16 Each
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GOVERNMENT ACCOUNTING
This accounting concept is necessary so 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 may have. *
1 point
Understandability
Feedback value or confirmatory value
Financial statement analysis and ratios
Comparability
A government entity will report surplus in its statement of financial performance in
which of the following instances? *
1 point
The total debits in the statement of financial position columns in the worksheet exceed the total
credits.
The total debits in the statement of financial performance columns in the worksheet exceed the
total credits.
All of the options
None of the options
The revenue and expense summary account is credited when closing to the accumulated surplus
(deficit) account.
Which of the following statements best differentiates the government accounting
process from the accounting process of a business entity? *
1 point
The government accounting process involves numerous complicated steps or procedures that are
beyond the understanding of a mere JPIA member, but not for a CPA.
The government accounting process involves procedures that are not generally acceptable for
business entities.
The government accounting 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.
Unlike for the accounting process of business entities which ends in the preparation of general
purpose financial statements, the government accounting process ends with the audit by the COA.
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 *
1 point
General Appropriations Bill
Allotment
Approved Budget
Notice of Cash Allocation
Under this approach to budgeting, several parties participate in the budget preparation,
starting from the lowest levels of the government up to the highest levels. *
1 point
Bottoms-up budgeting
Zero-based budgeting
Incremental budgeting
Bottom-up budgeting
After the incurrence of obligations, the next step in the budget cycle is *
1 point
Disbursement
Appropriation
Allotment
Disbursement authority
No journal entry is made for the receipt of this type of disbursement authority. *
1 point
All of the options
NCAA
NCA
Two of the options
None of the options
CDC
Under this type of disbursement authority, disbursements are made out of the entity’s
own bank account rather than through the Treasury Single Account. *
1 point
Disbursement through Advice to Debit Account (ADA)
Disbursement through Cash Disbursement Ceiling (CDC)
Disbursement through electronic Modified Disbursement System (eMDS)
Disbursement through Non-Cash Availment Authority (NCAA)
During the period, Entity A, a government entity, withheld ₱100,000 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 Tax Remittance Advice. The entry to
record the remittance includes *
1 point
Dr, SING, 100,000; Cr, Cash-TRA, 100,000
Dr, Cash-TRA, 100,000; Cr, Due to BIR, 100,000
Both options are correct
None of the entries given is correct
Entity A, a government entity, receives its Notice of Cash Allocation amounting to
₱5,000,000 for the year. The journal entry to record this event is *
1 point
Dr, Cash NTMDS, 5M; Cr, SING, 5M
Dr, Cash-Collecting Officer, 5M; Cr, SING, 5M
Dr, Cash - Tax Remittance Advice, 5M; Cr, Due to National Government, 5M
No journal Entry
No journal entry is made for a disbursement under this mode of disbursement. *
1 point
LDDAP-ADA
CPC
eMDS
None of the options
All of the options
Entity A, a government entity, receives notice of its ₱10M appropriation for the year. The
journal entry to record this event is *
1 point
Dr, Cash NTMDS, 10M; Cr, SING, 10M
Dr, Cash-Collecting Officer, 10M; Cr, SING, 10M
Dr, Cash - Tax Remittance Advice, 10M; Cr, Due to National Government, 10M
No journal Entry
Arrange the following accounts in the sequence they appear in the trial balance. I.
Permit Fees; II. Allowance for Impairment-Accounts Receivable; III. Due to BIR; IV.
