuance of office supplies to end users
You Answered
Granting cash advance for payroll
Liquidation of payroll fund
Correct Answer
Set up of payable for payroll
Question 19
1 / 1 pts
According to the GAM for NGAs, cash disbursements are made through
none of the choices given
direct cash payments by the Head of Agency to the payees
Correct!
cash advances to authorized personnel
direct cash payment by Collecting Officers to payees
Question 20
1 / 1 pts
Which of the following modes of disbursements would result to the recognition of a loan
payable in books of the BTr?
ADA
CDC
UFC
Correct!
NCAA
Question 21
1 / 1 pts
Entity A has a foreign service post. During the period, Entity A receives authorization
from the DBM allowing it to use its collection of its foreign service post to defray for the
necessary operating expenses of the foreign service post. This authorization is called
NCAA
ADA
eMDS
Correct!
CDC
Question 22
0 / 1 pts
Chief Accountant shall charge obligations incurred against available allotment to ensure
that
You Answered
NCA is sufficient to meet disbursement needs
no unreleased appropriations
Correct Answer
no overdraft is incurred
no excess allotment exists
Question 23
1 / 1 pts
Which of the following results to the recognition of expense?
remittance of the refund for excess cash advance to the BTr
Correct!
liquidation of cash advance for travel
granting of cash advance for travel
refund of excess of cash advance
Question 24
1 / 1 pts
Entity A makes payment through bank transfer. This mode of disbursement is most
likely through the use of a(an)
MDS Checks
NCA
Commercial Checks
Correct!
ADA
Question 25
1 / 1 pts
Which of the following statements regarding the disbursement of government funds is
incorrect?
A cash advance shall not be used to encash checks or to liquidate a previous cash
advance.
No additional cash advance shall be given to any official or employee unless the
previous cash advance given to him is first liquidated.
Transfer of cash advance from one officer to another is prohibited.
Correct!
Officials and employees authorized to travel shall be granted cash advance to cover
traveling expenses. The amount granted shall be accounted for as “Due to Officers and
Employees.”
Question 26
1 / 1 pts
Which of the following is not one of the modes of disbursements by a government
entity?
Correct!
payment through Short Messaging System (SMS)
payment through cash
payment through MDS Checks
none of the choices given
Question 27
1 / 1 pts
Authority issued by the DBM to central, regional and provincial offices and operating
units to cover their cash requirements. It specifies maximum amount of cash
requirements . It specifies the maximum amount of cash that can be withdrawn from a
GSB in a certain period
TRA
CDC
NCAA
Correct!
NCA
Question 28
1 / 1 pts
All Disbursement Vouchers (DVs) or Payroll shall be approved by the
Chief Accountant
Head of Budget
Correct!
Head of Agency
BTr
Question 29
1 / 1 pts
Which of the following agencies will most likely be able to obtain a disbursement
authority in the form of Cash Disbursement Ceiling CDC?
NFA
BIR
Correct!
DFA
DPWH
Question 30
1 / 1 pts
Entity A disburses a check chargeable against the Treasury Account. The journal entry
to record the disbursements involves a credit to which of the following accounts?
Cash in Bank - Local Currency, Current Account
Cash - Treasury/Agency Deposit, Regular
Correct!
Cash - MDS, Regular
Cash - Collecting Officers
Question 31
1 / 1 pts
It constitute payments out of cash advances granted to the regular and special
disbursing officers for personal services, petty expenses and MOOE for field operating
requirements
Correct!
Cash disbu
Correct Answers
disbursements by cash
disbursement by cash
cash disbursements
cash disbursement
Question 32
1 / 1 pts
The personnel who certifies the availability of cash and completeness of supporting
documents
accountant
Correct!
Chief Accountant
Question 33
1 / 1 pts
It is authorization to an agency to pay the obligations
Correct!
disbursement authority
Question 34
0 / 1 pts
Checks issued by NGAs chargeable against the Agency Checking Account with GSBs.
These shall be covered by income/receipts authorized to be deposited with AGDBs.
Correct Answer
commercial check
You Answered
commercial checks
Question 35
1 / 1 pts
Refers to the amount granted to duly designated Petty Cash Fund Custodian for
payment of authorized petty or miscellaneous expenses which cannot be conveniently
paid through checks/LDDAP-ADA
Correct!
petty cash fund
Quiz Score:
32 out of 35
This quiz score has been manually adjusted by +1.0 points.
Chapter 6
Question 1
1 / 1 pts
No journal entry is prepared when a disbursement is made out of the petty cash fund.
Correct!
True
False
Question 2
0 / 1 pts
According to the GAM for NGAs, all financial assets shall be initially measured at fair
value plus transaction costs.
You Answered
True
Correct Answer
False
Question 3
1 / 1 pts
Transaction costs on financial assets classified under the held to maturity category are
expensed outright.
True
Correct!
False
Question 4
1 / 1 pts
A government entity established P30,000 petty cash fund. The custodian need not be
bonded.
True
Correct!
False
Question 5
1 / 1 pts
A government entity established P30,000 petty cash fund. The custodian must be
bonded.
Correct!
True
False
Question 6
1 / 1 pts
A journal entry is prepared when a disbursement is made out of the petty cash fund.
True
Correct!
False
Question 7
1 / 1 pts
According to GAM for NGAs, all financial assets are initially measured at fair value.
True
Correct!
