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Govacc-QUIZ - acctg

Bachelor of Science in Accountancy (Mary the Queen College )

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

communicating all transactions involving the receipt and disposition of government funds and
property, and interpreting the result thereof: GOVACC
2. The GAM for NGAS is promulgated by the: COA
3. The COA is responsible for: PROMULGATING ACCOUNTING AND AUDITING RULES AND
REGULATION
4. Which of the following is not charged with government accounting responsibility?: NON
STOCK, NON PROFIT PRIVATE HOSPITAL
5. Which of the following qualitative characteristics may be sacrificed when reporting
information on a timely basis?: RELIABILITY
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: RELEVANCE
7. This refers to the compatibility between the financial statements of different entities: INTER-
COMPARABILITY
8. When substance of a transaction or event differs from its legal form, the entity should report
transaction’s of event’s: SUBSTANCE
9. The implication that users must be informed of the entity’s policies, changes to those policies
and effects of those changes refers to: COMPARABILITY
10. In the financial reporting system of the national gov’t, to which of the ff. shall an entity
reconciles its cash records?: BTr

1. Which of the following approaches to budget preparation provides the best internal control?:
TOP- DOWN 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: ZERO-BASED BUDGETING
3. Which of the ff would most likely comes first in the budget process?: Budget Call from the DM
4. Which of the ff would most likely comes last in the budget process?: DISBURSEMENTS
5. Entity A, a gov’t entity, receives authorization to disburse funds not to exceed P1B in a specified
period. This event can be described as: NOTICE OF CASH ALLOCATION

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6. Entity A, a gov’t entity, receives notice that out of its P10B approved budget for the year, Entity
A can incur obligations up to P4B in the first quarter. ALLOTMENT
7. Entity A, a gov’t entity, receives notice that for the current year, the maximum amount it can
spend on maintenance and other operating expenses is P10B. APPROPRIATION
8. After receiving its obligational authority amounting to P4B, Entity A enters into binding
agreements for the eventual payments of a sum of P3B. The “3B”event can be describe as:
DISBURSEMENT
9. It is part, segment, unit or function of a government agency headed by a manager, who is
accountable for a specified set of activities: RESPONSIBILITY CENTER

1. Which of the ff records is technically not considered an accounting book? REGISTRY OF

APPROPRIATION AND ALLOTMENTS
2. Which of the ff is (are) affected when a gov’t entity incurs obligations?: ORS and RAOD
3. Which of the following are affected when gov’t entity makes disbursements to settle recorded
obligations?: ORS, RAOD, JOURNAL and LEDGER
4. Which of the following accounts is most likely credited when a gov’t entity remits its collection to the
National Treasury: CASH- COLLECTING OFFICERS
5. This event is recorded in the books of account: CLOSING ENTRIES
6. The receipt of allotment is recorded in the: RAPAL and RAOD
7. According to the GAM for NGAS, the registries are (choose the incorrect): MAINTAINED BY THE
ACCOUNTING UNIT OF GOV’T ENTITY
8. The 8 digit Revised Chart of accounts (RCA) Code for the account “Subsidy from National Gov’t”starts
with number: 4
9. Which of the following is not a form of disbursement authority?: ALLOTMENT
10. The NCA is recorded in the: RANCA and JOURNAL LEDGER

1. A gov’t entity recognizes revenue from exchange of non-exchange transaction. Which of the ff
may not given rise to revenue by gov entity?: RECEIPT OF A BEQUEST FROM THE KING OF A
FOREIGN REALM.
2. All the ff give rise to the recognition of revenue from non-exchange transaction except: SALE OF
GOODS

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3. According to P,D 1445, all revenues of an entity shall be remitted to the National Treasury and
included in the: NATIONAL FUND
4. Remittances of collections to the National Treasury are recorded as debit to which of the
following accounts: SUBSIDY FROM NATIONAL GOV’T
5. The national gov’t received a foreign grant conditioned on the construction of a public
infrastructure. Entity A was chosen as implementing agency. When the national gov’t received
the grant, the entry in the BTr’s books included a: CREDIT TO THE “SUBSIDY FROM NATIONAL
GOV’T”
6. At the end of the period, the cash treasury/agency deposit regular account is closed to the:
ACCUMULATED SURPLUS OR DEFICIT ACCOUNT
7. Which of the ff does not give rise to revenue from assistance or subsidy?: INTER-AGENCY FUND
TRANSFER
8. According to P.D. 1445: ALL THE REVENUES OF AN ENTITY SHALL BE RETAINED BY THE ENTITY
AND INCLUDED IN GENERAL FUND, UNLESS ANOTHER LAW SPECIFICALLY ALLOWS OTHERWISE.
9. According to 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: RECORDED AS
LIABILITY
10. Gov’t entities and business entities used the same accounting treatment for all except: TRADE
DISCOUNTS ALLOWED TO CUSTOMERS.

