TEST I - Fill in the Missing Items

A. The UACS Object Code structure consists of ten (10) mandatory digits as provided by COA Cir. No.
2013-002: Please provide the classification of the codes. (Note: Answer should be in all capital letters)

Answer

ACCOUNT GROUP

Answer

MAJOR ACCOUNT GROUP

00

Answer

SUB-MAJOR ACCOUNT GROUP

00

Answer

GENERAL LEDGER ACCOUNT

00

Answer

GENERAL LEDGER CONTRA ACCOUNT

Answer

UACS SUB-OBJECT CODE

00
B. Provide the missing code

Question 2

It represents the accounts classification as to assets, liabilities, equity, income and expenses

a. Sub-Major account Group

b. Major Account Group
c. Codes
d. Account Group
The correct answer is: Account Group
Question 3

Which of the following is charged with government accounting responsibility?

a. All of the choices

b. Commission on Audit (COA)
c. National Government Agency (NGA)
d. Bureau of Treasury (Btr)
e. Department of Budget and Management (DBM)
The correct answer is: All of the choices

Question 4

What is the government entity charged with the responsibility and approval of accounting system for
government agencies?

a. Commission of Audit
b. Bureau of Treasury
c. Bangko Sentral ng Pilipinas
d. Department of Budget and Management
The correct answer is: Department of Budget and Management

Question 5

A Feature of government accounting that provides for the ceiling or maximum amount an agency can
spend or incur in the performance of its functions is known as

a. Obligation Accounting
b. Fund Accounting
c. Budgetary Accounting
d. Responsibility Accounting
The correct answer is: Obligation Accounting

Question 6

Which of the following is Inter- agency receivable in the Revised Chart of Accounts?

a. Due from Central Office

b. Due from Non-government Organization/People's Organization
c. Due from joint venture
d. Due from Bureaus
The correct answer is: Due from joint venture
Question 7

Under the DOF/DBM/COA Join Circular NO. 1-2000 January 3, 2000. An accountable document to be
issued by the concerned DBM Office, which shall be the basis for the NGAs to record the remittance of
all taxes withheld to the BIR. The same document shall be the basis for the BIR and the BTr to record
the tax collection and deposit in their respective books of account

A. TAX REMITTANCE ADVICE (TRA)

B. NOTICE OF CASH ALLOCATION (NCA)
C. ALLOTMENT RELEASE ORDER (ARO)
D. SPECIAL ALLOTMENT RELEASE ORDER (SARO)
The correct answer is: TAX REMITTANCE ADVICE (TRA)

Question 8

Are assigned to account groups to facilitate location of accounts in the general and subsidiary ledgers,
provide systematic arrangement and classification of accounts, and facilitate preparation of
consolidated financial statements/reports.

a. Sub-Major account Group

b. Major Account Group
c. Account Group
d. Codes
The correct answer is: Codes

Question 9

Organization Codes is one of the key elements of Unified Accounts Codes Structure (UACS). Which of
the following is NOT one of those reflected by this element?

a. Operating Unit
b. Agency
c. Government-Owned and Controlled Corporation
d. Department
The correct answer is: Government-Owned and Controlled Corporation

Question 10

Which of the following is not one of the fund clusters of a government entity?

a. Regular Agency Fund

b. Petty Cash Fund
c. Foreign Assisted Projects Fund
d. Business Related Funds
The correct answer is: Petty Cash Fund
Question 11

Which constitutional provision is incorrect?

a. All money collected on any tax levied for a special purpose shall be treated as general fund and paid
out for the special purpose only.

b. A special appropriation bill shall specity the purpose for which it is intented and shall be supported by
funds actually available as certified by the National Treasurer or to be raised by a corresponding revenue
proposal therein.

c. No money shall be paid out of the National Treasury except in pursuance of an appropriation made by
law.

d. No law shall be passed authorizing transfer of appropriations.

The correct answer is: All money collected on any tax levied for a special purpose shall be treated as
general fund and paid out for the special purpose only.

Question 12

Only one fund, General fund, shall be maintained. The General Fund is available for all functions of
government. However, separate fund accounting for Special Purpose Fund shall be done.

a. When specificaly required by law

b. When specificaly required by a donor agency

c. When otherwise necessitated by circumstances subject to approval by COA

d. All of the Choices

The correct answer is: All of the Choices

Question 13

Personal services include

a. Advertising rent, insurance and gasoline

b. Salaries allowances and bonuses

c. Traveling, trainng and seminar, telephone and internet

d. Bank charges, interest and losses or foreign exchange transactions

The correct answer is: Salaries allowances and bonuses

Question 14

Which of the following is a sub-major account group in a Revised Charts of Accounts?

a. Asset
b. Cash on Hand
c. Cash and Cash Equivalents
d. Petty Cash Fund
The correct answer is: Cash on Hand

Question 15

According to Joint Circular No. 2013-1 dated August 6, 2013, the following departments jointly
developed the Unified Accounts Code Structure (UACS), except:

a. Joint Legislative - Executive Council

b. Department of Budget and Management

c. Commission on Audit

d. Department of Finance

The correct answer is: Joint Legislative - Executive Council

Question 16

This account is debited by the Bureau of the Treasury (BTr) to recognize deposits with the Bangko
Sentral ng Pilipinas (BSP) for the operation of the Treasury Single Account (TSA); other deposits to the
BSP of collections from national government agencies (NGAs) and government financial institutions/
government-owned or controlled corporations (GFIs/GOCCs); proceeds from issuances/flotations and
maturities of Treasury Bills and Treasury Bonds; and fund transfers from other cash accounts of the
TOP.

A. Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas

B. Cash in Bank-Foreign Currency, Bangko Sentral ng Pilipinas

C. Cash in Bank-Local Currency , Current Account

D. Cash in Bank-Local Currency , Savings Account

The correct answer is: Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas
Question 17

Only one fund, General fund, shall be maintained. The General Fund is available for all functions of
government. However, separate fund accounting for Special Purpose Fund shall be done.

a. When specificaly required by law

b. When specificaly required by a donor agency

c. When otherwise necessitated by circumstances subject to approval by COA

d. All of the above

The correct answer is: All of the above

Question 18

Location Codes is none-digit code to reflect different are following the Philippine Standard Geographic
Code prescribed by the National Statistical Coordination Board. Which of the following area is NOT
covered by the Location Codes under UACS?

a. Municipality
b. Proviince
c. Barangay
d. Street
The correct answer is: Street

Question 19

One of the key elements of Unified Accounts Codes Structure (UACS) is the Funding Source Codes.
Which of the following is NOT part of Funding Source Codes?

a. Authorization
b. Revised Chart of Accounts
c. Financing Source
d. Fund Category
The correct answer is: Revised Chart of Accounts

Question 20
According to the Revised Chart of Accounts per COA Circular 2013-002, which of the following is a Sub-
Major Account Group?
a. Sinking Fund
b. Loans and Receivable account
c. Cash and Cash Equivalent
d. Liability Account
The correct answers are: Loans and Receivable account, Sinking Fund
Question 21

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
The correct answer is: Statement of Comparison of Budget and Actual Amounts

Question 22

Which of the following is Intra- agency receivable in the Revised Chart of Accounts?
a. Other Receivables
b. Due from Local Government Units
c. Due from Government-Owned and Controlled Corporations
d. Due from Operating Units
The correct answer is: Due from Operating Units

Question 23

It is a political corporate unit of government which serves as a dynamic mechanism for development
process and effective governance of local government units within its territorial jurisdiction.

a. Municipality
b. Province
c. Barangay
d. Region

The correct answer is: Province

Question 24

According to the Revised Chart of Accounts per COA Circular 2013-002, which of the following is an
Account Group?

a. Assets Account

b. Treasury Bills

c. Cash in Bank - Local Currency

d. Investment Account

The correct answer is: Assets Account

Question 25

The Unified Accounts Code Structure (UACS)

Statement I - Is a government-wide harmonized budgetary, treasury, and accounting code

classification that will facilitate reporting of all financial transactions of government agencies.

Statement II - Its objective is to establish the accounts and codes needed in reporting the financial
transactions of the National Government Agencies; and therefore, will be used by all departments and
agencies of the National Government and Government-Owned and/or Controlled Corporations
(GOCC) with Budgetary Support from National Government including those maintaining Special
Accounts in the General Fund.

Statement III - It provides a framework for identifying, aggregating and reporting financial
transactions in budget preparation, execution, accounting and auditing.

Statement IV - When this object coding is combined with budget classification coding for funding
source, organization, location and program, this framework collectively provides the harmonized
budgetary and accounting classification codes know as UACS.

A. Statements I, II, IV are correct

B. Statements I, II, III are incorrect

C. All statements are correct

D. All statements are incorrect

The correct answer is: All statements are correct

Question 26

It represents disaggregation of selected assets, liabilities, revenue/income, and expenses.

a. UACS Sub-Object Code

b. The Revised Chart of Accounts Code (eight digits)

c. UACS Object Code

d. The UACS Object Code (eight digits)

The correct answer is: UACS Sub-Object Code

Question 27

This account is debited to recognize the NCA received for its operating requirements. This account is
credited upon issue of MDS checks/Advice to Debit the Account (ADA) and reversion of lapsed NCA
with a corresponding debit to Subsidy from NG account

a. Cash-Modified Disbursement System (MDS), Trust

b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Modified Disbursement System (MDS), Special Account
d. Cash-Tax Remittance Advice
The correct answer is: Cash-Modified Disbursement System (MDS), Regular

Question 28

Which of the following is NOT personnel Services?

a. Labor and wages

b. Pension Benefits
c. Clothing/Uniform Allowance
d. Salaries and Wages - Regular
The correct answer is: Labor and wages

Question 29

According to the Revised Chart of Accounts per COA Circular 2013-002, which of the following is a
Major Account Group?

a. Liability Account
b. Loans and Receivable account
c. Sinking Fund
d. Cash and Cash Equivalent
The correct answer is: Cash and Cash Equivalent

Question 30

What is the basis for coding the object classification in the COA Revised Chart of Accounts?

a. Cash Basis

b. Modified Accrual Basis

c. Accrual Basis

d. Modified Cash Basis

The correct answer is: Accrual Basis

Question 31

It serves primarily as a general-purpose government for the coordination and delivery of basic, regular
and direct services and effective governance of the inhabitants within its territorial jurisdiction.

a. Region

b. Municipality

c. Province

d. Barangay

The correct answer is: Municipality

Question 32

Which of the following is tasked in keeping the general accounts of the government, supporting
vouchers and other documents?

a. DBM

b. NGAs

c. Congress

d. COA

The correct answer is: COA

Question 33

Is used in the recognition of transactions in the books of accounts and in the generation of financial
reports which requires details by sub-object codes. Examples are Trial Balances and Financial
Accountability Reports. It consists of the RCA Code (eight digits) and the UACS Sub-Object Code (two
digits).

a. The Revised Chart of Accounts Code (ten digits)

b. The Revised Chart of Accounts Code (eight digits)

c. The UACS Object Code (eight digits)

d. The UACS Object Code (ten digits)