Salaries and Wages-Regular; V. Advances for Payroll *
1 point
II, V, III, I and IV
II, III, V, I and IV
V, II, III, I and IV
II, V, I, III and IV
Which of the following modes of disbursements would result to the recognition of a
loan payable in books of the BTr? *
1 point
NCAA
CDC
ADA
AWAN
Which of the following events or transactions requires recording in the books of
accounts of a government entity? *
1 point
Appropriation
Allotment
Disbursement Authority
Incurrence of Obligation
None of the options
All of the options
Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of
disbursement? *
1 point
Dr, AP; Cr, Cash - Constructive Income Remittance
Dr, AP; Cr, Cash - NTMDS
Dr, AP; Cr, SING
None of the options
Two of the options
Akin to
JERRINE START
An entity accrues salaries and wages after approval of payroll. The entry is *
1 point
Dr, Salaries and Wages and PERA; Cr, SING
Dr, Salaries and Wages and PERA; Cr, Advances to Officers and Employees
Dr, Salaries and Wages and PERA; Cr, Due to SSS, BIR, PhilHEATH, PagIBIG, Officers and
Employees
Dr, Salaries and Wages and PERA; Cr, Due to GSIS, BIR, PhilHEATH, PagIBIG, Officers and
Employees
Which of the following is not one of the Fundamental Principles for Disbursement of
Public Funds under the GAM for NGAs? *
1 point
Government funds or property shall be spent or used solely for public purposes.
No money shall be paid out of any public treasury or depository except in pursuance of an
appropriation law or other specific statutory authority.
Trust funds shall be available and may be spent only for the specific purpose for which the trust
was created or the funds received.
Fiscal responsibility shall, to the greatest extent, be assumed solely by the Head of the government
agency.
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 mode of disbursement is called *
1 point
Cash Disbursement Ceiling (CDC)
Advice to Debit Account (ADA)
Non-Cash Availment Authority (NCAA)
Notice of Transfer of Allocation (NTA)
Entity A, a government entity, grants a ₱10,000 cash advance for the travelling
expenses of an employee. The employee liquidates ₱8,000 of the cash advance and
remits the excess cash advance of ₱2,000. After recording the grant of cash advance
and the liquidation thereof but before adjustment for the collection of the excess cash
advance, how much is the recorded expense in the books of accounts? *
1 point
₱10,000
₱2,000
₱8,000
₱0
Which of the following statements is incorrect regarding the GAM for NGAs? *
1 point
The COA shall keep the general accounts of the Government and, for such period as may be
provided by law, preserve the vouchers and other supporting papers pertaining thereto, pursuant to
Section 2, par. (1), Article IX-D of the 1987 Philippine Constitution.
The DBM accounts for the cash, public debt and related transactions of the NG
The objectives of general purpose financial statements (GPFSs) are to provide information about
the financial position, financial performance, and cash flows of an entity that is useful to a wide
range of users in making and evaluating decisions about the allocation of resources. Specifically,
the objectives of general purpose financial reporting in the public sector are to provide information
useful for decision-making, and to demonstrate the accountability of the entity for the resources
entrusted to it.
The financial reporting system of the Philippine government consists of accounting system on
accrual basis and budget reporting system on budget basis under the statutory responsibility of
the NGAs, Bureau of the Treasury (BTr), Department of Budget and Management (DBM), and the
COA.
A government entity remitting collections to the BTr will debit this account to record the
remittance. *
1 point
Cash-Treasury/Agency Deposit, Regular
Cash – Collecting Officers
Cash-Modified Disbursement System (MDS), Regular
Subsidy from National Government
The journal entry to record the collection of unbilled tax revenue (e.g., Travel Tax)
through direct deposit in Authorized Agent Banks is *
1 point
Dr, Cash-Treasury/Agency Deposit, Regular; Cr, Travel Tax
Dr, AR; Cr, Travel Tax
Dr, Cash NTMDS; Cr, Travel Tax
Dr, Cash-Collecting Officer; Cr, Travel Tax
These refer to transactions in which one entity receives assets or services, or has
liabilities extinguished, and directly gives approximately equal value to another entity in
exchange. *
1 point
Exchange transactions
Non-exchange transactions
Non-reciprocal transactions
External events other than transfers
Which of the following statements is correct regarding the Fundamental Principles for
Disbursement of Public Funds under P.D. No. 1445 *
1 point
Generally accepted principles and practices of accounting as well as of sound management and
fiscal administration shall be observed and shall be presumed to have higher authority in cases
where these principles conflict with the law.