False
Question 8
1 / 1 pts
An unexplained cash overage of a government entity is recorded as
Correct!
credit to miscellaneous income account
credit to payable account
debit to cash shortage or overage account
credit to cash shortage or overage account
Question 9
1 / 1 pts
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!
transaction cost
cost to sell
carrying amount
fair value
Question 10
0 / 1 pts
According to GAM for NGAs, a government entity's cash comprise all of the following
except
Correct Answer
cash equivalents
cash in bank
cash on hand
You Answered
none of the choices given
Question 11
0 / 1 pts
A cash shortage of a government entity is most likely recorded as
Correct Answer
debit receivable account
You Answered
credit receivable account
credit miscellaneous income
debit miscellaneous income
Question 12
1 / 1 pts
Which of the following is not considered financial asset?
Correct!
prepaid asset
accounts receivable
petty cash fund
investment in debt securities
Question 13
1 / 1 pts
Which of the following is not one of the categories of financial assets under the GAM for
NGAs
Correct!
Financial assets through other comprehensive income
Held to maturity investments
Loans and receivables
Available for sale financial assets
Question 14
1 / 1 pts
The per transaction threshold for petty cash disbursements of a government entity
Correct!
15,000
5,000
10,000
No limit
Question 15
1 / 1 pts
Dishonored checks are recorded by a government entity as
Correct!
other receivables
note receivables
accounts receivables
none of the choices given
Quiz Score:
12 out of 15
Chapter 7
Question 1
1 / 1 pts
The GAM for NGAs does not allow government entities to use periodic inventory
system.
Correct!
True
False
Question 2
1 / 1 pts
The specific identification cost formula is not available for use by government entities.
True
Correct!
False
Question 3
1 / 1 pts
The specific identification cost formula is available for use by government entities.
Correct!
True
False
Question 4
1 / 1 pts
The GAM for NGAs allows government entities to use the FIFO cost flow formula
True
Correct!
False
Question 5
1 / 1 pts
The GAM for NGAs does not allow government entities to use the FIFO cost flow
formula
Correct!
True
False
Question 6
1 / 1 pts
Government entities record purchases of inventories
Correct!
in an inventory account
in an expense account
in an income account
none of the choices given
Question 7
1 / 1 pts
Entity A, a government entity, purchases relief goods which are to be held on standby,
ready to be given out when calamity strikes. Entity A will most likely classify the goods
purchased as
Correct!
inventory held for distribution
inventory held for sale
inventory held for consumption
none of the choices given
Question 8
1 / 1 pts
Which of the following cost formulas is not available for use by government entities
Correct!
FIFO
Specific Identification
Weighted average
none of the choices given
Question 9
1 / 1 pts
Entity A, a government hospital, acquires medicines to be sold in its pharmacy. Entity A
would record the medicines acquired as
Correct!
inventory held for sale
inventory held for distribution
inventory held for consumption
semi expendable
Question 10
1 / 1 pts
The GAM for NGAs requires the use of which of the following inventory systems
Correct!
perpetual inventory system
periodic inventory system
both perpetual and periodic system
none of the above
Quiz Score:
10 out of 10
Chapter 8
Question 1
1 / 1 pts
Biological assets are initially and subsequently measured at fair value less costs to sell
Correct!
True
False
Question 2
1 / 1 pts
An essential element of agricultural activity is the management of the biological
transformation of a biological assets
Correct!
True
False
Question 3
1 / 1 pts
Agricultural produce is measured at fair value less costs to sell only at the point of
harvest.
Correct!
True
False
Question 4
1 / 1 pts
Entity A's diary cattle gave birth to a calf. The fair value less cost to sell of the new born
calf is P10,000. Entity A recognizes a gain of P10,000 from the initial recognition of the
calf.
Correct!
True
False
Question 5
0 / 1 pts
Fair value is quoted price in an active market less transaction costs
You Answered
True
Correct Answer
False
Question 6
1 / 1 pts
Which of the following is considered an agricultural produce?
eggs to be hatched into chicks
Correct!
palay
dairy cow
condensed milk
Question 7
1 / 1 pts
Which of the following is considered an inventory rather than agricultural produce at the
point
Correct!
tea
picked leaves
harvested cane
harvested cotton
Question 8
1 / 1 pts
On January 1, 20x1, the biological assets of Entity A consist of two 1-year old animals
with fair value less costs to sell of ₱1,000 each.
The following transactions occurred during the period:
1. On July 1, 20x1, two 1-year old animals are acquired for ₱1,100 each, equal to the
FVLCS on this date.
2. On October 1, 20x1, two animals are born. The FVLCS of a newborn on this date is
₱500
The FVLCS on December 31, 20x1 are as follows:
Age
FVLCS
new born
₱600
3 mos. old
₱800
1 yr. old
₱1,200
1.5 yr. old
₱1,500
2 yrs. old
₱2,000
How much is change in FVLCS due to physical change?
800
2000
Correct!
3600
1200
Question 9
1 / 1 pts
On January 1, 20x1, the biological assets of Entity A consist of two 1-year old animals
with fair value less costs to sell of ₱1,000 each.
The following transactions occurred during the period:
1. On July 1, 20x1, two 1-year old animals are acquired for ₱1,100 each, equal to the
FVLCS on this date.
