Quiziz Compilation

Chapter 1

1. It encompasses the processes of analyzing, recording, classifying, summarizing and communicating

all transactions involving the receipt and disposition of government funds and property, and
interpreting the results thereof.
a. Government accounting
b. Government reporting
c. Government auditing
d. Tax accounting

2. The GAM for NGAs is promulgated by the

a. Commission on Accounting (COA)
b. Commission on Audit (COA)
c. Board of Accountancy (BOA)
d. Bureau of Internal Revenue (BIR)

3. The Commission on Audit (COA) is responsible for

a. the formulation and implementation of the national budget with the goal of attaining the
nation’s socio-economic objectives.
b. receiving and keeping national funds and managing and controlling the disbursements thereof.
c. directly implementing the projects of the government.
d. promulgating accounting and auditing rules and regulations.

4. Which of the following is not charged with government accounting responsibility?

a. Commission on Audit
b. Bureau of Internal Revenue
c. Non-stock, non-profit private hospital
d. Department of Budget and Management

5. Which of the following qualitative characteristics may be sacrificed when reporting information on a
timely basis?
a. Relevance
b. Reliability
c. Substance over form
d. Faithful representation

6. According to the GAM for NGAs, information has this qualitative characteristic if it can be used to
assist in evaluating past, present or future events or in confirming or correcting past evaluations.
a. Feedback value
b. Predictive value
c. Materiality
d. Relevance
7. This refers to the comparability between the financial statements of different entities?
a. Inter-comparability
b. Intra-comparability
c. Horizontal comparability
d. Vertical comparability

8. When the substance of a transaction or event differs from its legal form, the entity should report the
transaction’s or event’s
a. substance
b. legal form
c. a trade-off between a and b
d. either a or b, based on their significance

9. The implication that users must be informed of the entity’s policies, changes to those policies, and
the effects of those changes refers to
a. Comparability
b. Completeness
c. Understandability
d. Reliability

10. In the financial reporting system of the national government, to which of the following shall an entity
reconciles its cash records?
a. Commission on Audit
b. Bureau of Treasury
c. Department of Budget and Management
d. Office of the President

Chapter 2

1. Which of the following approaches to budget preparation provides the best internal control?
a. Incremental budgeting
b. Zero-sum budgeting
c. Top-down budgeting
d. Zero-based budgeting

2. This approach to budgeting requires the justification of items in the budget irrespective of whether
they are new or carried over from the previous year.
a. Zero-based budgeting
b. Bottoms-up budgeting
c. Incremental budgeting
d. Bottoms-down budgeting

3. Which of the following is correct regarding zero-based budgeting?

 a. Several parties participate in the budget preparation starting from the lowest levels of the
government to the highest levels.
b. All zeroes in the budget are omitted.
c. All proposed programs and expenditures in the upcoming year must be new. Programs and
expenditures in the previous year should never be carried over to the next year.
d. The current year’s budget is formulated without regard to the previous year’s budget.

4. Which of the following would most likely comes first in the budget process?
a. Budget accountability report
b. President’s enactment of the budget
c. Presentation to the Office of the President
d. Budget Call from the DBM

5. Which of the following would most likely comes last in the budget process?
a. Budget accountability reports
b. Allotment
c. Disbursements
d. Performance review

6. Entity A, a government entity, receives authorization to disburse funds not to exceed ₱1B in a
specified period. This event can be described as
a. Notice of Cash Allocation
b. Allotment
c. Appropriation
d. Adontknowcation

7. Entity A, a government entity, receives notice that out of its ₱10B approved budget for the year,
Entity A can incur obligations up to ₱4B in the first quarter. This event can be described as a. Notice
of Cash Allocation
b. Allotment
c. Appropriation
d. Amnotsurecation

8. Entity A, a government entity, receives notice that for the current year, the maximum amount it can
spend on maintenance and other operating expenses is ₱10B. This event can be described as
a. Notice of Cash Allocation
b. Allotment
c. Appropriation
d. Budgetication

