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Quiz 1 Answered QUIZ Overview

Accountancy (Xavier University - Ateneo de Cagayan)

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TEST-Overview of Government Accounting

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

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

2. Which of the following qualitative characteristics may be sacrificed when reporting

information on a timely basis?
a. Relevance
b. Reliability
c. Substance over form
d. Faithful representation

3. According to the GAM for NGAs, information has this qualitative characteristic if it can
be used to assist in evaluating past, present or future events or in confirming or
correcting past evaluations.
a. Feedback value
b. Predictive value
c. Materiality
d. Relevance

4. A journal used to record cash collections.

a. General Journal
b. Cash Receipts Journal
c. Cash Disbursement Journal
d. Check Disbursement Journal
e. Answer not provided

5. Which of the following is one of the Fundamental Principles for Revenue under the GAM for NGAs?
a. 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.
b. 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.
c. 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.
d. All of these

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

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

communicating all transactions involving the receipt and disposition of government funds
and property, and interpreting the results thereof.
a. Government accounting
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TEST-Overview of Government Accounting

b. Government reporting
c. Government auditing
d. Tax accounting

8. This refers to the comparability between the financial statements of different entities?
a. Inter-comparability
b. Intra-comparability
c. Horizontal comparability
d. Vertical comparability

9. The Revised Chart of Accounts will tell that if the account code starts with the number 3,
that account is an:
a. Expenses
b. Asset
c. Liabilities
d. Equity
e. Revenue

10. 0-00-00-00-0. The underline code refers to:

a. GL Contra-Accounts
b. GL Accounts
c. Sub-Major Account Group
d. Major Account Group
e. Account Group

11. The GAM for NGAs is promulgated by the

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

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

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

13. Which of the following is a unique requirement of gov't accounting that is not required
in the accounting for business entities?
a. the use of double-entry recoding system
b. the use of single-entry recording system
c. the use of accrual basis of accounting
d. the presentation of budget information in the financial statements

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TEST-Overview of Government Accounting

14. What is the legal basis of COA in promulgating the GAM for NGAs?
a. P.D. No. 1445, State Audit Code of the Phils.
b. The Philippine Constitution
c. R.A. 9298, the Phil. Accountancy Act of 2004
d. Philippine Public Sector Accounting Standards (PPSAS)

15.According to the GAM for NGAs, the basis of accounting to be applied by gov't entities
is the
a. Cash basis
b. Accrual basis
c. Modified Accrual basis
d. Any of these as a policy

16. 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?
a. all employees who are entrusted with the possession of gov't resources
b. the head of the gov't agency
c. the COA
d. all elected officials

17. Mr. A, a gov't employee entrusted with the custody of gov't 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?
a. Mr. A shall not release the fund but rather notify Mr. B in writing that his instruction is illegal
b. Mr. A shall release the fund and then notify Mr. B in writing that his instruction is illegal
c. Mr. A shall release the fund but retains 20% commission
d. Mr. A shall release the fund but requires Mr. B to promise in writing that the car shall be
returned to the gov't after his daughter's birthday

18. 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.
a. Financial statement analysis and ratios
b. Understandability
c. Comparability
d. Feedback value or confirmatory value

19. Which of the following is not one of the fund clusters of a government entity?
a. Regular Agency Fund
b. Foreign Assisted Projects Fund
c. Special Account-Locally Funded/Domestic Grants Fund
d. Business Related Fund
e. Petty Cash Fund

20. Compared to the accounting for business entities, gov't accounting places greater
emphasis on the sources and utilization of gov't funds and the management's
stewardship over gov't resources
True
False
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TEST-Overview of Government Accounting

21. 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
false

22. The GAM for NGAs is promulgated primarily to harmonize government accounting
standards with the U.S GAAP.
True
False

23. The GAM for NGAs is promulgated by the Philippine Congress under the authority
conferred to itunder the Phil. Constitution
True
False

24. Mr. C, a gov't employee entrusted with the custody of gov't fund, has lost the gov't
funds entrustedto him in a force majeure. What should Mr. C do to relieve him from
liability?
a. Mr. C should immediately notify the Head of the Agency after 30 days
b. Mr. C should immediately notify the COA within 30 days
c. Mr. C should notify immediately the Bureau of Treasury within 30 days
d. Mr. C should keep the event a secret and wait for next funds to arrive

25. Currently, the financial reporting of national government entities is based on the New
Government Accounting System or NGAS
True
False

26. The best estimate for a loss is P100,000. However, the entity deliberately overstated
the loss toP200,000. Which of the following qualitative characteristic is violated?
a. Prudence
b. Reliability
c. A & B
d. Nothing is violated

27. Which of the following financial statements is peculiar to a government entity?

a.Balance Sheet
b.Statement of Cash Flows
c. Statement of Comparison of Budget and Actual Amounts
d. Statement of Changes in Equity

28. Which of the following is not a source of revenue for the government?
a. Taxes
b. Fees collected by the gov't agencies
c. Grants and donations from other government
d. Contract price on government contracts awarded to private companies

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TEST-Overview of Government Accounting

29. Money generated by the business through its primary operations which usually
include sales but isn’t limited just to sales
a. Revenue
b. Profit
c. Income
d. answer not provided

30. Which of the following is not charged with gov't accounting responsibility under the
GAM for NGAs
a. COA
b. DBM
c. NGAs
d. House of Representatives

“A wise man will hear and increase learning, and a man of understanding will attain wise counsel.”
(Proverbs 1:5)

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