2. On October 1, 20x1, two animals are born. The FVLCS of a newborn on this date is
₱500
The FVLCS on December 31, 20x1 are as follows:
Age
FVLCS
new born
₱600
3 mos. old
₱800
1 yr. old
₱1,200
1.5 yr. old
₱1,500
2 yrs. old
₱2,000
How much is change in FVLCS due to price change?
1200
3600
400
Correct!
800
Question 10
1 / 1 pts
Which of the following is considered a biological asset?
ham
carcass
piggy bank
Correct!
pig
Quiz Score:
9 out of 10
Chapter 9
Question 1
1 / 1 pts
According to GAM for NGAs, a government entity shall at each reporting date determine
the recoverable amount of an investment property and compare it with its carrying
amount.
True
Correct!
False
Question 2
0 / 1 pts
An investment property with carrying amount of P10 is sold for P7. Transaction cost on
the sale amounted to P1. The loss on the derecognition is P4.
Correct Answer
True
You Answered
False
Question 3
1 / 1 pts
According to the GAM for NGAs, government entities shall use both the cost model or
the fair value model to subsequently measure investment property.
True
Correct!
False
Question 4
1 / 1 pts
Recoverable amount is the lower of an asset's fair value less cost to sell and value in
use
True
Correct!
False
Question 5
1 / 1 pts
If an asset's recoverable amount is less than its carrying amount, the asset is impaired.
Correct!
True
False
Question 6
1 / 1 pts
Select the incorrect statement regarding impairments of investment properties.
Impairments of investment properties of government entities are recognized in surplus
or deficit.
Investment properties are subject to impairment.
Compensation from third parties for investment property that was impaired or lost shall
be recognized in surplus or deficit when the compensation becomes receivable and not
offset with the amount of loss.
Correct!
Impairment losses on investment properties measured under the cost model are never
reversed.
Question 7
1 / 1 pts
Which of the following qualifies for classification as an investment property?
Building being rented from another entity under an operating lease and leased out
under various operating leases.
Investment property that is currently being developed for future use as owner-occupied
property
Property that is leased out to another entity under a finance lease
Correct!
Property that is currently being developed for future use as investment property
Question 8
1 / 1 pts
Which of the following assets may be classified as investment property?
Intangible asset held for lease
Equipment held for lease
Correct!
Land held for long-term capital appreciation
Building held under operating lease
Question 9
1 / 1 pts
Under this model, investment properties are measured at cost less accumulated
depreciation and accumulated impairment losses.
impairment loss model
fair value model
Correct!
cost model
gorgeous model
Question 10
1 / 1 pts
Which of the following properties falls under the definition of investment property?
A building owned by an entity and leased out under an finance lease
Correct!
Land held for long-term capital appreciation
Property being constructed on behalf of third parties
Property occupied by an employee paying market rent
Quiz Score:
9 out of 10
Chapter 10
Question 1
1 / 1 pts
Government entities records depreciation on a monthly basis.
Correct!
True
False
Question 2
1 / 1 pts
An item of PPE with historical cost of P10 accumulated depreciation of P5 and
accumulated impairment losses of P1 is sold for P7. The gain on the sale is P2.
True
Correct!
False
Question 3
1 / 1 pts
According to GAM for NGAs, government entities may chose either the cost model or
the revaluation model to subsequently measure their PPE.
True
Correct!
False
Question 4
1 / 1 pts
Entity A acquires an item of PPE from an inter agency transfer. Entity A will recognize
any gain or loss on this transaction.
True
Correct!
False
Question 5
1 / 1 pts
The capitalization threshold for items of PPE by government entities is below P15,000
which is equal to the petty cash disbursement limit.
True
Correct!
False
Question 6
0 / 1 pts
All of the following are expensed outright and do not form part of the cost of an item of
PPE except
You Answered
Installation and assembly costs after the asset is in the location and condition intended
by management.
Administration and other general overhead costs.
Correct Answer
Insurance costs while a purchased equipment is in-transit.
Professional fees incurred in the training of staff who will be operating the machinery
acquired.
Question 7
1 / 1 pts
Entity A exchanged equipment with Entity B. Pertinent data are shown below:
Entity A
Entity B
Carrying amount
85,000
130,000
Fair value
95,000
115,000
Cash paid by Entity A to Entity B 15,000
If the exchange has commercial substance, how much is the gain (loss) recognized by
Entity B in the exchange?
gain of 10,000
loss of 5,000
Correct!
loss of 15,000
gain of 5,000
loss of 10,000
gain of 15,000
Question 8
0 / 1 pts
Which of the following is included in the initial cost of an item of PPE?
Correct Answer
Present value of the estimates of decommissioning and restoration costs
Refundable purchase taxes
Cash discounts not taken
You Answered
Trade discounts
Question 9
1 / 1 pts
Entity A, a government entity, acquires an equipment on December 16, 20x1. Which of
the following is correct?
The equipment will only be depreciated for 2 weeks in the current year.
The equipment will be assigned a residual value of 15%.
Correct!
The equipment will not be depreciated in the current year.
The equipment will be classified as inventory if it has a cost of less than ₱25,000.
Question 10
1 / 1 pts
Entity A exchanged equipment with Entity B. Pertinent data are shown below:
Entity A
Entity B
Carrying amount
85,000
130,000
Fair value
95,000
115,000
Cash paid by Entity A to Entity B 15,000
If the exchange has commercial substance, how much is the initial measurement of the
equipment received by Entity B?
95,000
115,000
Correct!