JE101
1. Entity A grants a cash advance of P2,000 for the travelling expenses of an officer. Actual expenses
amount to P1,800. The officer remits the excess cash advance.
The entry to record the grant of cash advance is: DR. ADVANCES TO OFFICER AND EMPLOYEES 2K
CR.CASH – MDS, REGULAR 2K
2. The disbursement is recorded in the: Journal ledger, RAOD, ORS
3. The entry to record the liquidation of the cash advance is: DR. TRAVELLING EXPENSE – FOREIGN
1.8K CR. ADVANCES TO OFFICERS AND EMPLOYEES 1.8K

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4. The entry to record the receipt and deposit of refund of excess cash advance is: DR. CASH – CO
200 CR. ADVANCES TO O & E and DR. CASH – TREASURY/ AGENCY DEPOSIT, REGULAR 200 CR.
CASH – CO
5. Which of the ff does not affect the amount of surplus or deficit that is reported in the statement
of financial performance?: CLOSING OF THE “CASH – TREASURY/ AGENCY, REGULAR”ACCOUNT
6. Entity A, a gov’t entity, has an unused NCA of P 50,000 at the end of the current year. The entry
to record the reversion of unused NCA: DR. SUBSIDY FROM NATIONAL GOV’T 50K CR. CASH –
MDS, REGULAR 50K
7. During the period, Entity A, a gov’t entity, withheld 100k taxes from its payments to employees
and suppliers. On September 14 of the current year, Entity A remitted the taxes withheld to the
BIR through the tax remittance advice. The entry to record the remittance includes: NONE
8. The entry to record the granting of cash advance for payroll fund is: DR. ADVANCES FOR
PAYROLL CR. CASH – MDS, REGULAR
9. Entity A, a government entity, bills P200k for communication network fees. Which of the ff is the
correct entry for billing? DR. AR 200k CR. COMMUNICATION NETWORK FEES
10. The pro – forma entry to record the liquidation of the payroll fund is: DR. DUE TO OFFICERS AND
EMPLOYEES CR. ADVANCES FOR PAYROLL
11. The receipt of an inter – agency fund transfer is recorded as: DR. CASH – COLLECTING OFFICERS
CR. DUE TO (CENTRAL OFFICE, REGIONAL OFFICE, OPERATING UNITS OR OTHER FUNDS)
12. The entry to close the “cash – treasury/ agency deposit, regular” account at the end of the
period is: DR. ACCUMULATED SURPLUS/ (DEFICIT) CR. CASH – TREASURY/ AGENCY DEPOSIT,
REGULAR
13. The pro – forma entry to record the remittance of the contributions to the GSIS, Pag- IBIG or
PhilHealth is: DR. DUE TO GSIS/ Pag – IBIG/ PhilHealth CR. CAS – MDS, REGULAR
14. The entry to record the receipt of a disbursement authority in the form of CDC is: DR. CASH –
CONSTRUCTIVE INCOME REMITTANCE CR. SUBSIDY FROM NATIONAL GOV’T
15. An entity accrues salaries and wages after approval of payroll. The entry is: DR. SALARIES AND
WAGES, REGULAR CR. PERA DUE TO BIR, GSIS, PAG – IBIG, PHILHEALTH, OFFICERS AND
EMPLOYEES
16. Entity A, a gov’t entity, received its notice of cash allocation amounting to 5M for the year. The
JE: DR. CASH – MDS, REGULAR 5M CR. SUBSIDY FROM NATIONAL GOV’T 5M