All disbursements or dispositions of government funds or property shall invariably bear the
approval of the COA.
Trust funds shall be available and may be spent only for the specific purpose for which the trust
was created or the funds received.
No money shall be paid out of any public treasury or depository except through the issuance of
Modified Disbursement System Checks.
How much is the surplus (deficit) for the period? *
1 point
215,000
(200,000)
230,000
178,000
The “Cash – Treasury/Agency Deposit, Regular” account is used in which of the
following transactions? *
1 point
Collections from customers are made through direct deposit in the entity’s account maintained
with a Government Servicing Bank (GSB).
Taxes withheld are remitted to the BIR.
A disbursement authority in the form of Cash Disbursement Ceiling is received.
Collections of revenue are remitted to the BTr.
According to P.D. 1445, government entities shall acknowledge receipts of revenue *
1 point
through temporary receipts; provided a prior approval by COA is obtained.
through the issuance of properly endorsed checks.
through duplicate copies which shall not be the exact copies of the original.
through pre-numbered official receipts.
During the period, Entity A, a government entity approved a ₱400,000 payroll and
granted the Disbursing Officer a cash advance of ₱280,000, net of withholding taxes
and contributions to GSIS, PhilHealth and Pag-IBIG. The pro-forma entry to record the
liquidation of the payroll fund is *
1 point
Dr, Salaries and Wages and PERA; Cr, Due to GSIS, BIR, PagIBIG, PhilHEALTH and Officers and
Employees
Dr, Advances for payroll; Cr, Cash-NTMDS
Dr, Due to Officers and Employees; Cr, Advances for payroll
Dr, Cash - Collecting Officers; Cr, Advances for payroll
A government entity recognizes revenue from exchange or non-exchange transactions.
In which of the following transactions does a government entity need not recognize
revenue? *
1 point
Exchange of goods or services of dissimilar nature and value.
Receipt of an unconditional grant from a foreign government.
Receipt of equipment as donation from a good-hearted, private individual.
Receipt of a pledge.
The GAM for NGAs aims to update all of the following except *
1 point
rules and regulations regarding the filing and payment of taxes by government employees
standards, policies, guidelines and procedures in accounting for government funds and property
coding structure and accounts
accounting books, registries, records, forms, reports and financial statements
JERRINE END
Pau start
All of the above involves the physical transfer of cash except *
Remittance of taxes through the Tax Remittance Advice
Remittance of collections of revenue to the National Treasury
Remittance of employee contributions to GSIS, Pag-IBIG and PhilHealth
Remittance of excess cash advance by an officer
The budget preparation in the Philippines *
starts with the Budget Call from the BTr.
uses a “zero-bottoms-up” approach.
ends with the issuance of the “Bicam Version” by the Bicameral Committee.
uses a non-incremental approach.