9. After receiving its obligational authority amounting to ₱4B, Entity A enters into binding agreements
for the eventual payments of a total sum of ₱3B. The “₱3B” event can be described as a.
Disbursement
 b. Allotment
c. Disbursement authority
d. Obligation

10. It is a part, segment, unit or function of a government agency, headed by a manager, who is
accountable for a specified set of activities.
a. Responsibility Accounting
b. Responsibility Center
c. Budget Center
d. Call Center

Chapter 3
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

11. The journal entry to record the billing of revenue (e.g., Communications Network Fees) is
a. Accounts receivable xxx
Communications Network Fees xxx
b. Cash-Collecting Officers xxx
Communications Network Fees xxx
c. Cash-Modified Disbursement System (MDS), Regular xxx
Communications Network Fees xxx
d. Accounts receivable xxx
Subsidy from National Government xxx

12. The journal entry to record the receipt of Notice of Cash Allocation is
a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx b. Cash-Collecting Officers xxx
Subsidy from National Government xxx c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx d. No journal entry.
13. The journal entry to record the receipt of appropriation is
a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx b. Cash-Collecting Officers xxx
Subsidy from National Government xxx c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx d. No journal entry.

14. The journal entry to record the receipt of allotment is

a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx b. Cash-Collecting Officers xxx
Subsidy from National Government xxx c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx d. No journal entry.

15. The entry to record the reversion of unused NCA at the end of the year is
a. Subsidy from National Government Cash-Modified Disbursement xxx
System (MDS), Regular xxx b. Accumulated Surplus/(Deficit) xxx Cash-
Treasury/Agency Deposit,
Regular xxx c. Subsidy from National Government xxx
Cash-Collecting Officers xxx d. No journal entry.

16. The entry to record the remittance of contributions to the GSIS, Pag-IBIG or PhilHealth is
a. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Tax Remittance Advice xxx b. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Collecting Officers xxx c. Due to GSIS/ Pag-IBIG/ PhilHealth xxx Cash-Modified
Disbursement
System (MDS), Regular xxx d. No journal entry.

17. The entry to record the liquidation of payroll fund is

a. Salaries and Wages, Regular xxx
Personal Economic Relief Allowance (PERA) xxx
Due to BIR xxx
Due to GSIS xxx
Due to Pag-IBIG xxx
Due to PhilHealth xxx
Due to Officers and Employees xxx b. Advances for Payroll xxx
Cash-Modified Disbursement
System (MDS), Regular xxx c. Due to Officers and Employees xxx
Advances for Payroll xxx d. Cash-Collecting Officers xxx
Advances for Payroll xxx

18. The entries to record the constructive remittance of taxes withheld to the BIR and the
constructive receipt of NCA for the TRA include
a. Cash-Tax Remittance Advice xxx
Due to BIR xxx b. Subsidy from National Government xxx
Cash-Tax Remittance Advice xxx c. a and b
d. None of these.
19. The entry to close the “Cash-Treasury/Agency Deposit, Regular” account at the end of the
period is
a. Accumulated Surplus/(Deficit) xxx Cash-Treasury/Agency Deposit,
Regular xxx b. Subsidy from National Government xxx Cash-
Treasury/Agency Deposit,
Regular xxx c. Cash-Collecting Officers xxx
Cash-Treasury/Agency Deposit,
Regular xxx d. None of these. The account is not closed.

20. The journal entry to record the collection of unbilled tax revenue (e.g., Travel Tax) through direct
deposit in Authorized Agent Banks is
a. Accounts Receivable xxx
Travel Tax xxx b. Cash-Modified Disbursement System (MDS), Regular
Travel Tax xxx xxx c. Cash-Collecting Officers xxx
Travel Tax xxx d. Cash-Treasury/Agency Deposit, Regular xxx
Travel Tax

Chapter 4

1. A government entity recognizes revenue from exchange or non-exchange transactions. Which

of the following may not give rise to revenue by a government entity?
a. Receipt of military equipment as donation from a foreign government.
b. Receipt of cash donation from an international organization.
c. Receipt of free trainings and seminars regarding process technology on farming from an
international organization.
d. Receipt of a bequest from the king of a foreign realm.