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17. Entity A, a gov’t entity receives notice of its 10M appropriation for the year. The journal entry to
record: NO JE
18. The journal entry to record the collection of unbilled tax revenue through the direct deposit in
authorized agent banks is: DR. CASH – TREASURY/ AGENCY DEPOSIT, REGULAR CR. TRAVEL TAX
19. Which of the ff reflects a NCAA mode of disbursement?: DR. AP CR. SUBSIDY FROM NATIONAL
GOV’T
20. A journal entry with credit to the “MDS, Regular” account will most likely be recorded in the:
CHECK DISBURSEMENT JOURNAL
21. Entry to record receipts of NCA by government entity includes a debit to: MDS, REGULAR
22. Credited when the government entity remits taxes withheld to BIR? CASH – TAX REMITTANCE
ADVICE

MIDTERM SUMMATIVE

1. This registry shall maintained by appropriation act, by fund cluster, by Major fund out put or
program/ Activity/ Project for personnel services: REGISTRY OF ALLOTMENTS, OBLIGATIONS AND
DISBURSEMENTS – PERSONNEL SERVICES
2. Which of the ff statements best differentiates the gov’t accounting process from accounting
process of a business entity? THE GOV’T ACCTG PROCESS IS SIMILAR TO THAT OF A BUSINESS
ENTITY EXCEPT THAT IT INCORPORATES BUDGETARY CONTROLS SUCH AS RECORDING IN THE
BUDGET REGISTRIES AND PREPARING PERIODIC BUDGET ACCOUNTABILITY REPORTS.
3. It is government – wide harmonized, budgetary, treasury, and accounting code classification:
UACS
4. Which of the ff statements best describes the various Registries maintained by government
entity?: THE REGISTRIES PRIMARILY SERVE AS AN INTERNAL CONTROL FOR CONTROLLING AND
MONITORING THE CONFORMANCE OF ACTUAL RESULTS WITH THE APPROVED BUDGET.
5. Which is a budget execution document? FINANCIAL PLAN
6. In the RCA, which of the ff is intra- agency receivable? DUE FROM OPERATING UNITS
7. In RCA, which is a service income account? CLEARANCE AND CERTIFICATION FEES
8. Under responsibility accounting, non – controllable costs are: COST INCURRED INDIRECTLY AND
ALLOCATED TO A RESPONSIBILITY LEVEL
9. One of the following principle is used to both commercial and government accounting: DOUBLE
ENTRY BOOKKEEPING SERVICE

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10. This accounting concept is necessary to that users can use information in the financial
statements in noting differences and similarities between those information presented and
information from other sources that the user have. COMPARABILITY
11. Authorization by a legislative body to allocate funds for specified purposes: APPROPRIATION.
12. Which is not contained in budget call? COUNTRY’S FISCAL POLICY AND BUDGET PRIORITIES
13. It is the legislative consideration, review and approval of the national budget: AUTHORIZATION.
14. This phase in the budgetary process deals with monitoring conformance of actual reports with
planned targets: BUDGET ACCOUNTABILITY.
15. Which is not a key of UACS: PROJECT CODE
16. This refers to annual authorization for incurring obligation. NEW GENERAL APPROPRIATION
17. The phase where government funds are spent: BUDGET EXECUTION
18. Which of the ff statements is incorrect regarding GAM for NGAS: THE DBM ACCOUNTS FOR
CASH, PUBLIC DEBT AND RELATED TRANSACTIONS OF THE NGA
19. Statement of estimated receipts and estimated expenses of the government which serves as
basis for a general appropriation bill. NATIONAL GOVERNMENT BUDGET
20. Which account peculiar to government accounting. SHARE FROM NATIONAL WEALTH
21. Basis of accounting required by GAM for NGAS: ACCRUAL BASIS
22. Appropriations for the purchase of goods and services the benefits of which extend beyond the
fiscal year and which add to the assets of the government: CAPITAL OUTLAYS
23. It is applied in the preparation of the national budget where the total estimated revenue must
be more than estimated expenditures: BUDGET BALANCE
24. This qualitative characteristic of financial reporting refers to the freedom from material erroe
and bias. RELIABILITY
25. Which is not a sub – major account? BASIC SALARY – CIVILIAN
26. The NGAS are responsible for: DIRECTLY IMPLEMENTING THE PROJECTS OF, AND PERFORMING
THE FUNCTIONS DELEGATED BY, THE GOVERNMENT.
27. The coverage of the GAM for NGAS includes all of the following, except: BASIC CONCEPTS USEED
IN AUDITING THE ACCOUNTS AND FINANCIAL REPORTS OF GOVERNMENT ENTITIES
28. Which registry contains columns for allotments, obligations, unobligated allotments, and unpaid
obligations?: RAOD
29. Budget which covers items not adequately provided or not at all included in the general
appropriation law: SPECIAL BUDGET

