1. Which of the following items are classified by a government entity as Inventory Held for Consumption?

OFFICE
SUPPLIES AND SIMILAR MATERIALS
2. 1st statement: Revenue from non-exchange transactions shall be measure at the amount of the increase in net
assets recognized by the entity unless it is also required to recognize a liability.
2nd statement: Revenue from exchange transactions shall be measured at fair value of the consideration
received or receivable. ONLY SECOND STATEMENT IS TRUE
3. It is an authorization issued by the DBM to NGAs to incur obligations. It is also referred to as Obligational
Authority. ALLOTMENT
4. It is the implementation of the national budget by different departments and release of allotments. BUDGET
EXECUTION
5. Which of the following statements is correct? WHEN CASH FLOWS ARE DEFERRED …
6. The entry to record the receipt of Notice of Cash Allocation (NCA) by a government entity is: NO ENTRY
7. One of the basic features in government accounting is THE ACCOUNTING OF MONEY COLLECTED IS NOT
SEPARATE …
8. 1st statement: Cash overage shall be taken up as Miscellaneous Income
2nd statement: Cash Overage that cannot be satisfactorily explained by the Collecting Officer shall be forfeited in
favour of the Collecting Officer. ONLY 1ST STATEMENT IS TRUE
9. In preparing its bank reconciliation at December 31, 2019, Entity A has available the following data:
Balance per bank statement, 12/31/19 38,075
Deposit in Transit, 12/31/19 5,200
Outstanding Checks, 12/31/19 6,750
Amount erroneously credited… 400
Bank Service charge for December 75
Entity A’s Adjusted cash in bank balance at December 31, 2019 is 36,125
10. Which of the following is recorded in the Obligation Request and Status (ORS)? ENTERING INTO EMPLOYMENT
CONTRACTS WITH EMPLOYEES
11. The receipt of subsidy from the National Government or other government agencies GIVES RISE TO THE
RECOGNITION OF REVENUE
12. Entity A acquires a biological asset for P100 equal to fair value, and incurs transaction cost of P10 on the
purchase. The cost to sell at the acquisition date are P20. Which of the following statements is correct? ENTITY
A RECOGNIZES THE PURCHASE ASSET AT P90
13. Entity A had the following bank reconciliation at March 31, 2017
…..
All reconciling items at March 31, 2017 cleared the bank in April. Outstanding checks at April 30, 2017 totaled
P7,000. There were no deposits in transit at April 30, 2017. What is the cash balance per books at April 30, 2017?
48,200
14. These are checks that become stale, voided or spoiled. CANCELLED CHECKS
15. Which of the following statements is incorrect? THE GAM FOR NGAS REQUIRES THE COLLECTING OFFICER TO
ISSUE AN OFFICIAL RECEIPT TO ACKNOWLEDGE THE RECEIPT OF THE NOTICE OF CASH ALLOCATION
16. Government expenditures classified as MOOE are those that PERTAIN TO VARIOUS OPERATING EXPENSES
OTHER THAN EMPLOYEE BENEFITS AND FINANCIAL EXPENSES
17. Which among the following is not true regarding dishonored checks? THE MAKING, DRAWING AND ISSUANCE
OF A CHECK PAYMENT OF WHICH IS REFUSED BY THE DRAWEE BECAUSE OF …
18. According to the PPSAS, a financial asset is recognized when AN ENTITY BECOMES A PARTY TO THE
CONTRACTUAL PROVISIONS OF THE INSTRUMENT
19. The receipt of an allotment is recorded by a government entity in the RAOD and RAPAL
20. Under the accrual basis of accounting, revenues are recognized when measurable and available to finance
expenditures of the current period. FALSE
21. The functions of the Commission on Audit do not include EXAMINING, AUDITING, AND SETTLING ALL
ACCOUNTS OF THE GOVERNMENT
22. On December 31, 2018, Entity A had the following cash balances:
Cash in banks 1,800,000
Petty Cash funds (all funds were reimbursed on 12/31/18) 50,000
Cash in Banks includes P600,000 of compensating balances against short-term borrowing arrangements at
December 31, 2018. The compensating balances are not legally restricted as to withdrawal by Entity A. in the
current assets section of the Entity A’s December 31, 2018 statement of financial position, what total amount
should be reported as cash? 1,850,000
23. Which of the following statements is correct? NO ADDITIONAL CASH ADVANCE SHALL BE GIVEN TO ANY
OFFICIAL OR EMPLOYEE UNLESS THE PREVIOUS CASH ADVANCE GIVEN TO HIM IS FIRST LIQUIDATED.
24. 1st statement: When goods are sold or services are rendered in exchange for dissimilar goods or services, the
exchange is not regarded as a transaction which generated revenue.