2. All of the following give rise to the recognition of revenue from non-exchange transaction except
a. sale of goods c. fines and penalties
b. taxes d. donation of goods in-kind

3. According to P.D. 1445, all revenues of an entity shall be remitted to the National Treasury and
included in the
a. General Fund c. National Fund
b. Special Fund d. Official Fund

4. Remittances of collections to the National Treasury are recorded as a debit to which of the
following accounts
a. Cash — Collecting Officers
b. Cash-Treasury/Agency Deposit, Regular
c. Cash-Modified Disbursement System (MDS), Regular
d. Subsidy from National Government

5. The national government received a foreign grant conditioned on the construction of a public
infrastructure. Entity A was chosen as the implementing agency. When the national government
received the grant, the entry in the BTr's books included a
a. credit to the "Subsidy from National Government" account.
b. debit to the "Cash — Modified Disbursement System (MDS), Regular" account.
c. credit to the "Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas" account.
d. credit to the "Other Deferred Credits" account.

6. At the end of the period, the "Cash-Treasury/Agency Deposit, Regular" account is closed to the
a. Subsidy from National Government account.
b. Accumulated Surplus or Deficit account.
c. Cash-Modified Disbursement System (MDS), Regular account.
d. This account is not closed.

7. Which of the following does not give rise to revenue from assistance or subsidy?
a. Inter-agency Fund Transfer
b. Notice of Cash Allocation
c. Tax Remittance Advice
d. Non-Cash Availment Authority

8. According to P.D. 1445,

a. Amounts received in trust and from business-type activities of the government may be
separately recorded.
b. All revenues of an entity shall be retained by the entity and included in its General Fund, unless
another law specifically allows otherwise.
c. A collecting officer shall immediately issue a temporary receipt upon collecting a payment of any
nature.
d. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash
receipts, the BIR may approve, upon request, the exemption from the use of accountable forms.

9. According to the GAM for NGAs, revenue includes only those that are received or receivable by
the entity in its own account. Accordingly, receipts on behalf of another entity are
a. recorded as liability.
b. recognized as revenue.
c. recorded only in the registries but not in the books of accounts.
d. remitted only through the use of the TRA.

10. Government entities and business entities use the same accounting treatment for all of the
following except
a. trade discounts allowed to customers.
b. recognizing revenue from royalty agreements.
c. recognizing revenue from dividends.
d. remittance of taxes withheld to the BIR

Chapter 5

1. Which of the following shall certify the availability of allotment before obligations can be incurred
and disbursement are made?
- Chief Accountant
- Budget Officer
- COA Auditor
- Head Agency
2. Which of the following shall certify the availability of funds and completeness of supporting
documents before the Head of Agency or his/her authorized representative can enter into
contracts that obligate the government for the eventual payment of government funds?
- COA, Auditor jointly with DBM
- BTr
- Budget Officer
- Chief Accountant
3. All Disbursement Vouchers (DVs) or Payroll shall be approved by
- Budget Officer
- Head of Agency
- Chief Accountant
- COA Auditor
4. Which of the following is not one of the modes of disbursements by a government entity?
- Check
- Payment through short messaging system (SMS)
- Credit card
- Online payment
5. Payments of checks that are chargeable against the Treasury Account are credited to the
- Cash-Modified Disbursement System (MDS) account
- Modified Disbursement System Checks
- Commercial Checks
- Advice to Debit Account

6. According to the GAM for NGAs, cash disbursement are made through
- Direct cash payment by collecting officers to payees
- Direct cash payments by the Head of Agency to the payees
- Any of these
- Cash advances to authorized personnel

7. Which of the following statements regarding the disbursement of government funds is incorrect?
- Transfer of cash advance from one officer to another is prohibited
- No additional cash advance shall be given to any official or employee unless the previous cash
advance given to him is first liquidated
- A cash advance shall not be used to encash checks or to liquidate a previous cash advance
- Officials and employees authorized to travel shall be granted cash advance to cover travelling
expenses. The amount granted shall be accounted for as “Due to Officers and Employees.”

