COA Circular 2022-004

1. What is the new capitalization threshold introduced by COA Circular 2022‑004?

• a. 15,000

• b. 5,000

• c. 50,000

• d. 25,000

2. 2. Tangible items meeting the PPE recognition criteria but costing below ₱50,000 should now be recorded as:

• a. Inventories

• b. Property, Plant and Equipment

• c. Expenses

• d. Semi-expendable Property

3. How should the implementation of the new threshold be applied?

• a. Prospectively for purchases after May 31, 2022 only

• b. Retrospectively to all acquisitions from CY 2022 and prior years

• c. Only for acquisitions above ₱50,000

• d. Only to LGUs and GCs

4. 4. Which document is used to record accountability of semi‑expendable property issued to end‑users?

• a. Property Acknowledgement Receipt

• b, Requisition and Issue Slip

• c. Inventory Custodian Slip

• d, Registry of Semi-expendable Property

5. 5. Which of the following is NOT a required action under the Circular?

• a. Ignore prior Property Cards and PARs for reclassified assets

• b, Adjust opening balances for retrospective policy change

• c. Maintain new forms, registries, and reports for semi‑expendables

• d. Apply new threshold on per‑item basis

6. 6. Which of the following is not a criteria for recognizing an item as PPE under the new COA guidelines?

• a. The acquisition cost is ₱50,000 or more

• b. Used in operations for more than one year

• c. Tangible in nature

• d. Intended for sale in the ordinary course of business

7. 7. According to COA Circular 2022-004, for an item to be classified as PPE, its acquisition cost must be:

• a. ₱15,000 or more

• b. 50,000 or more

• c. 75,000 or more

• d. 10,000 or more

8. 8. A laptop costing ₱30,000, expected to be used for 3 years, and essential to agency operations should be classified as:

• a. ICT Equipment

• b. Semi-expendable property

• c. Inventory

• d. Property, Plant and Equipment

9. 9. What is the minimum useful life required for an item to qualify as PPE?

• a. 1 year

• b. more than 3 years

• c. more than 1 year

• d. 5 years

10. 10. Which of the following is not considered a semi-expendable item under the circular?

• a. A ₱20,000 printer

• b. A ₱60,000 office table

• c. A ₱40,000 desktop computer

• d. A ₱16,000 steel cabinet