The correct answer is: The UACS Object Code (ten digits)
Question 34

It serves as the primary planning and implementing unit of government policies, plans, programs,
projects and activities in the community, and also as a forum where the collective views of its
constituents may be expressed, crystallized and considered, and where disputes may be amicably
settled

a. Province

b. Barangay

c. Region

d. Municipality

The correct answer is: Barangay

Question 35

It represents classification within account group, e.g. for asset major account: cash and cash
equivalent,etc.

a. Major Account Group

b. General Ledger Contra Accounts

c. Sub-Major account Group

d. General Ledger Accounts

The correct answer is: Major Account Group

 1. Technically, only the Journals and Ledgers are considered accounting records the registries, and
budget records.

TRUE

 2. The DBM 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.

FALSE

 3. Separate accounting records and budget registries are maintained for each fund cluster.

TRUE
 4. In the event that Management strongly believes that compliance with the requirement of PPSAS would
result in a misleading presentation that it would contradict the objective of the FSs set forth in PPSAS, the
entity can't depart from that requirement if the relevant regulatory framework allows, or otherwise does
not prohibit such a departure.

FALSE

 5. Government entities and business entities use the term "obligation" or the phrase" incurrence of
obligation" similarly.

FALSE

 6. Fiscal responsibility shall, to the greatest extent, be shared by all authority over the financial affairs,
transactions, and operations of the government agency.

FALSE

 7. The Various registries maintained by government entities primarily serve as an internal control for
controlling and monitoring the conformance of actual results with the approved budget.

TRUE

 8. A check disbursement is normally recorded as a debit to the "Cash-Modified Disbursement System
(MDS), Regular account.

FALSE

 9. 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.
TRUE

 10. An entity whose financial statements comply with PPSASs shall make an explicit and unreserved
statement of such compliance in the notes. Financial statements shall not be described as complying with
PPSASs unless they comply with all the requirements of PPSASs. Inappropriate accounting policies that do
not comply with PPSAS are not rectified either by disclosure of the accounting policies used, or by notes
or explanatory material.
TRUE

 11.Disbursement or disposition of government funds or property shall invariably bear the approval of the
proper officials.

TRUE

 12. At the end of each year, an adjustment is made to revert any unused NCA of a government entity.

TRUE
 13. The GAM for NGAs requires the Collecting Officer to issue an official receipt to acknowledge the
receipt of the Notice Cash Allocation.

FALSE

 14. Every officer of any government agency whose duties permit or require the possession or custody of
government funds or property shall be accountable therefor and for the safekeeping thereof in
conformity with law. Every AO shall be properly bonded in accordance with law. 

TRUE

 15. 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.

TRUE

 16. Except as may otherwise be specifically provided by law or competent authority, all moneys and
property officially received by a public officer in any capacity or upon any occasion must be accounted for
as government funds and government property.

TRUE

 17. No funds shall be disbursed, and no expenditures or obligations chargeable against any authorized
allotment shall be incurred or authorized in any department, office, or agency without first securing the
certification of its Chief Accountant or head of accounting unit as to the availability of funds and the
allotment to which the expenditure or obligation may be properly charged.

TRUE

 18. 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.
FALSE

 19. It is the declared policy of the State that all resources of the government shall be managed, expended
or utilized in accordance with laws and regulations, and safeguarded against loss or wastage through
illegal or improper disposition, with a view to ensuring efficiency, economy and effectiveness in the
operations of government. The responsibility to take care that such policy is faithfully adhered to rests
directly with the chief or head of the government agency concerned.

TRUE

 20. All moneys appropriated for functions, activities, projects and programs shall be available solely for
the specific purposes for which these are appropriated.

TRUE
TEST II - Problem
Instruction: Read careful the comprehensive problem and answer each questions
A. - Government Process
A legislative approves the allocation of P200B Funds to support the operations of Entity
ABC (a government agency) in the current year. At the start of first quarter, Entity ABC
receives authorization to incur obligations for a maximum amount of P145B in that
quarter. Entity ABC extends half of that authorization to its lower operating units. During
the quarter, Entity ABC receives monthly authorization to disburse funds not to exceed
P115B per month. Entity ABC extends half of those monthly amortizations to its lower
operating units. At the end of the quarter, total obligations incurred amounted to P140B
while total disbursements amounted to P134B.
Questions:
1. The allocation of the P200B Funds to Entity ABC is referred to as
The correct answer is: Appropriation

2. The allocation of the P200B funds to Entity A is authorized by 

The correct answer is: Congress

3. The P145B Authorization is referred to as

The correct answer is: Allotment

4. The P145B Authorization is received by Entity ABC from

The correct answer is: DBM

5. The half of the 145B authorization extended by Entity ABC (Central Office to its
lower operating units is referred to as 
The correct answer is: Sub-Allotment

6. Which of the following best describes the P115B monthly authorizations?

The correct answer is: Disbursement Authority (e.g. NCA)

7. The P115B Monthly authorizations are received by Entity  ABC From

The correct answer is: DBM

8. The half of the P115B Monthly authorizations extended Entity ABC (Central
office) to its lower operating units is referred to as.
The correct answer is: Notice of Transfer of Allocation (NTA)
9. In Entity ABC's First quarter Statement of Appropriatoions, Allotments,
Obligations, Disbursements and Balances, How much is shown as "unreleased
appropriations".
The correct answer is: P55B

10. In Entity ABC's first quarter Statement of Appropriations, Allotments,

Obligations, Disbursements and Balances, How much is shown as "unobligated
allotments"?
The correct answer is: P5B

11. In Entity ABC's, first Quarter Statement of Appropriations, Allotments,

Obligations, Disbursements and Balances, How much is shown as "unpaid
obligations?
The correct answer is: P6B

Problems on Accumulated Surplus (Deficit)

A. - Entity B, A Government entity, had the following transactions during the period.

 Received of NCA amounting to P750,000

 Earned total revenue of P290,000 from billings and collections of unbilled income
 Incurred total expenses of P885,000
 Remitted Total taxes withheld of P140,000 to the BIR through Tax Remittance
Advice
 The "Cash Modified Disbursement System (MDS), Regular" has an unused
balance of P43,000 at the end of the period.

