Government Accounting Final Examination

Which of the following is not an indicator of reliable measurement for an asset?

• Benefits can be expected on the basis of available evidence or logic.

• Valuation method is free from material error or bias.

• Faithful representation of the asset’s benefits.

• Reliable information will, without bias or undue error, faithfully represent those transactions and events.

It refers to the disbursement authority issued by the DBM to agencies with foreign operations allowing them to use the income collected by their Foreign Service Posts to cover their operating requirements.

• Notice of Cash Allocation (NCA)

• Tax Remittance Advice (TRA)

• Cash Disbursement Ceiling (CDC)

• Non-Cash Availment Authority (NCAA)

Account titles in the Revised Chart of Accounts (RCA) are arranged according to this sequence

• Assets, Equity, Liability, Revenue, and Expenses

• Assets, Liability, Equity, Revenue, and Expenses

• Assets, Expenses, Liability, Equity and Revenue

• In no particular order.

Which of the following is an indication of impairment from internal sources?

• Significant changes with an adverse effect on the entity have taken place during the period, or will take place in the near future, in the technological, market, economic, or legal environment in which the entity operates, or in the market to which an asset is dedicated.

• During the period, an asset’s market value has declined significantly more than would be expected as a result of the passage of time or normal use.

• Significant changes with an adverse effect on the entity have taken place during the period, or are expected to take place in the near future, in the extent to which, or the manner in which, an asset is used or is expected to be used.

• Market interest rates or other market rates of return on investments have increased during the period, and those increases are likely to affect the discount rate used in calculating an asset’s value in use and decrease the asset’s recoverable amount materially.

Entity A, a government entity, had the following transactions during the period:

Received Notice of Cash Allocation (NCA) amounting to ₱1,226,618.

Earned total revenue of 1,598,000 from billings and collections of unbilled income.

Incurred total expenses of ₱791,652.

Remitted total taxes withheld of 87,460 to the BIR through Tax Remittance Advice (TRA).

The “Cash-Modified Disbursement System (MDS), Regular” has an unused balance of 132,196 at the₱ end of the period.

How much is the surplus (deficit) for the period?

• P1,988,230

• P1,898,230

• P1,742,320

• P1,988,320

Entity A grants a cash advance of 2,000 for the traveling expenses of an officer. Actual expenses amount to ₱1,800. The officer remits the excess cash advance.

The entry to record the grant of cash advance is

• Dr. Advances to Officers and Employees 2,000

  Cr. Cash – Disbursing Officer 2,000

• Dr. Advances to Officers and Employees 2,000

  Cr. Cash – Modified Disbursement System (MDS), Regular 2,000

• Dr Advances to Officers and Employees 2,000

  Cr. Cash – Collecting Officer 2,000

• Any of these.

Entity A grants a cash advance of 2,000 for the traveling expenses of an officer. Actual expenses amount to ₱1,800. The officer remits the excess cash advance.

The disbursement is recorded in the

• Journal and Ledger

• RAOD

• ORS

• All of these

Entity A grants a cash advance of 2,000 for the traveling expenses of an officer. Actual expenses amount to ₱1,800. The officer remits the excess cash advance.

The entry to record the liquidation of the cash advance is

• Dr. Traveling Expenses – Foreign 1,800

  Cr. Advances to Officers and Employees 1,800

• Dr. Traveling Expenses – Foreign 1,800

  Cr. Due to Officers and Employees 1,800

• Dr. Cash – Collecting Officers 1,800

  Cr. Advances to Officers and Employees 1,800

• 2 of the given choices are correct

Entity A grants a cash advance of 2,000 for the traveling expenses of an officer. Actual expenses amount to ₱1,800. The officer remits the excess cash advance.

The entry to record the receipt and deposit of refund of excess cash advance is

• Dr. Cash – Collecting Officers 200

  Cr. Advances to Officers and Employees 200

• Dr. Cash – Treasury/Agency Deposit, Regular 200

  Cr. Cash – Collecting Officers 200

• Both

• None

This refers to valid and legal obligations of NGAs/OUs, for which, goods/services/projects have been delivered/rendered/completed and accepted, regardless of the year when these obligations were incurred.

• Accounts Payable

• Obligations

• Not Yet Due and Demandable

• Liability