Choose the correct statement. *
1 point
This refers to charges for the use of cash or cash equivalents, or amounts due to the
entity. *
1 point
Financial expenses
Personnel services
Interest income
Capital outlays
The receipt of a disbursement authority in the form of Non-Cash Availment Authority
(NCAA) is debited to which of the following accounts? *
1 point
Cash-Modified Disbursement System (MDS), Regular
Cash-Constructive Income Remittance
Accounts Payable
Subsidy from National Government
It refers to a fund which is available for any purpose other than those which other funds
have been designated to *
1 point
General fund
Major fund
Regular fund
All-purpose fund
The best estimate for a loss is ₱100,000. However, the entity deliberately overstated the
loss to ₱120,000. Which of the following qualitative characteristics is violated? *
1 point
Prudence
Reliability
Prudence and reliability
Nothing is violated
The receipt of an inter-agency fund transfer is recorded as *
1 point
Dr, Cash -Collecting Officer; Cr, SING
Dr, Cash-NTMDS; Cr, Due to Central Office/ Regional Office/ Operating Units
Dr, Cash-Collecting Officer; Cr, Due to Central Office/ Regional Office/ Operating Units
Dr, Cash- NTMDS; Cr, Accumulated Surplus (Deficit)
Which of the following government agencies will most likely be able to obtain a
disbursement authority in the form of Cash Disbursement Ceiling (CDC)? *
1 point
DA
NIA
DOLE
DENR
Entity A, a government entity, receives its ₱9M allotment. The journal entry to record
this event is *
1 point
Dr, Cash - Tax Remittance Advice, 9M; Cr, Due to National Government, 9M
No journal entry
Dr, Cash NTMDS, 9M; Cr, SING, 9M
Dr, Cash-Collecting Officer, 9M; Cr, SING, 9M
The basis of accounting required by the GAM for NGAs is *
1 point
Accrual basis
Modified accrual basis
Cash basis
Budget basis
Which of the following principles is not in accordance with the Basic Government
Accounting and Budget Reporting Principles under the GAM for NGAs? *
1 point
modified accrual basis of accounting in accordance with the PPSAS
budget basis for presentation of budget information in the financial statements (FSs) in
accordance with PPSAS 24
RCA prescribed by COA
financial statements based on both accounting and budgetary records
fund cluster accounting
This account is debited when government entities remit collections to the National
Treasury. *
1 point
Cash-Modified Disbursement System (MDS), Regular
Cash-Collecting Officers
Cash-Treasury/Agency Deposit, Regular
Cash-Tax Remittance Advice
After the budget call, budget hearings are made whereby agencies defend their
proposed programs and expenditures for the upcoming year before the *
1 point
Office of the President
DBM
Supreme Court
COMELEC
CSC
COA
Court of Tax Appeals
Senate
DOF
BIR
Court of Appeals
Congress
BTr
BOC
Entity A, a government entity, has withheld a total of ₱800,000 from the salary
payments to its employees representing contributions to the GSIS, Pag-IBIG and
PhilHealth. The pro-forma entry to record the remittance of the contributions to the
GSIS, Pag-IBIG or PhilHealth is *
1 point
Dr, Due to GSIS, PagIBIG and PhilHEALTH; Cr, Cash - Tax Remittance Advice
Dr, Due to GSIS, PagIBIG and PhilHEALTH; Cr, Cash - Collecting Officer
Dr, Due to GSIS, PagIBIG and PhilHEALTH; Cr, Cash - NTMDS
No journal entry
This account is debited when government entities remit collections to the National
Treasury. *
1 point
Dr, Accumulated Surplus (Deficit); Cr, Cash-Treasury/Agency Deposit, Regular
Dr, SING; Cr, Cash-Treasury/Agency Deposit, Regular
Dr, Cash -Collecting Officer; Cr, Cash-Treasury/Agency Deposit, Regular
None of the options. The account is not closed
PAU
Which of the following is not one of the registries maintained by a government entity? *
1 point
Registries of Allotments, Obligations and Disbursements
Registries of Journals and Ledgers
None of these are maintained by a government entity
Registry of Appropriations and Allotments
All of these are maintained by a government entity
Registries of Budget, Utilization and Disbursements
Department of Health, a government entity, has an unused NCA of ₱50,000 at the end of
the current year. The entry to record the reversion of unused NCA is *
1 point
Dr, Accumulated Surplus (Deficit), 50,000; Cr, Cash - Treasury, 50,0000
Dr, SING, 50,000; Cr, Cash - Collecting Officer, 50,000
Two of the choices
None of the choices
Dr, SING, 50,000; Cr, Cash, NTMDS, 50,000
All of the choices
What is the legal basis of the COA in promulgating the GAM for NGAs? *
1 point
Revised Penal Code, Art. 217
Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines
R.A. 9298
State Audit Code of the Philippines, P.D. No. 1445, Sec. 109
The NGAs are responsible for *
1 point
promulgating accounting and auditing rules and regulations.
implementing the national budget with the goal of attaining the nation’s socio-economic
objectives.
receiving and keeping national funds and managing and controlling the disbursements thereof.
directly implementing the projects of, and performing the functions delegated by, the government.
