QUIZ 4

Modes of Disbursements can be done by the following methods except:

• Cashless payments, Electrical Modified Disbursement System

• Cashless Purchase Card System

• Cashless payments, Non-Cash Availment Authority

• Cashless payments,Tax Remittance Advice

All of the following defines financial asset except:

• Cash

• A debt instrument of another entity

• A contractual right to receive cash or another financial asset from another entity

• A contractual right to exchange financial instruments with another entity under conditions that are potentially favorable

• A contract that will or may be settled in the entity's own equity instruments

Unreleased checks are checks drawn but not yet given to the payees as of the end of the period. The entry for the reversion of unreleased checks is

• Debit Cash in Bank, Local Currency-Current                  XX

            Credit         Accounts Payable                                                       XX

• Debit Cash in Bank, Local Currency-Current                  XX

            Credit         Accounts Receivable                                                   XX

• Debit Accounts Receivable                                            XX

              Credit    Cash in Bank, Local Currency-Current                   XX

•  

  Debit Cash in Bank, Local Currency-Current                  XX

            Credit         Retained Earnings                                                      XX

Bank reconciliations shall be prepared in _______ copies to be submitted within 20 days from receipt of bank statement.

__________ is a designated derivative or a designated non-derivative financial asset or non-derivative financial liability whose fair value or cash flows are expected to offset changes in the fair value or cash flows of designated hedged item

I.                 Janitorial services account is a professional service under Maintenance and Other Operating Expenses.

II.               COA Circular No. 2003-001 provides that other assets include work/other animals, breeding stock, items in transit, and art, archeological specimen and other exhibits. Specifically, construction in progress – agency asset is a capital outlay account.

• Only I is correct

• Only II is correct

• Both are correct

• Both are incorrect

The subsequent measurement for loans and receivables is:

• Fair value; changes in fair value are recognized in surplus/deficit.

• Amortized cost (using the effective interest method)

• Fair value; changes in fair value are recognized in equity

• Amortized cost (using the nominal interest method)

In case of accounts receivable, the allowance for impairment shall be provided in an amount based on collectability of receivable balances and evaluation of such factors as, except:

• aging of accounts

• collection experiences of the agency

• expected loss experiences

• unidentified doubtful accounts

Choose the incorrect one. The Petty Cash Fund of a government entity is:

• maintained using the imprest system

• sufficient to defray recurring petty expenses for 1 month

• used for disbursements exceeding P15,000 transaction

• replenished as soon as disbursements reach at least 75% or as needed

The write-down of inventory Net Realizable Value (NRV) or Current replacement costs, as appropriate is recognized as expense

• True

• False