2nd statement: When goods or services are exchanged or swapped for goods or services which are of a similar
nature and value, the exchange is regarded as a transaction which generates revenue. BOTH STATEMENTS ARE
FALSE

25. This account is credited when government entities remit collections to the National Treasury CASH-COLLECTING
OFFICERS
26. The term “fund” as used in government or fund accounting usually denotes a(an) APPROPRIATION AUTHORIZED
BY THE LEGISLATURE FOR USE OF AN AGENCY, BUREAU OR OFFICE
27. The document outlines the priority areas of government activity applicable to the budget year. BUDGET
MESSAGE
28. Which of the following is not one of the objectives of expenditures under the GAM for NGAs? CF
29. When estimated revenue account of a government unit is closed out at the end of the fiscal year, the excess of
revenue over estimated revenues is DEBITED TO FUND BALANCE
30. Which of the following is not one of the necessary closing entries of a government entity? CLOSING THE NET
BALANCE OF “REVENUE AND EXPENSE SUMMARY” ACCOUNT TO THE “SUBSIDY FROM THE NATIONAL
GOVERNMENT” ACCOUNT.
31. The third step in the Budget Preparation phase of the Budget Cycle is PRESIDENT’S BUDGET
32. 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? ENTITY A IS NOT
COMPLIANT WITH THE REQUIREMENTS OF THE GAM FOR NGAS.
33. Entity A, a government entity, maintains a petty cash fund with an established amount of P40,000. During the
period, Entity A disburses P10,000 for office supplies from the petty cash fund. The entry to record the
disbursement is NONE OF THESE
34. The issuer of a financial instrument shall classify the instrument or its component parts on initial recognition as a
ANY OF THE CHOICES
35. Relief and other welfare goods held for distribution are most likely to be classified by a government entity as
INVENTORY HELD FOR DISTRIBUTION
36. Under responsibility accounting, non-controllable costs are COSTS INCURRED INDIRECTLY AND ALLOCATED TO
A RESPONSIBILITY LEVEL.
37. According to P.D. No. 1445, government personnel entrusted with the custody of government resources (choose
the incorrect statement) ARE DIRECTLY RESPONSIBLE TO THE PUBLIC FOR THE EFFICIENT AND EFFECTIVE
UTILIZATION THEREOF.
38. 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. NOTICE OF TRANSFER OF ALLOCATION
39. A government may have two or more General Funds FALSE
40. Governmental accounting systems of state and local government entities (SLGs) should be organized and
operated on which of the following bases? FUND
41. The receipt of a disbursement authority in the form of Non-Cash Availment Authority (NCAA) is debited to which
of the following accounts? ACCOUNTS PAYABLE
42. Which of the following best describes “Not yet due and demandable” Obligations. OBLIGATIONS ALREADY
INCURRED AND RECORDED IN THE REGISTRIES BUT NOT YET IN THE ACCOUNTING BOOKS BECAUSE THE
ACCOUNTING RECOGNITION CRITERIA FOR LIABILITIES ARE NOT YET MET.
43. Entity A purchased a machine costing P125,000 for its manufacturing operations and paid shipping costs of
P20,000. Entity A spent an additional P10,000 testing and preparing the machine for use. What amount should
Entity A record as the cost of the machine? 155, 000
44. A government entity’s biological asset has fair value less costs to sell of P100,000 and P120,000 at the beginning
and end of the period, respectively. The yes-end adjusting entry will most likely include CREDIT TO UNREALIZED
GAIN OF P20,000 TO BE RECOGNIZED DIRECTLY IN EQUITY.
45. Entity A receives a donation of scientific equipment from an international body. If no condition is attached to the
donation, how should Entity A account for the donation? RECOGNIZE IT IMMEDIATELY AS INCOME MEASURED
AT THE EQUIPMENT’S FAIR VALUE AT THE ACQUISITION DATE.
46. Zero base budget is: AN AUTHORIZATION ISSUED TO ALLOW THE USE OF ALLOTMENTS TO THE LAST CENTAVO
…
47. The coverage of the GAM for NGAs includes all of the following except: BASIC CONCEPT USED IN AUDITING THE
ACCOUNTS AND FINANCIAL REPORTS OF GOVERNMENT ENTITIES.
48. No journal entry is made for a disbursement under this mode of disbursement. eMDS
49. The GAM for NGAs is promulgated by the COA under the authority … PHILIPPINE CONSTITUTION
50. Proceeds of borrowing either from domestic or foreign sources are considered income of the national
government because IT FORMS PART OF THE CURRENT SURPLUS UNAPPROPRIATED OF THE GOVERNMENT
WHICH SHOULD BE BUDGETED AND APPROPRIATED
51. When does a government entity recognize dividend income? WHEN THE ENTITY’S RIGHT TO RECEIVE PAYMENT
IS ESTABLISHED
52. 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. SPECIFIC IDENTIFICATION
53. A fund in which the assets are administered by the Government in a fiduciary capacity. TRUST FUND
54. What are the rules on the use of government funds? ALL OF THESE
55. Which department prepares the national budget, which serves as the basis of the General Appropriations Act?
LEGISLATIVE DEPARTMENT
56. Which among the following is not true? WHEN THE INFLOW OF CASH OR CASH EQUIVALENTS RECEIVED OR
RECEIVABLE IS DEFERRED, THE FAIR VALUE OF THE CONSIDERATION IS EQUAL TO THE NOMINAL ACCOUNT OF
CASH RECEIVED OR RECEIVABLE
57. Which of the following is not true regarding cash advances for travel? OFFICIALS AND EMPLOYEES NOT
AUTHORIZED TO TRAVEL MAY BE GRANTED CASH ADVANCE IN CERTAIN CASES TO COVER TRAVELING
EXPENSES
58. 1st statement: Interests shall be recognized as they are earned in accordance with the substance of the relevant
agreement.