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30. This report, required of the government entities, shows name of creditors, amounts owed to
them. Submitted by COA and DBM within 30 days after the end of the year: AGING OF DUE AND
DEMANDABLE OBLIGATIONS
31. Which is not a budget and financial accountability report: PHYSICAL PLAN
32. Which is not a financial expense: DOCUMENTARY STAMP EXPENSE
33. It is a budget that focuses on specific expenditures such as PERA, training expenses, and utility
expenses: LINE-ITEM BUDGET
34. Which is a financial expense? MANAGEMENT SUPERVISION
35. It is the authorization from the department of DBM to an agency to incur obligation up to a
specified amount that must be within the legislative appropriation: ALLOTMENT
36. Fund cluster accounting involves: MAINTAINING SEPARATE BOOKS AND BUDGET REGISTRIES FOR
EACH FUND
37. Under responsibility accounting, a cost is considered controllable at a given level of managerial
responsibility if: THE MANAGER HAS THE POWER TO INCUR IT WITHIN A GIVEN PERIOD OF TIME
38. 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
39. Which does not belong to fund cluster code values? EXTERNALLY GENERATED FUNDS
40. Refers to a fund which is available for any purpose other that those which other funds have
been designated to: GENERAL FUND
41. The President’s explanation of the country’s fiscal policy and budget priorities is contained in a
document called the: PRESIDENT’S BUDGET MESSAGE
42. Office maintains accounts of financial transactions of all national government offices, agencies,
and instrumentalities? BTr
43. These are intended to meet the needs of users who are not in a position to demand reports
tailored to meet their particular needs: GENERAL PURPOSE FINANCIAL STATEMENTS
44. It is the amount committed to be paid by the government arising from an act of a duly
authorized administrative officer and which binds the government to the immediate and
eventual payment of money. ALLOTMENT
45. Which is a major account group? CASH AND CASH EQUIVALENTS
46. Authority issued by the DBM to central, regional and provincial offices and operating units to
cover their cash requirements: NOTICE OF CASH ALLOCATION

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47. The UACS was jointly developed by the following department except: JOINT LEGISLATIVE –
EXECUTIVE COUNCIL
48. Which of the ff principles is not in accordance with the basic government accounting and
reporting principles under the GAMS for NGAS? MODIFIED ACCRUAL BASIS OF ACCOUNTING IN
ACCORDANCE W/ PPSAS
49. Account with an RCA code of 20601010: LIABILITY ACCOUNT
50. Not contained the presidents budget: GOV’T BUDGET MAP
51. The GAM for NGAS aims to update all of the ff except: RULES AND REGULATIONS REGARDING
THE FILING AND PAYMENT OF TAXES BY GOVERNMENT EMPLOYEES
52. In the RCA, this group represents classification within major account: SUB – MAJOR ACCOUNT
GROUP
53. Which is the sub – major group? LAND
54. System of prescribing the procedures for recording, appropriations, allotments and obligations.
BUDGETARY ACCOUNTING
55. UACS code of trust receipts: 08
56. Refers to an accounting entity for recording expenditures and revenues associated with a specific
activity for which accounting records are maintained and periodic financial reports are
maintained. FUND CLUSTER ACCOUNTING
57. Not expense under personnel services: TRAINING EXPENSE
58. Inter – agency payable account: DUE TO BIR
59. Legal basis of COA in promulgating the GAM for NGAS: ART. IX – D, SECTION 2 PAR. (2) OF THE
1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES
60. Not maintenance and other operating expenses account: SUBSISTENCE ALLOWANCE
61. After the budget call, the budget hearing are made whereby agencies defend their proposed
programs and expenditures for upcoming year before the: DBM
62. Government agencies basically cost centers: THE PRIMARY PURPOSE IS TO THE PUBLIC AT THE
LOWEST POSSIBLE COST
63. Registry contains columns for the allotment received, notice of cash allocation received and
utilized, and balances for unutilized notice of cash allocation and unfunded allotment: RANCA
64. Refers to authorization programmed annually of for some other period prescribed by law which
do not require periodic action by congress: AUTOMATIC APPROPRIATION