How much is the surplus (deficit) for the period?  (note for deficit just put a negative
sign (-) before the number)
ANSWER: 252,000

B. - The trial balances of Entity A, a government entity, show the following amounts:

 Unadjusted Trial Balance - P 2,753,000

 Adjusted Trial Balance - P 2,765,000
 Statement of Financial Position (Debit Column) - P 1,137,000
 Statement of Finacial Performance (Credit Column) - P 1,880,000

How much is the surplus (deficit for the period)? (note for deficit just put a negative
sign (-) before the number)
ANSWER: 743,000
Which of the following does not effect the amount of surplus or deficit that is reported
in the statement of financial performance?

a. Closing of the "Cash-Treasury/Agency Deposit, Regular" account

b. Constructive remittance of taxes withheld through TRA

c. All of these affect surplus of deficit

d. Adjustment of the "Cash-Modified Disbursement System (MDS), Allocation.

e. Receipt of NCA

The correct answer is: All of these affect surplus of deficit

The is used to recognized the constructive remittance of taxes withheld to the BIR or
Customs duties withheld to the BOC.

The correct answer is: Tax Remittance Advice (TRA)

In accordance with the GAM for NGAs and the Revised Chart of Accounts, how does a
government entity recognize the uncollectability of accounts receivable?

The correct answers are: By debiting the "Bad Debts Expense" account., By debiting the "
Impairment Loss-Loan and Receivables" account.

A journal entry with a credit to the "Cash-Modified Disbursement System (MDS),

Regular" account with most likely be recorded in the

The correct answer is: Check Disbursements Journal

The receipt of an allotment is recorded by a government entity in the

The correct answer is: A and C (RAOD & RAPAL)

The various registries maintained by government entities are considered, technically, as

The correct answer is: Budget Records

According to the Revised Chart of Accounts (RCA) issued by the COA, the "Subsidy from
National Government" account is a (an).

The correct answer is: Revenue Account

Which of the following is not one of the special journals prescribed by the GAM for
NGAs?

The correct answer is: Sales Journal

The receipt of Notice of Cash Allocation is recorded in the.

The correct answers are: Books of accounts (Journal and Ledger), Registry of Allotments
and Notice of Cash Allocation (RANCA), A and B

This type of expenditure pertains to all types of employee benefits.

The correct answer is: Personnel Services (PS)

Which of the following accounts is debited when a government entity remits its
collections to the National Treasury?

The correct answer is: Cash-Treasury/Agency Deposit, Regular

Which of the following accounts is credited when a government entity remits

contributions to the GSIS, PhilHealth and PAG-IBIG?

The correct answer is: Cash - Modified Disbursement System (MDS), Regular

The incurrence of an obligation for future delivery or performance by the obligee is recorded by
a government entity in the

Feedback
The correct answer is: A and B (RAOD & ORS)
Which of the following expenditures is not shown in the statement of financial performance?

Feedback
The correct answer is: Capital Outlays (CO)

Expenditures to acquire long-term assets are most likely classified as

Feedback
The correct answer is: Capital Outlays (CO)

The entry to record the receipt of Notice of Cash Allocation (NCA) By a government entity is:

Feedback
The correct answer is: (Debit) Cash-Modified Disbursement System (MDS), Regular; (Credit)
Subsidy from National Government.

The "Subsidy from National Government" account is credited when recording a

Feedback
The correct answer is: A and C (Receipt of NCA & Reversion of Unused NCA)

The receipt of an appropriation is recorded by a govenrment entity in the

Feedback
The correct answer is: RAPAL

A government entity pays an accounts payable. The entry to record the payment will most likely
include a

Feedback
The correct answer is: Credit to the "Due to Bir" account.
Obligations recorded in the registries but not yet in the accounting books are reffered
to as
Feedback
The correct answer is: Not Yet Due and Demandable

20826-ACCOUNTING FOR GOVERNMENT AND NON- PROFIT ORGANIZATIONS

Question 1

Correct

Mark 1.00 out of 1.00

Question text

All appropriation, revenue or tariff bills, bill authorizing increase of the public debt, bill of local
application, and private bills shall originate exclusively in the

a. Senate but the House of Representatives may propose or concur with amendments.

b. Executive Department but Congress may propose and concur with amendments.

c. House of Representative but the Senate may propose or concur with amendments.

d. Department of Budget and Management subject to the approval of the Commission on Audit.