100,000
130,000
Quiz Score:
8 out of 10
Chapter 11
Question 1
1 / 1 pts
The amortization of an intangible is credited directly to the intangible asset account
according to GAM for NGAs.
True
Correct!
False
Question 2
1 / 1 pts
The development costs of an internally generate intangible asset may be capitalized if
certain conditions are met.
Correct!
True
False
Question 3
1 / 1 pts
A government entity does not amortize intangible assets.
True
Correct!
False
Question 4
1 / 1 pts
A government entity amortize intangible assets.
Correct!
True
False
Question 5
1 / 1 pts
Government entities amortize all of their intangible assets over a period of 2-10 years,
unless, a more appropriate estimate of useful life is available.
True
Correct!
False
Question 6
1 / 1 pts
It refers to the application of research findings or other knowledge to a plan or design for
the production of new or substantially improved materials, devices, products, processes,
systems, or services before the start of commercial production or use.
Internal generation
Research
R&D activities
Correct!
Development
Question 7
0 / 1 pts
It is the systematic allocation of the depreciable amount of an intangible asset over its
useful life.
Cost Allocation Concept
Impairment
You Answered
Depreciation
Correct Answer
Amortization
Question 8
1 / 1 pts
According to the GAM for NGAs, to qualify as intangible asset, an item must possess all
of the following elements except
Existence of future economic benefits or service potential
Control over a resource
Identifiability
Correct!
Held for distribution
Question 9
1 / 1 pts
An active market is a market in which all the following conditions exist, except
prices are available to the public
the items traded in the market are homogeneous
Correct!
the price is most advantageous
willing buyers and sellers can normally be found at any time
Question 10
0 / 1 pts
According to the GAM for NGAs, an intangible asset is identifiable when it
a. is separable, i.e., capable of being separated and divided from the entity and sold,
transferred, licensed, rented, or exchanged, either individually or together with a related
contract, identifiable asset or liability, regardless of whether the entity intends to do so.
b. arises from binding arrangements including contractual or other legal rights,
regardless of whether those rights are transferable or separable from the entity or from
other rights and obligations.
Correct Answer
Either a or b
You Answered
Both a and b
Neither a or b
Quiz Score:
8 out of 10
Chapter 12
Question 1
1 / 1 pts
For financial liability measured at amortized cost, transaction costs are included in the
initial measurement.
Correct!
True
False
Question 2
1 / 1 pts
For financial liability measured at amortized cost, transaction costs are expensed
immediately.
True
Correct!
False
Question 3
1 / 1 pts
Bond issue costs are not treated as outright expense but amortized over the life of the
bond
Correct!
True
False
Question 4
1 / 1 pts
For financial liability designated initially as at fair value through surplus and deficit, the
related transactions costs are expensed immediately
Correct!
True
False
Question 5
1 / 1 pts
Bond issue costs are treated as outright expense
True
Correct!
False
Question 6
0 / 1 pts
On January 1, 20x1, the BTr issues a 5-year, 6%, ₱2,000,000 bonds for ₱1,900,000.
Transaction costs on the issuance (bond issue costs) amount to ₱59,708. Interest
payments are due every December 31 but the principal is due only at maturity date. The
bonds are subsequently measured at amortized cost. How much is the annual
premiums of the bond?
59,708
You Answered
100,000
759,708
Correct Answer
600,000
Question 7
0 / 1 pts
Legal obligation may arise from which of the following?
Correct Answer
Both A and B
You Answered
Neither A and B
B. Contacts
A. Law
Question 8
0 / 1 pts
A legal obligation to restructure exists if, at the reporting date,
You Answered
None of the given choices
the entity has a detailed formal plan for a restructuring.
the plan to restructure is announced to those affected by it.
Correct Answer
the entity has entered into a binding agreement to sell or transfer an operation.
Question 9
1 / 1 pts
On January 1, 20x1, the BTr issues a 5-year, 6%, ₱2,000,000 bonds for ₱1,900,000.
Transaction costs on the issuance (bond issue costs) amount to ₱59,708. Interest
payments are due every December 31 but the principal is due only at maturity date. The
bonds are subsequently measured at amortized cost. How much is the discount?
600,000
759,708
Correct!
100,000
59,708
Question 10
0 / 1 pts
On January 1, 20x1, the BTr issues a 5-year, 6%, ₱2,000,000 bonds for ₱1,900,000.
Transaction costs on the issuance (bond issue costs) amount to ₱59,708. Interest
payments are due every December 31 but the principal is due only at maturity date. The
bonds are subsequently measured at amortized cost. How much is the bond issue cost?
100,000
759,708
You Answered
600,000
Correct Answer
59,708
Quiz Score:
6 out of 10
Chapter 13
Question 1
1 / 1 pts
Minimum lease payments exclude any amount to be paid for bargain purchase options
and guaranteed residual values.
True
Correct!
False
Question 2
1 / 1 pts
A lessor under a finance lease recognizes a net investment in the lease measured at
the present value of the lease payments and unguaranteed residual value if any
Correct!
True
False
Question 3
1 / 1 pts
If a lease transfers ownership of the property to the lessee by the end of the lease term,
it will be classified as a finance lease by the lessor.
Correct!
True
False
Question 4
1 / 1 pts
A lessee recognizes an asset and a liability from a operating lease
True
Correct!
False
Question 5
1 / 1 pts
The lessee depreciates the leased asset under the operating lease.
True
Correct!