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65. Not one of the registries maintained by a government entity: REGISTRIES OF JOURNALS AND
LEDGERS
66. Budgeting approach that uses performance information to assist in deciding where the funds will
go: PERFORMANCE – INFORMED BUDGETING
67. RCA code of advances to contractors: 19902010
68. Represents the accounts classification as to assets, liab… ACCOUNT GROUP
69. After the incurrence of obligations, the next step in the budget cycle is: DISBURSEMENT
AUTHORITY
70. Which is sub – major account group: LAND
71. Under this approach to budgeting, several parties participate in the budget preparation, starting
from lowest levels: BOTTOM – UP BUDGETING
72. Events or transactions requires recording in the book of accounts of a government entity:
DISBURSEMENT AUTHORITY
73. Plan or program of activities together with the cost of undertaking them to meet goals or targets
which emphasize on expected result: PERFORMANCE BUDGET

COMPUTATION MNOP:

1. In MNOP’S first quarter statement of appropriations, allotments, obligations, disbursement and

balances, how much is shown as “unpaid obligation”? P2B
2. The P60B authorization is referred to as: ALLOTMENT
3. In MNOP’S first quarter statement, how much is shown “unobligated allotments”: P5B
4. “unreleased appropriation”: P180B
5. P240B allocation is referred to as: APPROPRIATION
6. “advances for payroll” is a/an: ASSET ACCOUNTS
7. Recorded in the ORS: ENTERING INT EMPLOYEMENT CONTRACTS WITH EMPLOYEES
8. The account “Personal economic Relief Allowance (PERA)” is a/an: PERSONNEL SERVICE ACCOUNTS
9. Event is recorded in the books of accounts: CLOSING ENTRIES
10. Subsidy from national government account is debited: REVERSION OF UNUSED NCA
11. Receipt of an appropriation is recorded by a government entity in the: RAPAL
12. Accounts debited when government entity remits collections to National Treasury: CASH –
TREASURY/ AGENCY DEPOSIT, REGULAR

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13. Charged with responsibility of keeping the general accounts and related documents of government:
COA
14. Credited when government entity receives the NCA: SUBSIDY FROM NATIONAL GOV’T
15. The 8 digit RCA code for expenses starts with number: 5
16. Registries maintained by government entities technically considered as: BUDGET RECORDS
17. Used to recognize the constructive remittance of taxes withheld: TRA
18. Type of expenditure pertains to all types of employee benefits: PERSONNEL SERVICES
19. RAOD is maintained by: BUDGET DIVISION AGENCIES

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REVENUE AND OTHER RECEIPTS

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? RECEIPT OF FREE
TRAINING AND SEMINARS REGARDING PROCESS TECHNOLOGY ON FARMING FROM
INTERNATIONAL ORGANIZATION
2. The national government received a foreign grant conditioned on the construction of a public
infrastructure. Entity A was chosen as implementing agency. When the national government
received the grant, the entry in BTr’s books included a: CREDIT TO THE “OTHER DEFFERED
CREDITS” ACCOUNTS
3. 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 the PPSAS, how should entity A recognize revenue from the contract? BY
REFERENCE TO THE STAGE OF COMPLETION OF THE CONTRACT AT THE REPORTING DATE
4. Which of the following would result to an increase or decrease in the revenue reported by a
government entity in its statement of Financial performance? THE REPAYMENT OF A LOAN
PAYABLE FORGIVEN
5. The national government receives a foreign grant conditioned on the construction of public
infrastructure. According to the GAM for NGAs, when does the national government recognize
revenue from grant? WHEN CONDITION IS MET
6. The taxable event for VAT is the: UNDERTAKING OF A TAXABLE ENTITY
7. Payments to government entities in the form of checks are not allowed. FALSE
8. Imposition and collection of tax revenue is considered a (an): NON EXCHANGE TRANSACTION
9. At the end of the period, the “Cash – treasury/ agency deposit, regular “account is closed to the:
ACCUMULATED SURPLUS OR DEFICIT ACCOUNT
10. Statement 1: 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 as a transaction which
generated revenue
Statement 2: When goods or services are exchanged or swapped for goods or services are of a
similar nature and value, the exchange is regarded as a transaction which generates revenue
BOTH FALSE
11. According to the GAM for NGAs, an exchange of goods or services of similar nature and value
between entities: DOES NOT GIVE RISE TO REVENUE