Question 2

It is system of prescibing the procedures for recording appropriations, allotments and obligations.

a. Obligation Accounting

b. Treasury disbursement coding system

c. Fund Accounting

d. Budgedtary Accounting

Question 3

A Feature of government accounting that provides for the ceiling or maximum amount an agency can
spend or incur in the performance of its functions is known as

a. Budgetary Accounting

b. Responsibility Accounting

c. Obligation Accounting
 d. Fund Accounting

Question 4

Arrange the following steps according to the sequence that they appear in the budget cycle

I. Presidents' enactment of the GAA

II. The President Approves the proposed budget

III. Bicameral Deliberations

IV. Budget Accountability Reports

V. Budget Hearings

a. V, II, III, I, IV

b. V, I, II, III, IV

c. V, I, III, II, IV

d. V, III, II, I, IV

Question 5

It is a statement of estimated receipts and estimated expenses of the government which serves as
bases for a general appropriation bill.

a. Local Government Budget

b. Budget Matrix

c. Statement of operations

d. National Government Budget

Question 6

The following are the documents/reports submitted to DBM. Which documents/reports relates to
Budget Execution Documents (BEDs)

I. Physical and financial plan

II. Monthly Cash Program

III. Monthly Report of Disbursements

IV. Estimate of Monthly Income

V. List of Allotments and Sub-Allotments

VI. Estimate of Monthly profit

VII. List of obligations that are not yet due and demandable

a. Only I, II,V,VI

b. Only I, II,IV,VII

c. All given documents relates to BEDs

d. Only I, III,V,VI

Question 7

Which branch of government prepares the national government budget?

a. Executive Department

b. Legislative Department

c. All three branches of government

d. Judicial Department

Question 8

The phase in the national budget cycle which involves the comparison of performance with
predertermined plans and the evaluation of expenditures and performance is called.

a. Execution

b. Accountability

c. Preparation

d. Authorization

Question 9

The following statements relates to budget

Statement I. When proposed budget is not enacted before the fiscal year starts, the last year's GAA is
not automatically reenacted. The last year's GAA shall be used in the current year until a new general
appropriations bill is passed by the congress.
Statement II. A Special appropriations bill shall specify the purpose for which it is intended, and shall be
supported by funds actually available as certified by the DBM, or to be raised by a corresponding
revenue proposal therein.

Statement III. No law shall be passed authorizing any transfer of appropriations; However, the president,
the president of the senate, the speaker of the House of Representatives, the Chief Justice of the
Supreme Court, and the heads of constitutional Commissions may, by law, be authorized to augment
any item in the general appropriations law for their respective offices from savings in other items of
their respective appropriations.

a. Only Statement III is correct

b. Only Statement II & III are correct

c. All statements are correct

d. Only Statement I is correct

Question 10

An agency received the following allotment for the year 2015:

Capital Outlay (CO) P40,000,000

Maintenance and Other Operating Expenses (MOOE) 12,000,000

Personal Services (PS) 6,000,000

Financial Expenses (FE) 200,000

58,200,000

The entry to record the above allotment would be:

A. Cash - Modified Disbursement System - Regular 58,200,000

Subsidy Income National Government 58,200,000

B. National Clearing Account 58,200,000

Appropriatons Alloted 58,200,000

C. NO ENTRY

D. Memorandum entry in Registry of Allotments and Obligations

Question 11

In government accounting, which of the following is capital outlay

 A. Salaries and Wages

B. Repairs and Maintenance

C. Land Improvement

D. Merchandise Inventory

Question 12

Entity AAA, a government entity, wants to make disbursements arrange the following events in the
correct sequence before entity A cant make valid disbursements

I. Allotment

II. Disbursement Authority

III. Appropriation

IV. Incurrence of obligation

a. III, I, IV, II

b. III, II, I, IV

c. II, III, IV, I

d. II, III, IV, I

Question 13

It is the formal document issued by DBM to the head of the agency containing the authorization,
condition and amount of allocation.

a. Allotment and Obligation Slip

b. Allotment Release Order

c. Notice of Cash Allocation

d. Registry of Allotment and Obligation

Question 14

To control the allotments and obligations of the four classes of allotments, the following registries
shall be maintained by government agencies/unit.

A. RAOCO, RAOPS, RAOFE, AND RPI

B. RAOCO, RAOPS, RAOMO, AND RAOFE

 C. RAOCO, RAOPS, RAOMO, AND RANCA

D. RAOCO, RAOPS, RAOMO, AND RPI

Question 15

The following statements relates to an approved budget:

I. Automatic Appropriations are annual authorizations for incurring obligations during a specified
budget year, as listed in the General Appropriations Act (GAA).

II. Supplemental Appropriations are additional appropriations enacted by Congress to augment original
appropriations that have proven insufficient for their intended purpose because of economic, political or
social conditions. Supplemental Appropriations must also be supported by a certification of availability
of funds by the DBM

III. New General Appropriations are authorizations made annually or for some other period prescribed
by law, by virtue of standing legislation, which do not require periodic action by the Congress

IV. Unprogrammed Funds are standby appropriations for secondary programs or projects of the
government.

a. All statements are correct

b. All statements III and IV are correct

c. All statements are incorrect

d. Only statements I and II are correct

Question 16

This is defined as the services, products or benefits accruing to the public estimated in terms of
performance target

a. Project

b. Resources

c. Program

d. Expected results

Question 17

All disbursements of government entities must be in conformance with the law and the

a. PPSASs
 b. PFRSs

c. COA audit findings

d. National Budget

Question 18

Agency A received Notice of Cash Allocation (NCA) - P35,000,000 for the year 2017: The entry would
be

A. Memorandum entry in Registry of Allotments and Obligations

B. Cash - Modified Disbursement System - Regular 35,000,000

Subsidy from National Government 35,000,000

C. NO ENTRY

D. National Clearing Account 35,000,000

Appropriation Alloted 35,00,000

Question 19

Under the DOF/DBM/COA Join Circular NO. 1-2000 January 3, 2000. An accountable document to be
issued by the concerned DBM Office, which shall be the basis for the NGAs to record the remittance of
all taxes withheld to the BIR. The same document shall be the basis for the BIR and the BTr to record
the tax collection and deposit in their respective books of account

A. ALLOTMENT RELEASE ORDER (ARO)

B. SPECIAL ALLOTMENT RELEASE ORDER (SARO)

C. TAX REMITTANCE ADVICE (TRA)

D. NOTICE OF CASH ALLOCATION (NCA)

Question 20

The 2021 General Appropriations Act (GAA) or the 2021 National Budget

a. P 4.100 Trillion pesos

b. P 4.150 Trillion pesos

c. P 4.506 Trillion pesos

d. P 5.150 Trillion pesos

Question 21

Statement I - Focus on the objects of expenditures such as salaries and wages, traveling expenses,
freight, supplies, materials and equipment.