False
Question 6
1 / 1 pts
Any asset or liability arising from a lease is initially recognized at the
Correct!
commencement of the lease term
inception of the lease
conception of the lease
None of these given choices
Question 7
3 / 3 pts
On January 1, 2020, Lessor leases out a machinery to Lessee under a 3-year lease.
Annual rent of P50,000 payable at the end of each year. The implicit rate known to
Lessee is 12%. The machinery has remaining useful life of 4 years and historical cost of
P400,000 and an accumulated depreciation of P279,908 in the books of Lessor.
How much should be recognized as finance lease payable in the books of the lessee?
Correct!
120,092
124,391
143,212
None
Question 8
0 / 3 pts
On January 1, 2020, Lessor leases out a machinery to Lessee under a 3-year lease.
Annual rent of P50,000 payable at the end of each year. The implicit rate known to
Lessee is 12%. The machinery has remaining useful life of 4 years and historical cost of
P400,000 and an accumulated depreciation of P279,908 in the books of Lessor.
What should be the entry on the books of the Lessee upon commencement of the
lease?
No entry required
Correct Answer
Debit asset account, credit liability account
debit receivable and accumulated depreciation accounts, credit deferred revenue and
asset accounts
You Answered
debit asset account, credit cash-mds regular account
Question 9
3 / 3 pts
On January 1, 2020, Lessor leases out a machinery to Lessee under a 3-year lease.
Annual rent of P50,000 payable at the end of each year. The implicit rate known to
Lessee is 12%. The machinery has remaining useful life of 4 years and historical cost of
P400,000 and an accumulated depreciation of P279,908 in the books of Lessor.
How much should be recognized as finance lease receivable in the books of the
lessee?
120,092
124,391
143,212
Correct!
None
Quiz Score:
12 out of 15
Chapter 14
Question 1
1 / 1 pts
Which of the following is not applicable to a government entity?
Presenting a statement of financial position showing distinctions between current and
noncurrent assets and liabilities
Presenting additional disclosures in the notes when expenses are presented in the
statement of financial performance by function
Presenting cash flows from operating activities in the statement of cash flows using the
direct method
Correct!
Presenting cash flows from operating activities in the statement of cash flows using the
indirect method
Question 2
1 / 1 pts
Changes in accounting policies are accounted for
using the transitional provision, if any.
by retrospective application.
by prospective application
Correct!
All of the choices given
None of the choices given
Question 3
1 / 1 pts
A government entity recognizes the effect of this item in surplus or deficit rather than
directly in equity.
Correct!
Receipt of Notice of Cash Allocation
Correction of a prior period fraudulent transaction that is discovered in the current year
Change in accounting policy
The increase in the fair value of an investment that is classified as available-for-sale
financial asset
Question 4
1 / 1 pts
Which of the following information is not reported in the statement of changes in net
assets/equity?
Correct!
Effects of changes in accounting estimates.
Surplus or deficit for the period
Items of revenue and expense that are recognized directly in equity
The balance of accumulated surpluses or deficits at the beginning of the period and at
the reporting date, and the changes during the period.
Question 5
1 / 1 pts
The presentation requirements for statement of cash flows of government entities differ
from the requirements of a business entity in which of the following respects?
Correct!
The presentation of cash flows from (used in) operating activities using the direct
method only; the choice of using the indirect method is not available.
The classification of cash flows according to operating, investing and financing
activities.
The presentation of cash flows from (used in) investing and financing activities at gross
amounts of receipts and disbursements, unless the conditions for presenting at net
amounts are met.
The presentation of statement of cash flows in comparative form, with cross-referencing
to the notes whenever deemed relevant to the understanding by users of financial
statements.
Question 6
1 / 1 pts
In government accounting, presenting additional disclosures in the notes when
expenses are presented in the statement of financial performance by function is not
applicable.
True
Correct!
False
Question 7
1 / 1 pts
A liability is current if it is cash or a cash equivalent, unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting date.
True
Correct!
False
Question 8
1 / 1 pts
General purpose financial statements are those intended to meet the needs of users
who are in a position to demand reports tailored to meet their particular information
needs.
True
Correct!
False
Question 9
1 / 1 pts
In government accounting, presenting additional disclosures in the notes when
expenses are presented in the statement of financial performance by function is
applicable.
Correct!
True
False
Question 10
1 / 1 pts
Surplus or deficit for the period is not reported in the statement of changes in net
assets/equity.
True
Correct!
False
Quiz Score:
10 out of 10
Chapter 15 & 16
Question 1
1 / 1 pts
Service concession asset is an asset provided by the operator which it constructs,
develops or acquires from a third party
Correct!
True
False
Question 2
1 / 1 pts
Binding agreements are
contracts and other arrangements that confer similar rights and obligations on the partie
s to it as if they were in the form of a contract
True
Correct!
False
Question 3
1 / 1 pts
A grantor is a public sector
entity that grants the right to use the service concession asset to the operator
Correct!
True
False
Question 4
1 / 1 pts
Grantor shall recognize liability at the same amount of the service concession asset
adjusted by any other consideration from grantor to operator or vice versa
Correct!
True
False
Question 5
1 / 1 pts
In a service concession arrangement, the grantor is a private sector utility
True
Correct!
