PA 312 MIDTERM

MULTIPLE CHOICE

Which of the following is/are the objectives of Government Accounting under New
Government Accounting System (NGAS)? I. To produce information concerning past
operations and present conditions; II. To provide a basis for guidance for future operations; III.
The adoption of a system that is in conformity with International Accounting Standards; IV.
Pursuit of eventual computerization, which will include responsibility accounting, thereby
ensuring the generation of various reports that are useful to management, lawmakers and the
general public. *

I and II
III and IV
I, II, III and IV.
I, II and III.

Which is not charged with the government accounting responsibility? *

Commission on Audit
Department of Budget and Management
National Government Agencies
Legislative Department

What is the role of the Bureau of Treasury in relation to government accounting responsibility?
*
To receive and keep national funds and manage or control disbursements thereof.
To design, prepare and approve the accounting systems of government agencies.
To keep the general accounts of the national government.
To prepare the annual financial report of the national government, its instrumentalities and
government-owned or controlled corporations.

What is the legal basis of the Commission on Audit in prescribing the New Government
Accounting System manual? *

PD 1445
Constitution of the Republic of the Philippines
COA Circular No. 2002-003
PD 1445 and the Constitution of the Republic of the Philippines

Which government office plays a pivotal role in the cash operations of the national
government? *

Bangko Sentral ng Pilipinas

Department of Budget and Management
Bureau of Treasury
Landbank of the Philippines

Which of the following is/are the components of books of accounts? *

Regular agency books and National government books
National government books and books of original entry
Journals and general/subsidiary ledgers
Regular agency books and books of original entry

What is the basis of accounting under the international point of view of current Government
Accounting system? *

Accrual and cash basis

Cash basis
Accrual basis
Strict accrual

Journals and ledgers are the books of accounts of the national government agencies. Which
of the following journals shall be used under the new government accounting system? *

Journal of checks issued

Journal and analysis of obligations
Journal of bills rendered
General Journal

Special purpose fund is a fund appropriated for purposes other than those provided in the
regular funds of government agencies. Which of the following is a special purpose fund? *

Organizational adjustment fund

Reimbursable fund
Sinking fund
General fund

Regular agency books shall be used to record the receipt and utilization of Notice of Cash
Allocation and other income/receipts, which the agencies are authorized to use and to
deposit with Authorized Government Depository Bank and the national treasury. Which of the
following is NOT a Regular Agency Book? *

General Journal
General Ledger
Cash Journal
Cash Disbursement Journal

Which of the following system is NOT INCLUDED the New Government Accounting system? *

Commercial accounting
Double entry bookkeeping
Responsibility accounting
Fund accounting

In government accounting, which of the following is a capital outlay? *

Salaries and wages
Repairs and maintenance
Land Improvements
Merchandise Inventory

In government Accounting, which of the following is the Maintenance and Other Operating
Expenses (MOOE)? *

Night shift differential

Janitorial services
honorarium
salaries and wages

Which of the following is NOT Personnel Services? *

Labor and wages

Salaries and wages-regular
Pension benefits
clothing/ uniform allowance

Which of the following is a sub-major account group in a Revised Chart of Accounts? *

Cash on Hand
cash and cash equivalents
Asset
Petty cash

MODIFIED TRUE OR FALSE

Statement A : Under the new government accounting system, accounting entries are made
manually. ;
Statement B. The manual accounting system proved complex and tedious because of o many
journals and records to maintain. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

Statement A: PD 1445 and the Constitution of the Philippines are the legal basis of the
Commission on Audit in prescribing the New Government Accounting System. ;
Statement B: Under the new accounting system, Government Accounting is defined in
pursuant to Section 110 of PD 1445. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.
Statement A: The information of past operations and present conditions facilitates the
performance of an agency for only one period.
; Statement B: The financial report shows only the agency’s financial resources. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

Statement A: Accounting responsibility comes from the Constitution, laws, policies, rules and
regulations. ;
Statement B: It is the Constitution of the Philippines that mandates the keeping of the general
accounts of the Philippines. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

Statement A: The Commission on Audit(COA) submits to the President and Congress the
annual report not later than the last day of December each year. ;
Statement B: The consistency of account classification and coding structures with the revised
chart of accounts is the responsibility of the COA. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

Statement A: The Department of Budget and Management is responsible for the formulation
and implementation of the National budget. ;
Statement B: The validation and assignment of new codes for funding source organization is
the responsibility of the Bureau of Treasury. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

Statement A: It is not required to all national agencies to maintain the Regular Agency books
and National Government books. ;
Statement B: It is necessary to include the Notes when preparing the financial statements. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.
Statement A: The straight line method of depreciation is used for government Property, plant
and equipment (PPE).
Statement B: The depreciation starts on the month of purchase of PPE. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

Statement A: Liquidated damages paid by the contractor shall be added to the total cost of
the project.;
Statement B: Bonus paid to the contractor for completing the work ahead of time is deducted
to the total cost of the project. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

Statement A: The use of negative entries shall be continued. ;

Statement B: Petty Cash Fund may be used to purchase regular inventory items for stock. *

Statement A and B are True;

Statement A and B are False;
Statement is True, Statement B is False;
Statement A is False, Statement B is True.