Statement II - Is a process in the budget preparation which requires consideration of all programs,
projects and activities with the use of defined ranking procedures.

a. Statement II is correct

b. Statement I is correct

c. Both Statements are incorrect

d. Both Statements are correct

Question 22

It is the enactment of the general appropriation bill into law by congress.

A. Budget execution

B. Budget preparation

C. Budget authorization

D. Budget accountability

Question 23

The President may contract or guarantee foreing loans on behalf of the Republic of the Philippines
with the prior concurrence of

a. Monetary Board

b. Congress of the Republic of the Philippines

c. Supreme Court and subject to such limitations as may be provided by law

d. Monetary Board and Subject to such limitations as may be proviede by law

Question 24

It is a type of budgeting that focuses on the objects of expenditures such as salaries and wages,
traveling expenses, freight, supplies, materials and equipment.

a. Performance budget

b. Line item budget

 c. Special budget

d. Supplemental budget

Question 25

When a government official disburses government funds beyond the approved budget, the official
may be charged with

a. Technical Malversation

b. Estafa

c. Graft and Corruption

d. An administrative Case

Question 26

It is the preparation of the national government budget where the total estimated revenue must be
more than the total estimated expenditures.

a. Line Item Budget

b. Zero base Budget

c. Supplemental Budget

d. Balanced Budget

Question 27

The president of the Philippines shall submit to Congress as a basis of the general appropriation bill a
budget of expenditures and sources of financing within how many days/

a. 30 days from the beginning of the fiscal year

b. 30 days from the opening of every regular session.

c. 60 days from the beginning of the fiscal year

d. 60 days from the opening of every regular session.

Question 28

Budget Accountability means any of the following, except

a. Periodic reporting by the government agencies of performance under the approved budget

b. Top management review of government activities and the fiscal and policy implications thereof.
c. Establishing of obligation authority ceilings, and regulation of fund release and implementation of
cash payment schedules

d. The action of COA in assuring fidelity of government officials and employees by carrying out the intent
of Congress in regard to their handling of receipts and expenditures.

Question 29

It is the implementation of the national goverment budget by different departments and release of
allotments.

a. Budget authorization

b. Budget execution

c. Budget preparation

d. Budget accountability

Question 30

Which constitutional provision is incorrect?

a. All money collected on any tax levied for a special purpose shall be treated as general fund and
paid out for the special purpose only.

b. No money shall be paid out of the National Treasury except in pursuance of an appropriation
made by law.

c. A special appropriation bill shall specity the purpose for which it is intented and shall be
supported by funds actually available as certified by the National Treasurer or to be raised by a
corresponding revenue proposal therein.

d. No law shall be passed authorizing transfer of appropriations.

COLLEGE OF BUSINESS AND ACCOUNTANCY

TEST I:

Instructions: Give the full text of the following acronyms which are related to government accounting.

(Note: Answers should be in All Capital Letters)

1. COA Answer

COMMISSION ON AUDIT

2. DBM Answer
DEPARTMENT OF BUDGET AND MANAGEMENT

3. BTr Answer

BUREAU OF TREASURY

4. INTOSAI Answer

INTERNATIONAL ORGANIZATION OF SUPREME AUDIT INSTITUTIONS

5. GAM Answer

GOVERNMENT ACCOUNTING MANUAL

6. GOCC Answer

GOVERNMENT - OWNED AND/OR CONTROLLED CORPORATION

7. LGU Answer

LOCAL GOVERNMENT UNIT

8. PPSAS Answer

PHILIPPINE PUBLIC SECTOR ACCOUNTING STANDARDS

9. PPSASB Answer

PHILIPPINE PUBLIC SECTOR ACCOUNTING STANDARDS BOARD

10. PFRS Answer

PHILIPPINE FINANCIAL REPORTING STANDARDS

11. NGAS Answer

NEW GOVERNMENT ACCOUNTING SYSTEM

12. NGAs Answer

NATIONAL GOVERNMENT AGENCIES

13. IPSAS Answer

INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS

14. GBE Answer

GOVERNMENT BUSINESS ENTERPRISE

15. IFAC Answer

INTERNATIONAL FEDERATION OF ACCOUNTANTS

16. RANCA Answer

REGISTRY OF ALLOTMENTS AND NOTICE OF CASH ALLOCATION

17. RANTA Answer

REGISTRY OF ALLOTMENTS AND NOTICE OF TRANSFER OF ALLOCATION

18. RAPAL Answer

REGISTRY OF APPROPRIATION AND ALLOTMENTS

19. RRORS Answer

REGISTRY OF REVENUE AND OTHER RECEIPTS - SUMMARY

20. RBUD Answer

REGISTRY OF BUDGET, UTILIZATION AND DISBURSEMENTS

Question 2

TEST II. TRUE OR FALSE

Instruction: Read each following statement and determine if it is TRUE or FALSE.

1. Answer: FALSE

Taxes are the main source of funds of the government.

2. Answer: TRUE

Other sources of funds of the government include fees, borrowings, and grants from other
governments and international bodies.