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12. According to the GAM for NGAs, which of the following may never give rise to revenue for a
government entity? SERVICES IN KIND
13. Which of the following receipts of a government entity will give rise to revenue recognition?
RECEIPTS OF SUBSIDY FROM NATIONAL GOV OR OTHER NATIONAL GOV AGENCIES
14. All revenues shall be remitted to the BTr are included in the special Fund, unless another law
specifically requires otherwise: FALSE
15. Gifts, donations and goods in- kind with condition are recognized: INIATIALLY AS LIABILITY AND
RECOGNIZED AS REVENUE ONLY WHEN THE CONDITION IS SATISFIED
16. Government entities and business entities use the same accounting treatment for all the
following except: REMITTANCE OF TAXES WITHHELD TO THE BIR
17. According to 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: RECORDED AS
LIABILITY
18. All of the following give rise to the recognition of revenue from non – exchange transaction
except: SALES OF GOODS
19. According to P.D 1445, all revenues of an entity shall be remitted to the national Treasury and
included in the: GENERAL FUNDS
20. Which of the following is a non – exchange transaction? COLLECTION OF TAXES
21. The constructive remittance of taxes withheld through the TRA gives rise to the recognition of
revenue. TRUE
22. The receipt of a performance bond or a security deposit is credited to: LIABILITY ACCOUNT
23. Statement 1 Revenue from non exchange transaction shall be measured at the amount of the
increase in net assets recognized by the entity, unless it is also required to recognize a liability
Statement 2: Reve from exchange transaction shall be measured at FV of consideration received
BOTH TRUE
24. According to GAM for NGAS, all of the following criteria must be met before a government entity
recognizes revenue from the sale of goods, except: THE STAGE OF COMPLETION CAN BE
MEASURED RELIABLY
25. Revenue received by the NGAS from exchange transactions are derived from the following
except: TAXES, GIFTS AND DONATIONS, GOODS IN KING, AND FINES AND PENALITIES
26. According from GAM for NGAS, the receipts of concessionary loans by gov entites may give rise
to rev recog: TRUE

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27. These are transactions in which one entity receives assets or services, or has liabilities
extinguished, and directly give approximately equal value to another entity in exchange:
EXCHANGE TRANSACTION
28. S1: interest shall be recog as they earned… relevant agreement
S2: Dividends or similar distri recog… payment is established ONLY 2 IS TRUE
29. The taxable event for income tax is the passage of the time period for which tax is levied: FALSE
30. It is type of fund held by a government entity that is designated for special purpose: SPECIAL
FUND
31. Which one of the following is not true? WHEN THE INFLOW OF CASH AND CE OR RECEIVABLE IS
DEFFERED, TH FV OF CONSID IS EQUAL TO THE NOMINAL AMOUNT OF CASH RECEIVED
32. According to GAM on NGAs, interest revenue is recognized: ON A TIME PROPORTION BASIS
USING E INTEREST METHOD
33. These are econ benefits or service… laws and regulations: FINES

Which of the following is not one of the fundamental principles for revenue under P.D No. 1445? ALL
COLLECTIONS OF REV MUST BE IN THE FORM OF CASH

34. According to GAM on NGAS, when the outcome of a service contract cannot be estimated
reliably, revenue is recognized: ONLY TO THE EXTENT OF COST THAT ARE EXPECTED TO BE
RECOVERED

The receipt of which of the following may P.Dnue by a government entity? INTER – AGENCY FUND
TRANSFER
35. Remittances of collection to National treasury are recorded as a debit to which of the following
accounts? CASH – TREASURY/AGENCY DEPOSIT, REG
36. These do not meet the definition of an asset because recipient is unable…unenforceable
undertaking: PLEGES
37. According to GAM of NGAS, revenue from exchange transactions are measured at the amount of
the cash received. FALSE
38. When an uncertainty arises about collectability of an amount already included in rev, the
uncollectible amount, which recovery has ceased to be probable, is recognized as: AN
IMPAIRMENT LOSS
39. Entity A sells goods with a list price of 100,000 on account. The credit term is 20% and 10%. The
JE to recog the rev includes all the following except: A DEBIT TO SALES DISCOUNT FOR 28,000