False
Question 6
0 / 1 pts
Grantor shall recognize liability at the same amount of the service concession asset
adjusted by any other consideration from grantor to operator or vice versa
You Answered
True
Correct Answer
False
Question 7
1 / 1 pts
Non-profit organizations' surplus revenues are distributed as dividends
True
Correct!
False
Question 8
1 / 1 pts
Unconditional promise to contribute is classified as unrestricted contribution
True
Correct!
False
Question 9
1 / 1 pts
Contributions are classified based on donor's restrictions
Correct!
True
False
Question 10
1 / 1 pts
Contributions to non-profit organizations should be received from reciprocal transactions
True
Correct!
False
Quiz Score:
Long Quiz C1 – C4
Question 1
0 / 1 pts
9 out of 10
An item is recognized as an asset if it meets both the "probable" future economic
benefits" and "reliable measurement" criteria, regardless of whether the item is a
resource controlled arising from past events.
You Answered
True
Correct Answer
False
Question 2
1 / 1 pts
The GAM for NGAs is promulgated by the Philippine Congress under the authority
conferred to it under the Philippine Constitution.
True
Correct!
False
Question 3
1 / 1 pts
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!
True
False
Question 4
1 / 1 pts
The principles used in the financial reporting of government entities are very unique that
only a very few of these principles are similar to those that are applied to business
entities.
True
Correct!
False
Question 5
1 / 1 pts
Taxes are the main source of funds of the government.
Correct!
True
False
Question 6
1 / 1 pts
The principles in the GAM for NGAs are similar to the principles in the PFRSs.
Correct!
True
False
Question 7
1 / 1 pts
Other sources of funds of the government include fees, borrowings, and grants from
other governments and international bodies
Correct!
True
False
Question 8
1 / 1 pts
A unique financial reporting requirement of government entities is the use of fund cluster
accounting. Under fund cluster accounting, separate books and reports are prepared for
each type of fund held by a government entity.
Correct!
True
False
Question 9
1 / 1 pts
The GAM for NGAs is promulgated primarily to harmonize government accounting
standards with the US GAAP.
True
Correct!
False
Question 10
1 / 1 pts
Currently, the financial reporting of government entities is based on NGAS.
True
Correct!
False
Question 11
1 / 1 pts
In a "bottom-up" approach, budget preparation starts from the highest levels of the
government down to the lowest levels.
True
Correct!
False
Question 12
1 / 1 pts
An entity can incur obligations after receiving notice of its appropriation but before
receiving the allotment.
True
Correct!
False
Question 13
1 / 1 pts
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.
True
Correct!
False
Question 14
1 / 1 pts
A government entity can make disbursements even before it receives a disbursement
authority.
True
Correct!
False
Question 15
1 / 1 pts
After the budget call from the DBM, the proposed budget of various agencies are
submitted to the Office of the President for review.
True
Correct!
False
Question 16
1 / 1 pts
Budget deliberations in the Congress start in the House of Senate.
True
Correct!
False
Question 17
1 / 1 pts
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!
True
False
Question 18
1 / 1 pts
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.
Correct!
True
False
Question 19
1 / 1 pts
A government entity must first receive an allotment before it can incur obligations.
Correct!
True
False
Question 20
1 / 1 pts
Appropriation is also called obligational authority.
True
Correct!
False
Question 21
1 / 1 pts
A check disbursement is normally recorded as credit to the "Cash-Modified
Disbursement System (MDS) Regular" account
Correct!
True
False
Question 22
1 / 1 pts
Technically, only the Journals and Ledgers are considered accounting records; the
Registries are budget records.
Correct!
True
False
Question 23
1 / 1 pts
Government entities and business entities use the term "obligation" or the phrase
"incurrence of obligation" similarly.
True
Correct!
False
Question 24
1 / 1 pts
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!
True
False
Question 25
1 / 1 pts
Separate accounting records and budget registries are maintained for each fund
cluster.
Correct!
True
False
Question 26
1 / 1 pts
Both the 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!
True
False
Question 27
1 / 1 pts
At the end of each year, an adjustment is made to revert any unused NCA of a
government entity.
Correct!
True
False
Question 28
1 / 1 pts
The remittance of amounts withheld to the other government agencies such as the BIR,
BOC, GSIS, PhilHealth and Pag-IBIG is done through the TRA.
True
Correct!
False
Question 29
1 / 1 pts
The GAM for NGAs requires the collecting officer to issue an official receipt to
acknowledge the receipt of the notice of cash allocation.
True
Correct!
False
Question 30
1 / 1 pts
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!
True
False
Question 31
0 / 1 pts
All revenues shall be remitted to the BTr and included in the Special Fund, unless
another law specifically requires otherwise.
You Answered
True
Correct Answer
False
Question 32
1 / 1 pts
When cash flows are deferred, the fair value of the consideration receivable is its
present value.
Correct!
True
False
Question 33
1 / 1 pts
Taxes are compulsory payments, imposed on persons, properties or activities, intended
to provide revenue to the government. Taxes include fees, fines and penalties.
True
Correct!
False
Question 34
0 / 1 pts
According to the GAM for NGAs, the receipt of concessionary loans by government
entities may give rise to revenue recognition.
Correct Answer
True
You Answered
False
Question 35
1 / 1 pts
The constructive remittance of taxes withheld through the TRA gives rise to the
recognition of revenue.
Correct!
True
False
Question 36
1 / 1 pts
According to GAM for NGAs, revenue from exchange transactions are measured at the
amount of cash received.
True
Correct!