3. Answer: FALSE

Currently, the financial reporting of government entities is based on NGAS.

4. Answer: TRUE

The principles in the GAM for NGAs are similar to the principles in the PFRSs.

5. Answer: TRUE
Compare to the accounting for government, business entities places greater emphasis on the sources
and utilization of government funds and the management's stewardship over government resources.

6. Answer: TRUE

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.

7. Answer: FALSE

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

8. Answer: TRUE

Responsibility accounting is a system that relates the financial results to a responsibility center, which
provides access to cost and revenue information under the supervision of a manager having direct
responsibility for its performance.

9. Answer: FALSE

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.

10. Answer: TRUE

Aside from providing information that is useful in making economic decisions, government accounting
also aims to demonstrate the accountability of the entity for the resources entrusted to it.

Question 3

TEST III - Identification

INSTRUCTION: Identify the following actual transactions/expenditures according to the following: Just
type the Capital letter which corresponds to the correct answer.

A - Irregular, B - Unnecessary, C - Excessive, D - Extravagant, E - Unconscionable

Answer

C- Excessive

1. Granting of cash advance in excess of estimated budget.

Answer

C- Excessive
2. Payment for repair of government equipment at a cost exceeding 30 percent of the current market
price of the same or similar equipment.

Answer

D- Extravagant

3. Payment for rent of expensive halls or rooms in luxury hotels or restaurants used for
meetings/seminars and other official functions, except when such hotels or restaurants are used for
government-sponsored international conventions, meetings, and the like.

Answer

E- Unconscionable

4. Payment of excessive and unreasonable retirement benefits.

Answer

B- Unnecessary

5. Grant of overtime pay for work that is not of urgent nature as to require completion within a
specified time or that can be undertaken during regular office hours.

Answer

A- Irregular

6. Use of government motor vehicles for private social functions such as receptions, balls, theaters and
for other personal purposes; use by spouse, children, friends and the like, of the official entitled
thereto, even if they are in the company of said officials; or on Sundays, legal holidays or out of their
regular office hours or outside the route of the official or employee, unless properly authorized. (A.O.
No. 239 dated September 15, 2008).

Question 4

The following are considered GBE (Government Business Enterprises), except

A. Mactan Cebu International Airport Authority (MCIAA)

B. Land Bank of the Philippines (LBP)

C. Bangko Sentral ng Pilipinas (BSP)

D. Philippine Postal Corporations (PPC)

Question 5
Statement I - In order to formulate and implement public sector accounting standards and establish
linkages with international bodies, professional organization and academe on accounting related
fields on financial management, the Public Sector Accounting Standards Board (PSASB) was created
2008 by BOA to assist COA to adopt the IFAC - International Public Sector Accounting Standars (IPSAS)

Statement II - In developing standards of the Philippine Public Sector Accounting Standards (PPSAS),
PSASB Considers and make use of, among others, the existing laws, financial reporting, accounting
rules and regulations, and pronouncements issued by the International Public Sector Accounting
Standards Board (IPSASB)

Statement III - PSASB shall assist the commission in formulating and implementing Philippine Public
Sector Accounting Standards (PPSAS).

Statement IV - GBE is covered by the accounting standards issued by IFRS/PFRS but not IPSAS/PPSAS

A. Statements I, II,III are correct

B. All statements are incorrect

C. Statements II,III, IV are correct

D. All statements are correct

Question 6

Acts as principal custodian of the financial assets of the national government. ... It assists in the
formulation of policies on borrowing, investment, and capital market development; in managing cash
resources; in collecting taxes; and in controlling and servicing public debt.

a. Department of Budget and Management

b. Bureau of Treasury

c. Department of Finance

d. Commission on Audit

Question 7

Is authorized to make laws, alter, and repeal them through the power vested in the Philippine
Congress. This institution is divided into the Senate and the House of Representatives. It enacts
legislation, confirms or rejects Presidential appointments, and has the authority to declare war. This
branch includes Congress (the Senate and House of Representatives) and several agencies that
provide support services to Congress.

a. JUDICIARY

b. LEGISLATIVE BRANCH
 c. CONSTITUTIONAL COMMISSIONS

d. EXECUTIVE BRANCH

Question 8

The three major classification expenses of the government include

a. Personal services, mainentance and other operating expenses and other expenses

b. Personal services, selling expenses and general expenses

c. Personal services, mainentance and other operating expenses and other operating expenses

d. Personal services, maintenance and other operating expenses and financial expenses

Question 9

Statement I. There shall be a Commission on Audit composed of a Chairman and two Commissioners,
who shall be natural-born citizens of the Philippines and, at the time of their appointment, at least
thirty-five years of age, certified public accountants with not less than ten years of auditing experience,
or members of the Philippine Bar who have been engaged in the practice of law for at least ten years,
and must not have been candidates for any elective position in the elections immediately preceding
their appointment. At no time shall all Members of the Commission belong to the same profession.

Statement II. The Chairman and the Commissioners shall be appointed by the President with the
consent of the Commission on Appointments for a term of seven years without reappointment. Of those
first appointed, the Chairman shall hold office for seven years, one Commissioner for five years, and the
other Commissioner for three years, without reappointment. Appointment to any vacancy shall be only
for the unexpired portion of the term of the predecessor. In no case shall any Member be appointed or
designated in a temporary or acting capacity.