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40. 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… from permit
fees: UPON COLLECTION OF THE FEE
41. Which of the following does not give rise to revenue from assistance or subsidy? INTER –
AGENCY FUND TRANSFER
42. The main source of rev for gov is taxes: TRUE
43. Taxes is compulsory includes fees, fines and penalties: FALSE
44. When an amount already recognized as a revenue becomes subsequently uncollectible, it is:
RECOGNIZED AS AN EXPENSE
45. S1: all rev accruing… gov
S2: only when authorized by law such rules… permanent committee
BOTH TRUE
46. When cash flows are deffered, the FV of conid receivable is PV: TRUE
47. According to P. D (5)… AMOUNTS RECEIVED IN TRUST AND FORM BUSINESS-TYPE ACTIVITIES OF
GOV MAY SEPARATELY RECORDED.
48. Revenues of government entity arise from exchange transaction only: FALSE

ACCOUNTING FOR DISBURSEMENTS AND RELATED TRANSACTION

1. S1: Gov entities are allowed…credit card

S2: The department of national defense is one …credit card for payments
BOTH TRUE
2. Entity A purchase office supplies from an authorized merchant using an electronic card… JE
CREDITS TO AP
3. S1: According to GAM for NGAs, the advice to ADA mode of disbursement can be used only if the
payee maintains an account in the same bank where the government entity maintains an
account
S2: Land Bank of the Phil is the sole government servicing bank where ADA mode of disb can be
done. BOTH FALSE
4. According to GAM for NGAs, cash disbursement are made through: CASH ADVANCES TO
AUTHORIZED PERSONNEL
5. When a government agency pays an account and withholds tax, the journal entry includes credt
to: DUE TO BIR

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6. S1: Due to strict internal control measures, a government entity can only disburse fuds via cash
or check
S2: Checks can be MDS or commercial checks ONLY 2 IS TRUE
7. S1: No additional cash advance shall be given to any official employee unless the previous cash
advance given to him/her is first liquidated.
S2: Liquidation of cash advance for foreign travel should be done 30 days upon return to
workstation. ONLY STATEMENT 1 IS TRUE
8. All of the following are considered valid cashless disbursement except: PAYMENT TO A SUPPLIER
THROUGH GCASH
9. S1: The NCCAA is a disbursement authority issued to a gov’t agency w/ foreign service posts.
S2: the department of foreign affairs has this kind of disbursement authority. BOTH STATEMENTS
ARE FALSE
10. S1: Disbursement through the CDC results in the recognition of a loan payable in the books of
accounts of the BTr.
S2: Since liability is recognized, the CDC involves cash inflow to BTr. BOTH STATEMENTS ARE
FALSE
11. S1: Entity A may acquire equipment from a supplier, on account and a lender settles the account
of A by directly paying the supplier the proceeds of a loan payable that is recorded in the BTr’s
books
S2: this transaction is called CDC ONLY STATEMENT 1 IS TRUE
12. A certification on the availability of allotment is required before a disbursement of government
funds is made. According to the GAM for NGAs, who shall issue the certification? BUDGET
OFFICER
13. Which of the following results in the recognition of payroll? LIQUIDATION OF CASH ADVANCE
FOR TRAVEL
14. 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… CHIEF
ACCOUNTANT
15. Which of the following is not used in processing disbursements? ORs
16. S1: All disbursement shall be made through DV or payroll.
S2: The head of the requisitioning unit shall approve any disb: ONLY 1 IS TRUE
17. According to the GAM for NGAs, accounting for petty Cash shall be done using IMPREST SYSTEM