False
Question 37
0 / 1 pts
All revenues shall be remitted to the BTr and included in the General Fund, unless
another law specifically requires otherwise.
Correct Answer
True
You Answered
False
Question 38
1 / 1 pts
Payments to government entities in the form of checks are not allowed.
True
Correct!
False
Question 39
1 / 1 pts
Revenues of a government entity arise from exchange transactions only.
True
Correct!
False
Question 40
1 / 1 pts
The taxable event for income tax is the passage of the time period for which the tax is
levied.
True
Correct!
False
Question 41
1 / 1 pts
Which of the following qualitative characteristics does an entity most likely would need
to make some tradeoffs?
materiality and relevance
Correct!
Relevance and Reliability
Faithful representation and substance over form
understandability and comparability
Question 42
1 / 1 pts
Which of the following is tasked in keeping the general accounts of the government,
supporting vouchers, and other documents?
NGAs
Congress
Correct!
COA
DBM
Question 43
1 / 1 pts
Information loses this qualitative characteristics if it is not reported on a timely basis
materiality
Correct!
relevance
reliability
neutrality
Question 44
1 / 1 pts
These refer to the attributes that make information useful to users
Correct!
Qualitative characteristics
Fundamental principles
Quantitative characteristics
Usefulness characteristics
Question 45
1 / 1 pts
Which of the following is a unique requirement of government accounting that is not
required in the accounting for business entities?
The use of accrual basis of accounting
Correct!
The presentation of budget information in the financial statements
The use of double-entry recording system
The use of single-entry recording system
Question 46
1 / 1 pts
Mr. A, a government employee entrusted with the custody of government funds, was
instructed by Mr. B, a politician to release funds for the acquisition of a car as a birthday
gift for Mr. B's daughter who will be having her 18th birthday next week. To relieve Mr. A
from any liability, what should Mr. A do?
Mr. A shall release the fund, and then notify Mr. B, in writing, that his instruction is illegal
Mr. A shall release the fund but retains 20% commission
Correct!
Mr. A shall not release the fund but rather notify Mr. B, in writing, that his instruction is
illegal
Mr. A shall release the fund but requires Mr. B to promise, in writing, that the car shall
be returned to the government after his daughter's birthday
Question 47
1 / 1 pts
Government resources must be utilized efficiently and effectively in accordance with the
law. According to PD NO. 1445, who is directly responsible in implementing this policy?
Correct!
Head of the government agency
All government employees
All elected officials
COA
Question 48
1 / 1 pts
Bureau of Treasury is responsible for
Correct!
receiving and keeping national funds and managing and controlling the disbursements
thereof
formulation and implementation of the national budget with the goal of attaining the
nation's socio-economic objectives
promulgating accounting and auditing rules and regulations
directly implementing the projects of the government
Question 49
1 / 1 pts
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
Correct!
V, II, IV, I and III
V, IV, II, I and III
V, I, II, IV, and III
II, V, IV, I and III
Question 50
1 / 1 pts
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.
Aging of Due and Demandable Obligations
Special Allotment Release Order
Correct!
Budget Execution Documents
Statement of Approved Budget, Utilizations, Disbursements and Balances
Question 51
1 / 1 pts
It refers to the amount contracted by a duly authorized administrative officer for which
the government is held liable.
Allotment
Disbursements
Correct!
Obligation
Appropriation
Question 52
0 / 1 pts
Responsibility accounting requires all of the following except:
Correct Answer
separate books of accounts to segregate controllable and non-controllable costs
coding structure for responsibility centers
distinction between controllable and non-controllable costs
You Answered
identification of responsibility centers
Question 53
1 / 1 pts
Which of the following best describes the Notice of Cash Allocation (NCA)
Correct!
It is a from of authorization to a government agency to make disbursements out of
government funds.
It is a from of legislative authorization in the allocation of funds for specified purposes.
It is a notice received from the Congress that cash is allocated for the payment of
planned expenditures.
It is a from of authorization to a government agency to incur obligations on behalf of the
government.
Question 54
1 / 1 pts
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, II, V and III
IV, V, I, II and III
Correct!
IV, I, V, II and III
IV, I, V, III and II
Question 55
1 / 1 pts
Disbursements by government entities are most commonly made through
Cash
Credit Card
Correct!
MDS Checks
Petty Cash Fund
Question 56
1 / 1 pts
An authorization issued by the DBM to NGAs to incur obligations. It is also referred to
as Obligational Authority
Correct!
Allotment
Disbursement
Obligation
Appropriation
Question 57
1 / 1 pts
Expenditures to acquire long term assets are most likely classified as
MOOE
Correct!
CO
PS
FE
Question 58
1 / 1 pts
Which of the following accounts is credited when a government entity remits taxes
withheld to the BIR
Cash-Treasury/Agency Deposit, Regular
Correct!
Cash-Tax Remittance Advice
Cash-MDS Regular
Cash-Collecting Officer
Question 59
1 / 1 pts
The receipt of NCA is recorded in the
Books of Accounts only
None of the given choices
RANCA only
Correct!
Both Books of Accounts and RANCA
Question 60
0 / 1 pts
The Subsidy from National Government account is credited when recording a
receipt of allotment
You Answered
reversion of unused of NCA
Correct Answer
receipt of NCA
None of these
Question 61
1 / 1 pts
This type of expenditure pertains to all types of employee benefits
Capital Outlays CO
Financial Expenses FE
Correct!