Statement III. The Commission on Audit shall have the power, authority, and duty to examine, audit, and
settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and
property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisions,
agencies, or instrumentalities, including government-owned or controlled corporations with original
charters, and on a pre-audit basis.

a. All statements are correct

b. Statement I and II are correct

c. Statement I and III are correct

d. Statement II and III are correct

Question 10
Article IX-D, Sec. 2(2)of the philippine constitution states that “The Commission On Audit shall have
exclusive authority, subject to the limitations in this Article, to define the scope of its audit and
examination, establish the techniques and methods required thereof and promulgate accounting and
auditing rules and regulations, including those for the prevention and disallowance of the following
expenditures IUEEU.

What is IUEEU stands for?

a. IRREGULAR, UNNECESSARY, EXCESSIVE, EXTRAVAGANT, UNCONSCIONABLE

b. IMMATERIAL, UNNECESSARY, EXCESSIVE, EXTRAVAGANT, UNCONSCIONABLE

c. IRREGULAR, UNNECESSARY, EXCESSIVE, EXTRASPECIAL, UNCONSCIONABLE

d. IRREGULAR, UNRELATED, EXCESSIVE, EXTRAVAGANT, UNCONSCIONABLE

Question 11

It shall be the framework in the preparation and presentation of the government financial statements.

a. PSA

b. PPSAS AND PFRS

c. PFRS

d. PPSAS

Question 12

Which of the following is charged with government accounting responsibility?

a. All of the choices

b. Bureau of Treasury (Btr)

c. National Government Agency(NGA)

d. Commission on Audit (COA)

e. Department of Budget and Management (DBM)

Question 13

The newly appointed acting secretary of DBM (Department of Budget and Management)

A. Janet B. Abuel

B. Florencio Abad
 C. Benjamin Diokno

D. Wendel E. Avisado

Question 14

Statement I - Responsibility accounting is a system that relates the financial results to a responsibility
center, which provides access to cost and revenue information under the supervision of a manager
having direct responsibility for its performance.

Statement II - It is a system that measures the plans (by budget) and actions (by actual results) of each
responsibility center.

Statement III- Responsibility accounting aims to: (1.) ensure that all costs and revenues are properly
charged/credited to the correct responsibili.y center so that deviations from the budget can be readily
attributed to manage 's accountable therefor; (2.) provide a to basis for making decisions for future
operations; and (3.) facilitate review activities, monitoring the performance of each responsibility center
and evaluation of the effectiveness of agency's operations.

Statement IV - Responsibility center, on the other hand, is a part, segment, unit or function of a
government agency, headed by a manager, who is accountable for a specified set of activities. Except for
some, which derive most of their income from collection of taxes and fees, national government
agencies are basically cost centers, whose primary purpose is to render service to the public at the
lowest possible cost. Cost centers are established to provide each government agency's accessibility to
cost information and to facilitate cost monitoring at any given period.

A. Statement I, II, IV are correct

B. All statements are Incorrect

C. Statement I, II, III are correct

D. All statements are Correct

Question 15

It is the formal document issued by DBM to the head of the agency containing the authorization,
condition and amount of allocation

a. Registry of Allotment and Obligation

b. Allotment Release Order

c. Notice of Cash Allocation

d. Allotment and Obligation Slip

Question 16
The following are considered a local government agencies, except

A. Municipality of Liloan, Cebu

B. Barangay Mabolo, Cebu

C. DENR - Regional office in cebu

D. PROVINCE OF BOHOL

Question 17

Who is our national Treasurer or the national treasurer of the republic of the Philippines?

a. Mr. Michael Aguinaldo

b. Mr. Wendel Avisado

c. Ms. Pulido Tan

d. Ms. Rosalia De Leon

Question 18

The Philippine Public Sector Accounting Standars (PPSAS) shall be applied to the following, except:

a. Government Business Enterprises

b. National Government Agencies

c. Government-Owned and/or Controlled Corporations

d. Local Government Units

Question 19

It holds the power to settle controversies involving rights that are legally demandable and
enforceable. This branch determines whether or not there has been a grave abuse of discretion
amounting to lack or excess of jurisdiction on the part and instrumentality of the government. It is
made up of a Supreme Court and lower courts.

a. Executive Branch

b. Constitutional Commission

c. Judicial Branch

d. Legislative Branch

Question 20
It carries out and enforces laws. It includes the President, Vice President, the Cabinet, executive
departments, independent agencies, boards, commissions, and committees.

a. Executive Branch

b. Judiciary

c. Legislative Branch

d. Constitutional Commission

Question 21

Statement I - Government Accounting Manual presents the basic accounting policies and principles in
accordance with Philippine Public Sector Accounting Standards (PPSAS) adopted through COA
Resolution No. 2014-003 dated January 24, 2014 and other pertinent laws, rules and regulations.

Statement II -This manual aims to update the following: 1.) standards, policies, guidelines and
procedures in accounting for government funds and property; 2.) coding structure and accounts; and,
3.) accounting books, registries, records, forms, reports and financial statements..

Statement III - It shall be used by all National Government Agencies (NGAs) in the: 1.) preparation of
the general purpose financial statements in accordance with the PPSAS and other financial reports as
may be required by laws, rules and regulations; and, 2.) reporting of budget, revenue and expenditure
in accordance with laws, rules and regulations.

Statement IV - Even under the new accounting system, government accounting is defined, pursuant to
Section 109 of PD 1445, as one which "encompasses the process of analyzing, recording, classifying,
summarizing and communicating all transactions involving the receipt and disposition of government
fund and property and interpreting the result thereof."

a. Only Statements I and III are correct

b. All statements are Correct

c. All statements are incorrect

d. Only Statements I and II are correct

Question 22

What is the legal basis of the COA in prescribing in New Government Accounting System?

a. Legastive Act

b. 1935 Constitution of the Philippines

c. Presendential Decree 1445

d. 1987 Constitution of the Philippines