Afgnpo Midterm
Afgnpo Midterm
Afgnpo Midterm
agency) in the current year. At the start of first quarter, Entity A receives authorization to incur
obligations for a maximum amount of P45B in that quarter. Entity A extends half of that authorization to
its lower operating units. During the quarter, Entity A receives monthly authorization to disburse funds
not to exceed P15B per month. Entity A extends half of those monthly authorizations to its lower
operating units. at the end of the quarter, total obligations incurred amounted to P40B while total
disbursements amounted to P35B.
The P15B monthly authorizations are received The P45B authorization is referred to as
by Entity A from
a. Obligation
a. BTr c. Congress
b. Allotment
b. DBM d. COA
c. Appropriation
a. DBM d. Sub-allotment
b. BTr
The P45B authorization is received by Entity A
c. COA from
d. Congress a. DBM
b. COA
b. Department of Budget and Management The half of the P45B authorization extended by
(DBM) Entity A (Central Office) to its lower operating
units is referred to as
c. Bureau of Treasury (BTr)
a. Allotment
d. Commission on Audit (COA)
b. Sub-Allotment
c. Appropriation
Select one:
d. Obligation
a. 230,000.00
b. P10B
The half of the P15B monthly authorizations
c. P6B extended by Entity A (Central Office) to its
lower operating units is referred to as
d. P5B
a. NCAA
c. Commission on Audit
This refers to charges for the use of cash or cash
d. Department of Budget and Management equivalents, or amounts due to the entity.
a. Financial expenses
a.
Both the ORS and RAOD are updated each time
b. No journal entry. an obligation is incurred, a payable is recorded
for the obligation incurred, and disbursements
c.
are made to settle the recorded payables.
d.
True
False
This refers to the comparability between the
financial statements of different entities?
Revenues of a government entity arise from
a. Vertical comparability
exchange transactions only.
True
Taxes are the main source of funds of the Which of the following reflects a Non-Cash
government. Availment Authority (NCAA) mode of
disbursement?
True
a.
False
b.
c. None of these
d.
Which of the following is correct regarding zero-
based budgeting?
b.
c. False
d. Feedback
According to the GAM for NGAs, information Entity A, a government entity, grants a ₱10,000
has this qualitative characteristic if it can be cash advance for the travelling expenses of an
used to assist in evaluating past, present or employee. The employee liquidates ₱8,000 of
future events or in confirming or correcting past the cash advance and remits the excess cash
evaluations. advance of ₱2,000. After recording the grant of
cash advance and the liquidation thereof but
a. Feedback value before adjustment for the collection of the
b. Predictive value excess cash advance, how much is the recorded
expense in the books of accounts?
c. Relevance
a.
d. Materiality
b.
c.
During the period, Entity A, a government
entity, withheld ₱100,000 taxes from its d.
payments to employees and suppliers. On Compared to the accounting for business
September 14 of the current year, Entity A entities, government accounting places greater
remitted the taxes withheld to the BIR through emphasis on the sources and utilization of
Tax Remittance Advice. The entry to record the government funds and the management's
remittance includes stewardship over government resources.
a. True
b. None of these False
c. The principles in the GAM for NGAs are similar
d. a and b to the principles in the PFRs.
True
False
This type of budget is prepared in such a way The GAM for NGAs aims to update all of the
that estimated revenues exceed estimated following except
expenditures. a. rules and regulations regarding the filing and
a. Balanced Budget payment of taxes by government employees
True True
False False
d. Zero-sum budgeting
The Commission on Audit (COA) is responsible
for
a. the formulation and implementation of the Which of the following does not properly
national budget with the goal of attaining the describe the budget process used in the
nation’s socio-economic objectives Philippines?
Obligations recorded in the registries but not a. The COA shall keep the general accounts of
yet in the accounting books are referred to as the Government and, for such period as may be
provided by law, preserve the vouchers and
a. Erroneous Recording
other supporting papers pertaining thereto,
b. Unpaid Obligations pursuant to Section 2, par. (1), Article IX-D of
the 1987 Philippine Constitution.
c. Not Yet Due and Demandable
b. The objectives of general purpose financial
d. Contingent Liabilities statements (GPFSs) are to provide information
about the financial position, financial
In the financial reporting system of the national
performance, and cash flows of an entity that is
government, to which of the following shall an
useful to a wide range of users in making and
entity reconciles its cash records?
evaluating decisions about the allocation of
a. Bureau of Treasury resources. Specifically, the objectives of general
purpose financial reporting in the public sector
b. Office of the President are to provide information useful for decision-
making, and to demonstrate the accountability
c. Department of Budget and Management
of the entity for the resources entrusted to it.
d. Commission on Audit
c. The DBM accounts for the cash, public debt
and related transactions of the NG.
