Chapter 4
Revenues and Other Receipts
QUIZ
1. A government entity recognizes revenue from exchange or non-exchange transactions. Which of
the following may not give rise to revenue by a government entity?
a. Receipt of military equipment as donation from a foreign government.
b. Receipt of cash donation from an international organization.
c. Receipt of free trainings and seminars regarding process technology on farming from an
international organization.
d. Receipt of a bequest from the king of a foreign realm.
2. All of the following give rise to the recognition of revenue from non-exchange transaction except
a. sale of goods c. fines and penalties
b. taxes d. donation of goods in-kind
3. According to P.D. 1445, all revenues of an entity shall be remitted to the National Treasury and
included in the
a. General Fund c. National Fund
b. Special Fund d. Official Fund
4. Remittances of collections to the National Treasury are recorded as a debit to which of the
following accounts
a. Cash – Collecting Officers
b. Cash-Treasury/Agency Deposit, Regular
c. Cash-Modified Disbursement System (MDS), Regular
d. Subsidy from National Government
5. The national government received a foreign grant conditioned on the construction of a public
infrastructure. Entity A was chosen as the implementing agency. When the national government
received the grant, the entry in the BTr’s books included a
a. credit to the “Subsidy from National Government” account.
b. debit to the “Cash – Modified Disbursement System (MDS), Regular” account.
c. credit to the “Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas” account.
d. credit to the “Other Deferred Credits” account.
6. At the end of the period, the “Cash-Treasury/Agency Deposit, Regular” account is closed to the
a. Subsidy from National Government account.
b. Accumulated Surplus or Deficit account.
c. Cash-Modified Disbursement System (MDS), Regular account.
d. This account is not closed.
7. Which of the following does not give rise to revenue from assistance or subsidy?
a. Inter-agency Fund Transfer
b. Notice of Cash Allocation
c. Tax Remittance Advice
d. Non-Cash Availment Authority
8. According to P.D. 1445,
a. Amounts received in trust and from business-type activities of the government may be
separately recorded.
b. All revenues of an entity shall be retained by the entity and included in its General Fund,
unless another law specifically allows otherwise.
c. A collecting officer shall immediately issue a temporary receipt upon collecting a payment of
any nature.
d. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash
receipts, the BIR may approve, upon request, the exemption from the use of accountable
forms.
9. According to the GAM for NGAs, revenue includes only those that are received or receivable by
the entity in its own account. Accordingly, receipts on behalf of another entity are
a. recorded as liability.
b. recognized as revenue.
c. recorded only in the registries but not in the books of accounts.
d. remitted only through the use of the TRA.
10. Government entities and business entities use the same accounting treatment for all of the
following except
a. trade discounts allowed to customers.
b. recognizing revenue from royalty agreements.
c. recognizing revenue from dividends.
d. remittance of taxes withheld to the BIR
“There is a time for everything, and a season for every activity under the heavens;” (Ecclesiastes 3:1)
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