Government Accounting Midterm Exam Reviewer

Entity A, a government entity, had the following transactions during the period: Received Notice of Cash Allocation (NCA) amounting to ₱430,000. Earned total revenue of ₱40,000 from billings and collections of unbilled income. Incurred total expenses of ₱240,000. Remitted total taxes withheld of ₱37,000 to the BIR through Tax Remittance Advice (TRA). The “Cash-Modified Disbursement System (MDS), Regular” has an unused balance of ₱52,000 at the end of the period. How much is the surplus (deficit) for the period?

A government entity will report surplus in its statement of financial performance in which of the following instances?

The receipt of an inter-agency fund transfer is recorded as

The entry to close the “Cash-Treasury/Agency Deposit, Regular” account at the end of the period is

It refers to a fund which is available for any purpose other than those which other funds have been designated to

• General fund

• Major fund

• Regular fund

• All-purpose fund

After the budget call, budget hearings are made whereby agencies defend their proposed programs and expenditures for the upcoming year before the

• COA

• DBM

• Congress

• BTr

Which of the following statements is incorrect regarding the GAM for NGAs?

• The COA 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.

• The financial reporting system of the Philippine government consists of accounting system on accrual basis and budget reporting system on budget basis under the statutory responsibility of the NGAs, Bureau of the Treasury (BTr), Department of Budget and Management (DBM), and the COA.

• The objectives of general purpose financial statements (GPFSs) are to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making and evaluating decisions about the allocation of resources. Specifically, the objectives of general purpose financial reporting in the public sector are to provide information useful for decision-making, and to demonstrate the accountability of the entity for the resources entrusted to it.

• The DBM accounts for the cash, public debt and related transactions of the NG.

This refers to charges for the use of cash or cash equivalents, or amounts due to the entity.

• Financial expenses

• Personnel services

• Interest income

• Capital outlays

According to P.D. 1445, government entities shall acknowledge receipts of revenue

• through temporary receipts; provided a prior approval by COA is obtained.

• through the issuance of properly endorsed checks.

• through duplicate copies which shall not be the exact copies of the original.

• through pre-numbered official receipts.

This report, required of government entities, shows the names of creditors, the amounts owed to them, and the number of days these obligations are outstanding. This report is submitted to the COA and DBM within 30 days after the end of the year.

• List of Not Yet Due and Demandable Obligations

• Aging of Due and Demandable Obligations

• Percentage of Obligations Report

• Report on Allotments, Obligations and Disbursements