The basis of accounting required by the GAM for NGAs is *
1 point
President’s Fiscal Policy and Priorities
President’s Budget Message
National Expenditure Program
Budget of Expenditures and Sources of Financing
The entry to record the granting of cash advance for payroll fund is *
1 point
Dr, Due to Officers and Employees; Cr, Advances for payroll
Dr, Salaries and Wages and PERA; Cr, Due to GSIS, BIR, Pag-IBIG, PhilHEALTH and Officers and
Employees
Dr, Advances for payroll; Cr, Cash, NTMDS
Dr, Cash - Collecting Officer; Cr, Advances for payroll
Entity A, a government entity, bills ₱200,000 for Communications Network Fees (CNF).
Which of the following is the correct entry for the billing? *
1 point
Dr, AR, 200,000; Cr, CNF, 200,000
Dr, AR, 200,000; Cr, SING, 200,000
Dr, Cash-Collecting Officer, 200,000; Cr, CNF, 200,000
Dr, Cash-NTMDS, 200,000; Cr, CNF, 200,000
Under responsibility accounting, a cost is considered controllable at a given level of
managerial responsibility if *
1 point
the manager has the power to incur it within a given period of time.
the cost is non-recurring, can be measured with sufficient reliability and is not immaterial
the cost is a fixed cost, such that its incurrence is reasonably certain.
all of the options
none of the options
Which of the following is one of the Fundamental Principles for Revenue under the GAM
for NGAs? *
1 point
All of these
Temporary receipts may be issued to acknowledge the receipt of public funds; provided that, an
official receipt is issued within a short period of time as may be prescribed by the COA.
No payment of any nature shall be received by a collecting officer without immediately issuing an
official receipt in acknowledgement thereof. The receipt may be in the form of postage, internal
revenue or documentary stamps and the like, officially numbered receipts, subject to proper
custody, accountability, and audit.
Money in the hands of the Collecting Officer may be utilized for the purpose of cashing private
checks, upon proper endorsement and identification of the payee or endorsee. Checks drawn in
favor of the government in payment of any such indebtedness shall likewise be accepted by the
officer concerned.
This report, required of government entities, shows the names of creditors, the amounts
owed to them, and the number of days these obligations are outstanding. This report is
submitted to the COA and DBM within 30 days after the end of the year. *
1 point
List of Not Yet Due and Demandable Obligations
Aging of Due and Demandable Obligations
Percentage of Obligations Report
Report on Allotments, Obligations and Disbursements
The entry to record the receipt of a disbursement authority in the form of Cash
Disbursement Ceiling (CDC) is *
1 point
Dr, Cash - Constructive Income Remittance; Cr, SING
Dr, Accounts payable; Cr, SING
Dr, Accounts payable; Cr, Cash NTMDS
Dr, Cash NTMDS; Cr, SING
A government entity records a transaction by debiting an account with a Revised Chart
of Account (RCA) Code that starts with “1” and crediting an account with an RCA Code
that starts with “4.” This transaction is most likely a *
1 point
constructive remittance of taxes withheld to the BIR through TRA.
remittance of collection to the National Treasury.
payment of accounts payable.
receipt of inter-agency fund transfer.
Which of the following transactions is not recorded through a credit to the “Cash-
Modified Disbursement System (MDS), Regular” account? *
1 point
Reversion of unused NCA at the end of the period.
Payment of accounts payable wherein the tax portion is withheld.
Granting of cash advance for payroll.
Constructive remittance of taxes withheld to the BIR.