2nd statement: dividends or similar distributions shall be recognized when the shareholder’s or the entity’s right
to receive payment is established. ONLY 2ND STATEMENT IS TRUE
59. The agency responsible with the duty to keep the general accounts of the government, promulgate accounting
rules and regulations and to submit to the president and to congress an annual financial report of the
government including its subdivisions COMMISION ON AUDIT
60. It is the expenditure authority derived from appropriation laws, government ordinances, and other decisions
related to the anticipated revenue or receipts for the budgetary period APPROVED BUDGET
61. Government funds classified according to purpose for which they may be used : GENERAL FUNDS AND SPECIAL
FUNDS

12.Which of the following statements is correct?

- No additional cash advance shall be given to any official or employee
unless the previous cash advance is given to him is first liquidated
13.A government entity’s biological asset has fair values less costs to sell of P100,000
and P200,000 at the beginning and end of the period, respectively. The year- end
adjusting entry will most likely include
- A credit to unrealized gain of P20,000 to be recognized in surplus or deficit
14.Zero base budget is
- an authorization issued to allow the use of allotments to the last centavo or
zero balance
15.The GAM for NGAs is promulgated by the COA under the authority conferred to it by
the ANS: Philippine Constitution
16.One of the basic features of government accounting is
- Budgetary and real accounts are used and estimates are recorded and
accounted for.
17.Under the accrual basis of accounting, revenues are recognized when measurable
and available to finance expenditures of the current period. FALSE
18.Which department prepares the national budget, which serves as the basis of the
General Appropriations Act? ANS: Executive Department
19.What are the rules on the use of government funds? – All of these
20.1
st statement: Revenue from non-exchange transactions shall be measured at the
amount of the increases in net assets recognized by the entity, unless it is also
required to recognize a liability. FALSE
2
nd statement: Revenue from exchange transactions shall be measured at fair value
of the consideration received or receivable. TRUE
21.Which of the following statements is correct?
- Under the Advice to Debit Account (ADA) mode of disbursement, payments
from the government entity are directly credited to the bank account of the
payees through bank transfers
22.1
st statement: Interest shall be recognized as they are earned in accordance with the
substance of the relevant agreement. FALSE
2
nd statement: Dividends or similar distributions shall be recognized when the
shareholder’s or the entity’s right to receive payment is established. TRUE
23.When estimated revenue account of a government unit is closed out at the end of
the fiscal year, the excess of revenues over the estimated revenues is Debited to
Fund Balance
24.According to the PPSAS, a financial asset is recognized when an entity becomes a
party to the contractual provisions of the instrument
25. Recording in the Obligation Request and Status (ORS) is made when all of the
choices
26.The Receipt of a disbursement authority in the form of Non- Cash Availment
Authority (NCAA) is debited to which of the following accounts? Accounts Payable
27.This account is credited when the government entities remit collections to the
National Treasury Cash- Collecting Officer
28. Which among the following is not true regarding dishonored checks?
29. This document outlines the priority areas of government activity applicable to the
budget year. Budget Call
30. 1st Statement: Cash Overage shall be taken up as Miscellaneous Income. TRUE
2nd Statement: Cash overage that cannot be satisfactorily explained by the
Collecting Officer shall be forfeited in favor of the collecting officer. FALSE
31. If the unadjusted balance of check per bank statement is less than the adjusted
balance and there no other reconciling items or errors, the difference is most likely
caused by Deposits in transits
32. Entity A, a government entity, records purchases of items of inventory under the
"purchases" account and "freight-in" account. Which of the following statement is
correct? Entity A is not compliant with the requirements of GAM for NGAs
33. Entity A purchased a machine costing P125,000 for its manufacturing operations
and paid shipping costs of P20,000. Entity A spent an additional P10,000 testing and
preparing the machine for use. What amount should Entity A record as the cost of
machine? 155,000
34. Transactions and events are recognized in the accounting records and recognized
in the financial statements of the periods to which they relate. Accrual Basis of
Accounting
35. For the Government entities, the
capitalization threshold for PPE is more than
15,000
36. It is an authorization issued by the DBM to NGAs to incur obligations. It is also
referred to as Obligational Authority Allotment
37. The term "fund" as used in the government or fund accounting usually denotes a
(an) appropriation authorized by the legislature for use of an agency, bureau or
office.
38. The agency responsible with the duty to keep the general ledger accounts of the
government, promulgate accounting rules and regulations and to submit to the
president and to Congress….. Commission on Audit
39. Which of the following statement is incorrect? The GAM for NGAs requires the
collecting officer to issue an official receipt to acknowledge the receipt of the
NCA
40. Arrange the following steps in the budget process according to the sequence that
they appear in the budget cycle Appropriation, Allotment, Incurrence of Obligation,