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18. S1: under the ADA mode disbursement, payments from a government entity are directly debited
to the accounts of the payees through fund bank transfers.
S2: ADA works like a check, hence, once notified, the payee can go to the bank to withdraw the
cash by presenting the notification. BOTH FALSE
19. Which of the following is not one of the modes of disbursement by a government entity?
PAYMENT THROUGH GCASH
20. Which of the following is not a signatory in the LDDAP-ADA? PAYEE
21. The Chief accountant shall charge obligations incurred against available allotment to ensure that:
NO OVERDRAFT IS INCURRED
22. The petty cash shall be replenished when: DISBURSEMENTS REACH AT LEAST 75% OR AS NEEDED
23. Which of the following accounts shall be debited in recording replenishment of PCF?
APPROPRIATE EXPENSE ACCOUNT
24. Which of the following accounts is credited in the books of government entity to reflect a NCAA
mode of disbursement? SUBSIDY FROM NATIONAL GOV
25. Which of the following accounts shall be debited once cash advance has been granted?
ADVANCES TO OFFICERS AND EMPLOYEES
26. When overpayment of expense related to the previous year is discovered, the journal entry to
records the overpayment includes a: CREDIT TO ACCUMULATED SURPLUS/DEFICIT
27. Which of the following statements regarding the disbursement of government funds is
incorrect? 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”
28. Which of the following is not true regarding cash advance payroll? ADVANCES FOR PAYROLL MAY
BE USED FOR ENCASHMENT OF CHECKS OR FOR LIQUIDATION OF PREVIOUS OR OTHER TYPES OF
CASH ADVANCES
29. This is used to recognize in the books of national gov’t agencies, the constructive remittance to
Bir and Boc of taxes’ duties withheld: TAX REMITTANCE ADVICE
30. S1: All disbursements require prior certification to establish their validity and legality
S2: A certification for fictitious obligation is void and results to criminal liability by the certifying
officials. BOTH TRUE
31. Entity A disburses a check chargeable against its checking account maintained with Gov’t
servicing bank the Je to record… credit? CASH IN BANK- LOCAL CURRENCY, CURRENT ACCOUNT.

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32. Which of the following government agencies will most likely be able to obtain disbursement
authority in the form of CDC? DFA
33. The entry in the books of a government agency with foreign service post to rcord the receipt of
disbursement authority called CDC includes a: CREDIT TO SUBSIDY FROM NATIONAL GOV
34. Which is the account credited when remitting gov share for PAG IBIG contri? DUE TO PAG IBIG
35. Entity A makes payment through bank transfer. This mode of disb is most likely through the use
of a (an) ADVICE TO DEBIT ACCOUNT
36. Entity A has a foreign service post. During the period, it receives authorization from DBM
allowing it to use the collections of its foreign service post to pay for the necessary operating
expenses. The entry… DEBIT TO CASH- CONSTRUCTIVE INCOME REMITTANCE
37. Payments of checks that are chargeable against Treasury Account are credited to the: CASH
MODIFIED DISB SYSTEM ACCOUNT
38. According to the GAM for NGAs, disbursement for salaries and wages shall be supported by
PAYROLL
39. The following disbursement are excluded from payment using LDDAP-ADA except: PAYMENT OF
GOV EMPLOYEE SALARIES
40. Which of the following results to the recognition in the books of accounts classified as personnel
service? SET UP OF PAYABLE FOR PAYROLL
41. Which of the following is true regarding disbursement through electronic Modified disb system?
THE DISB IS MADE VIA AN ONLINE TRANSACTION
42. It is an authority by an agency’s central office to its regional and operating units to cover the
latter’s cash requirements. NOTICE OF TRANSFER OF ALLOCATION
43. A government entity makes constructive remittance of taxes withheld to the BIR through Tax
Remittance Advice. The entry in recording the transaction includes a: DEBIT DUE TO BIR
44. This is used to recognize in the books of national government agencies, the constructive
remittance to BIR and BOC of taxes and customs’ duties withheld TAX REMITTANCE ADVICE
45. When a government entity remits its collections to BTr, the journal entry to record the
remittance includes a DEBIT TO CASH- TEASURY/ AGENCY DEPOSIT, REG
46. Entity A acquires an equipment on account and settles the accounts by debiting accounts
payable and crediting subsidy from national gov. the mode of disb used is most likely: NON CASH
AVAILMENT AUTHORITY

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47. S1: Under ADA mode of disb, payments from a gov entity are directly debited to the accounts of
payees through fund/ bank
S2: ADA works like a check, hence, once notified, the payee can go to the back to withdraw the
cash by presenting the notification: BOTH STATEMENT ARE FALSE
48. Which of the following is not a form of a disbursement authority? CBC
49. Entity A wants to make disbursement online. Which of the ff should entity A do so that it can
make vaid disb online? ENROLL W/ THE EMDS OF THE LBP
50. All disbursement vouchers or payroll shall be approved by the: HEAD OF AGENCY
51. Which of the following shall certify the availability of allotment before obligations can be
incurred and disbursement are made? BUDGET OFFICER

A certification of availability of funds and completeness of supporting documents is required before a

disbursement of gov funds made. According to the GAM for NGAs, who shall issue this certification?
CHIEF ACCOUNTANT

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