8. It is an authority issued by an agency’s Central Office to its regional and operating units to cover
the latter’s cash requirements.
- Tax Remittance Advice (TRA)
- Cash Disbursement Ceiling (CDC)
- Notice of Cash Allocation (NCA)
- Notice of Transfer of Allocation (NTA)
9. Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of disbursement?
- Dr) Accounts Payable Cr) Cash – Modified Disbursement Cr) System (MDS), Regular
- Dr) Accounts Payable Cr) Cash – Constructive Income Cr) Remittance
- Dr) Accounts Payable Cr) Subsidy from National Government
- None of these
10. Entity A makes payment through bank transfer. This mode of disbursement is most likely
through the use of a(an)
- Commercial check
- MDS check
- Credit card
- Advice to Debit Account

Chapter 6

1. It is a report that is prepared for the purpose of bringing the balances of cash per records and
per bank statement into agreement.
-bank reconciliation statement
-bank statement
-bank balance report
-all of these

2. If the unadjusted balance of cash per bank statement is greater than the adjusted balance and
there no other reconciling items or errors, the difference would most certainly be caused by a

-a. Credit memo

-b. Debit memo
-c. Deposits in transit
-d. Outstanding checks

3. Which of the following does not qualify as cash equivalent for a government entity?

-Money market placement with an original term of 1 year but matures within 3 months after the
reporting date.
-Money market placement with an original term of 3 months.
 -Temporary investments in stocks that are expected to be sold within 1 month after the reporting
date.
-All of these qualify as cash equivalents.

4. Entity A estimates a risk of loss on a recognized asset at 20%. However, Entity A can only
accept a risk of 5%. Entity A then enters into a forward contract to offset the excess risk of 15%.
This process is best described as

-Risk management
-Forward hedging
-Hedge accounting
-Process risk hedge

5. Which of the following may not be included as part of cash in the note disclosures?

-Post-dated checks drawn

-Unreplenished petty cash fund consisting of only the coins and currencies held as at the
reporting -date
-Issued checks that were cancelled because they became stale
-Treasury bills acquired 3 months before maturity date

6. The entry to record a disbursement from the petty cash fund is

-Dr) Expense accounts Cr) Cash-Modified Disbursement System Cr) (MDS), Regular<br />
-Dr) Expense accounts Cr) Petty Cash
-Dr) Expense accounts Cr) Cash-Collecting Officers
-Dr) Expense accounts Cr) Cash-Treasury/Agency Deposit, Regular
-None of these.

7. According to the GAM for NGAs, government entities shall prepare bank reconciliations

-on a daily basis

-on a monthly basis
-only at year-end
-only as needed

8. Which of the following statements is incorrect regarding the accounting for unreleased checks
by a government entity?

-Unreleased checks are reverted back to cash.

-Unreleased checks are physically cancelled.
-The accounting procedures for unreleased checks prescribed under the GAM for NGAs apply
only to commercial checks.
-At the start of the year, a reversing entry is made for the unreleased checks in the previous
year.

9. All of the following may cause the cancellation of a check drawn by a government entity except

-The check becomes stale.

-Wrong spelling or unnecessary markings on the check.
 -The check is dishonored.
-The check is prepared using a pen with red ink.

10. It is a hedge of the exposure to changes in fair value of a recognized asset or liability or an
unrecognized firm commitment, or an identified portion of such an asset, liability or firm
commitment, that is attributable to a particular risk and could affect surplus or deficit.

-Fair value hedge

-Hedge of a recognized asset or liability
-Cash flow hedge
-Hedge of a net investment in a foreign operation