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: 15 out of 15

Chapter 2
Question 1
1 / 1 pts
Appropriation is also called obligational authority.

True

Correct!

False
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: 9 out of 10

Long Quiz C1 – C4
Question 1
0 / 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.

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.

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