Personnel Services PS
Maintenance and Other Operating Expenses MOOE
Question 62
1 / 1 pts
The receipt of an allotment is recorded by a government entity in the
Correct!
RAPAL and RAOD
ORS
RAOD and ORS
RAOD
RAPAL
Question 63
0 / 1 pts
The entries to record the constructive remittance of taxes withheld through tax
remittance advice include all of the following, except
debit to Due to BIR
You Answered
credit to Cash-Tax Remittance Advice
debit to Cash-Tax Remittance Advice
Correct Answer
debit to Subsidy from National Government
Question 64
1 / 1 pts
The various registries maintained by government entities are considered, technically,
as
Log books
Book of Accounts
General Ledgers
Correct!
Budget Records
Question 65
1 / 1 pts
Entity A received a Notice of Cash Allocation amounting to P625,000 for the year.
Unused NCA at the end of the period amounted to P6,000. Entity A remitted taxes
withheld to the BIR amounting to P48,000 through TRA. How much is the net financial
assistance/subsidy to be reported in the financial performance.
0
571,000
619,000
Correct!
667,000
Question 66
0 / 1 pts
The trial balance of a government entity show the following amounts:
Unadjusted TB: P2,753,000
Adjusted TB: P2,765,000
Statement of Financial Position (Debit Column): P1,880,000
Statement of Financial Performance (Credit Column): P1,137,000
How much is the surplus/(deficit) or net income or(loss) for the period?
885,000
You Answered
(743,000)
Correct Answer
252,000
(252,000)
Question 67
1 / 1 pts
Which of the following accounts is credited when a government entity remits
contributions to the GSIS, PhilHealth and Pag-IBIG?
Cash-Treasury/Agency Deposit, Regular
Cash-Collecting Officer
Correct!
Cash-MDS Regular
Cash-Tax Remittance Advice
Question 68
0 / 1 pts
Entity A, a government entity made disbursement for the travelling expense of its
personnel. These expenditures are most likely classified as
Correct Answer
Maintenance and Other Operating Expenses MOOE
You Answered
Personnel Services PS
Financial Expenses FE
Capital Outlays CO
Question 69
1 / 1 pts
According to the GAM for NGAs, all of the following criteria must be met before a
government entity recognizes revenue from sale of goods, except
it is probable that economic benefits will flow to the entity
the amounts of revenue and related costs can be measure reliably
Correct!
stage of completion can be measured reliably
significant risks and rewards of ownership of the goods are transferred to the buyer and
the entity does not retain control over those goods
Question 70
1 / 1 pts
When an amount already recognized as revenue becomes subsequently uncollectible, it
is
Correct!
recognized as expense
none of the given choices
recognized as adjustment to the revenue originally recognized
not recognized
Question 71
1 / 1 pts
A type of fund held by a government entity that is designated for special purposes
general fund
Correct!
special fund
fiduciary fund
trust fund
Question 72
1 / 1 pts
The receipt of which of the following may not give rise to revenue by a government
entity?
Notice of cash allocation
Tax Remittance Advice
Subsidy from another government entity
Correct!
Inter-agency fun transfer
Question 73
1 / 1 pts
Which of the following is a non-exchange transaction?
leasing
Correct!
collection of taxes
collection of tuition fees
rendering legal services
Question 74
1 / 1 pts
Imposition and collection of tax revenue is considered
donation
Correct!
non-exchange transaction
any of the choices
exchange transaction
Question 75
1 / 1 pts
Which of the following receipts of a government entity will give rise to revenue
recognition?
receipt of excess cash advance
receipt of refund for overpayment of expenses
receipt of performance bond
Correct!
receipt of subsidy from the national government or other national government agencies
Question 76
1 / 1 pts
Which of the following is not one of the fundamental principles for revenue under PD
No. 1445
Correct!
all collections of revenue must be in the form of cash, checks are not acceptable
recording of revenue in other types of funds shall be made only when authorized by law
all revenues shall be remitted to the BTr and included in the General Fund, unless
another law specifically allows otherwise
collections of revenue shall be properly acknowledged through pre-numbered official
receipts
Question 77
1 / 1 pts
Entity A sells goods with a list price of P100,000, on account. Credit term is 20% and
10%. Journal entry to recognize the revenue includes all of the following except
credit sales revenue P72,000
all of the given choices
Correct!
debit sales discount P28,000
debit accounts receivable P72,000
Question 78
1 / 1 pts
Gifts, donations and goods in-kind with condition are recognized
directly in equity
as revenue immediately upon the receipt thereof
as revenue measure at fair value only when actually received
Correct!
initially as liability and recognized as revenue only when condition is satisfied
Question 79
1 / 1 pts
Entity A enters into a long-term contract to provide services. The outcome of the
transaction can be estimated reliably and the progress on the contract can be measured
with sufficient reliability. According to PPSAS, how should the revenue from the contract
be recognize?
on a straight line basis over the contract term
only to the extent of costs that are expected to be recovered
Correct!
by reference to the stage of completion of the contract at the reporting date
full recognition of the contract price upon completion of the contract
Question 80
1 / 1 pts
According to the GAM for NGAs, interest revenue is recognized
on a straight line basis
when the entity's right to receive payment is established
in accordance with the substance of the relevant loan agreement
Correct!
on a time proportion basis using effective interest method
Quiz Score:
71 out of 80