The GAM for NGAs is promulgated by the d. The financial reporting system of the
Philippine Congress under the authority Philippine government consists of accounting
conferred to it under the Philippine system on accrual basis and budget reporting
Constitution. system on budget basis under the statutory
responsibility of the NGAs, Bureau of the
True Treasury (BTr), Department of Budget and
Management (DBM), and the COA.
False
a.
Arrange the following steps according to the
sequence that the appear in the budget cycle. b.
I. Allotment c.
True
According to the GAM for NGAs, revenue from b. Cash Disbursement Journal
exchange transactions are measured at the
c. Check Disbursement Journal
amount of cash received.
False
The main source of revenue for the government Which of the following accounts is debited
when a government entity remits its collections
is taxes.
to the National Treasury?
True
a. Cash-Tax Remittance Advice
False
b. Cash-Collecting Officers
b. P10B
A journal entry with a credit to the "Cash- All checks/ADA drawn during the day, whether
Modified Disbursement System (MDS), Regular" released or unreleased including cancelled
account will most likely be recorded in the checks shall be recognized chronologically in
the Checks/ADA Disbursement Record a. legal form
maintained by the Cash/Treasury Unit.
b. substance
a. Reporting of Disbursements.
c. a trade-off between a and b
b. Authority to Disburse/Pay.
d. either a or b, based on their significance
c. Disbursement Voucher/Payroll.
d. Maintenance of Records.
The Notice of Cash Allocation (NCA) is an
authority issued by the DBM to central, regional
and provincial offices and operating units to
According to the GAM for NGAs, the receipt of cover their cash requirements.
concessionary loans by government entities
may give rise to revenue recognition. True
True False
a. Disbursement
Currently, the financial reporting of the
b. Allotment
government entities is based on NGAs.
c. Disbursement authority
True
d. Obligation
False
Which of the following accounts is credited
After the budget call from the DBM, the
when a government entity remits contributions
to the BIR? proposed budget of various agencies are
submitted immediately to the Office of the
a. Cash-Treasury/Agency Deposit, Regular President for review.
b. NGAs a. Appropriation
d. Allotment
b. No payment of any nature shall be received a. implementing the national budget with the
by a collecting officer without immediately goal of attaining the nation’s socio-economic
issuing an official receipt in acknowledgement objectives.
thereof. The receipt may be in the form of
b. directly implementing the projects of, and
postage, internal revenue or documentary
performing the functions delegated by, the
stamps and the like, officially numbered
government.
receipts, subject to proper custody,
accountability, and audit. c. promulgating accounting and auditing rules
and regulations.
c. All of these
d. NONE OF THESE
False
The taxable event for income tax is the passage
This type of expenditure pertains to all types of
of the time period for which the tax is levied.
employee benefits.
True
a. Maintenance and Other Operating Expenses
False
b. Financial Expenses
c. Personnel Services
The principles used in the financial reporting of
government entities are very unique that only a d. Capital Outlay
very few of these principles are similar to those The “Cash – Treasury/Agency Deposit, Regular”
that are applied to business entities. account is used in which of the following
transactions?
True
e. None of these
A unique financial reporting requirement of
The GAM for NGAs requires the Collecting government entities is the use of fund cluster
Officer to issue an official receipt to accounting. Under the fund cluster accounting,
acknowledge the receipt of the Notice of Cash separate books and reports are prepared for
Allocation. each type of fund held by a government entity.
True True
False False
a. NCAA
What is the legal basis of the COA in The various registries maintained by
promulgating the GAM for NGAs? government entites are considered, technically
as
a. Article IX-D, Section 2 par. (2) of the 1987
Constitution of the Republic of the Philippines a. Budget records
c. Bottoms-up budgeting
d. Zero-based budgeting