IDENTIFICATION
Select the estimated life( in years) of the government properties as per COA circular No. 2003-
007.
Railways *
5
7
10
15
20
30
40
Trains *
5
7
10
15
20
30
40
Sports Equipment *
5
7
10
15
20
30
40
Library books *
5
7
10
15
20
30
40
Buildings-Concrete *
5
7
10
15
20
30
40
Office-equipment *
5
7
10
15
20
30
40
Firefighting equipment *
5
7
10
15
20
30
40
Watercrafts *
5
7
10
15
20
30
40
Runways *
5
7
10
15
20
30
40
*
Buildings-wood *
5
7
10
15
20
30
40

SOLVING

The Local Government of Makilala purchased heavy equipment (Volvo) amounting to P20,
000,000.00 last December 30,2018. The estimated life of Volvo is 10 years .36.
What is the residual value of Volvo at the end of its life? *
200,000.00
2,000,000.00
4,000,000.00

The Local Government of Makilala purchased heavy equipment (Volvo) amounting to P20,
000,000.00 last December 30,2018. The estimated life of Volvo is 10 years .
What is the method of depreciation to be used? *
Straight line
double declining
sum of the years
none of the above

The Local Government of Makilala purchased heavy equipment (Volvo) amounting to P20,
000,000.00 last December 30,2018. The estimated life of Volvo is 10 years .
What is the depreciation expense of Volvo in January 1,2019? *
zero
1,500,000.00
1,800,000.00
2,000,000.00

The Local Government of Makilala purchased heavy equipment (Volvo) amounting to P20,
000,000.00 last December 30,2018. The estimated life of Volvo is 10 years .
What is the depreciation expense of Volvo in December 31,2020? *
zero
1,500,000.00
1,800,000.00
2,000,000.00
The Local Government of Makilala purchased heavy equipment (Volvo) amounting to P20,
000,000.00 last December 30,2018. The estimated life of Volvo is 10 years .
What is the accumulated depreciation of Volvo in the year ended December 31, 2020? *
zero
3,000,000.00
3,600,000.00
4,000,000.00

The Local Government of Makilala purchased heavy equipment (Volvo) amounting to P20,
000,000.00 last December 30,2018. The estimated life of Volvo is 10 years .
What is the carrying value of Volvo in December 31, 2020? *
18,000,000.00
17,000,000.00
16,400,000.00
16,000,000.00

Identify the accounts to be recorded in Registry of Allotments and Obligations- Financial

Expenses (RAOFE).(SELECT ONLY THREE) *
bank charges
documentary stamp expense
interest expense
cash gifts
allowances
bonuses
travelling expenses
representation expenses
trainings and seminars
repairs and maintenance
supplies and materials

Identify the accounts to be recorded in Registry of Allotments and Obligations- Personnel

Services (RAOPS)(SELECT ONLY THREE) *
bank charges
documentary stamp expense
interest expense
cash gifts
allowances
bonuses
travelling expenses
representation expenses
trainings and seminars
repairs and maintenance
supplies and materials
Purchase of building
construction of building
Identify the accounts to be recorded in RRegistry of Allotments and Obligations- Maintenance
and Other Operating Expenses (RAOMO). (SELECT ONLY FIVE) *
bank charges
documentary stamp expense
interest expense
cash gifts
allowances
bonuses
travelling expenses
representation expenses
trainings and seminars
repairs and maintenance
supplies and materials
Purchase of building
construction of building

Identify the accounts to be recorded in Registry of Allotments and Obligations- Capital Outlay
(RAOCA). (SELECT ONLY TWO) *
bank charges
documentary stamp expense
interest expense
cash gifts
allowances
bonuses
travelling expenses
representation expenses
trainings and seminars
repairs and maintenance
supplies and materials
Purchase of building
construction of building

The City of Kidapawan incurred the following expenses for the year 2019.
Purchase of Building P3,000,000.00;
Construction of Building P 15,000,000.00;
Cash gifts P 500,000.00;
Allowances P 200,000.00;
Bonuses P100,000.00
Bank charges P10,000.00;
Documentary Stamp expenses P5,000.00;
Interest expenses P8,000.00;
Travelling expenses P 800,000.00;
Representation expenses P200,000.00;
Training and seminar expenses P400,000.00;
Repairs and maintenance of Property plant and equipment P 150,000.00;
Supplies and Materials P 50,000.00..
The total obligations incurred to be recorded in the Registry of Allotments and Obligations-
Financial Expenses (RAOFE) is *
23,000.00
800,000.00
1,600,000.00
18,000,000.00

The total obligations incurred to be recorded in the Registry of Allotments and Obligations-
Personnel Services (RAOPS). is *
23,000.00
800,000.00
1,600,000.00
18,000,000.00

The total obligations incurred to be recorded in the Registry of Allotments and Obligations-
Maintenance and Other Operating Expenses (RAOMO) is *
23,000.00
800,000.00
1,600,000.00
18,000,000.00

The total obligations incurred to be recorded in the Registry of Allotments and Obligations-
Capital Outlay (RAOCA) is *
23,000.00
800,000.00
1,600,000.00
18,000,000.00