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WorksheetsAccounting for Government and Non-Profit Org
Total questions: 28
Worksheet time: 14mins
Name
Class
Date
1.
Which of the following is not one of the modes of disbursements by a government entity?
a)
check
b)
credit card
c)
online payment
d)
payment through Short Messaging System (SMS)
2.
Payments of checks that are chargeable against the Treasury Account are credited to the
a)
Modified Disbursement System Checks
b)
Commercial Checks
c)
Advice to Debit Account
d)
Cash-Modified Disbursement System (MDS) account
3.
According to the GAM for NGAs, cash disbursements are made through
a)
cash advances to authorized personnel
b)
direct cash payments by the Head of Agency to the payees
c)
direct cash payment by Collecting Officers to payees
d)
any of these
4.
It is an authority issued by an agency’s Central Office to its regional and operating units to cover the latter’s cash requirements.
a)
Notice of Cash Allocation (NCA)
b)
Tax Remittance Advice (TRA)
c)
Cash Disbursement Ceiling (CDC)
d)
Notice of Transfer of Allocation (NTA)
5.
Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of disbursement?
a)
Dr Accounts Payable, Cr Cash-Constructive Income, Cr Remittance
b)
Dr Accounts Payable, Cr. Cash-MDS (Regular)
c)
Dr Accounts Payable, Cr Subsidy from National Government
d)
None of these.
6.
The entry to record a disbursement from the petty cash fund is
a)
Dr Expense Accounts, Cr Cash-MDS (Regular)
b)
Dr Expense Accounts, Cr Petty Cash
c)
Dr Expense Accounts, Cr Cash Collecting Officers
d)
Dr Expense Accounts, Cash-Treasury/Agency Deposit, Regular
e)
None of these.
7.
According to the GAM for NGAs, government entities shall prepare bank reconciliations
a)
on a daily basis
b)
on a monthly basis
c)
only at year-end
d)
only as needed
8.
Which of the following statements is incorrect regarding the accounting for unreleased checks by a government entity?
a)
Unreleased checks are reverted back to cash.
b)
Unreleased checks are physically cancelled.
c)
The accounting procedures for unreleased checks prescribed under the GAM for NGAs apply only to commercial checks.
d)
At the start of the year, a reversing entry is made for the unreleased checks in the previous year.
9.
All of the following may cause the cancellation of a check drawn by a government entity except
a)
The check becomes stale.
b)
Wrong spelling or unnecessary markings on the check.
c)
The check is dishonored.
d)
The check is prepared using a pen with red ink.
10.
It is a hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such an asset, liability or firm commitment, that is attributable to a particular risk and could affect surplus or deficit.
a)
Fair value hedge
b)
Hedge of a recognized asset or liability
c)
Cash flow hedge
d)
Hedge of a net investment in a foreign operation
11.
Which of the following is subsequently measured at the lower of cost and current replacement cost?
a)
Inventories held for sale
b)
Inventories held for distribution
c)
Inventories that are undergoing manufacturing process for completion as finished goods for sale.
d)
None of these.
12.
The supply or property office of a government entity uses this to record and monitor the movements and balances of inventories.
a)
Stock Card
b)
Inventory Listing
c)
Stock Ledger Card
d)
Registry of Inventory
13.
Entity A, a government entity and a manufacturer of military equipment, had inventories at the beginning and end of its current year as follows <br />Beginning/End <br />Raw materials 11,000/ 15,000<br />Work in process 20,000/ 24,000 <br />Finished goods 12,500/ 9,000<br /><br />During the year, the following costs and expenses were incurred:<br />Raw materials purchased 150,000 <br />Direct labor cost 60,000 <br />Indirect factory labor 30,000 <br />Taxes and depreciation on factory building 10,000<br />Taxes and depreciation on sales room and office 7,500 <br />Sales salaries 20,000 <br />Office salaries 12,000 <br />Utilities (60% applicable to factory, 20% to sales room, and 20% to office) 25,000<br /><br />Entity A's cost of sales for the year is
a)
257000
b)
260500
c)
261000
d)
269500
14.
Which of the following is considered a biological asset?
a)
Carcass
b)
Ham
c)
Pig
d)
Piggy bank
15.
Which of the following is considered an agricultural produce?
a)
eggs to be hatched into chicks
b)
condensed milk
c)
dairy cow
d)
felled trees
16.
Which of the following is considered an inventory rather than agricultural produce at the point of harvest?
a)
Harvested cotton
b)
Harvested cane
c)
Tea
d)
Picked leaves
17.
Which of the following is considered an agricultural activity under PAS 41?
a)
fishing in the open seas
b)
illegal logging
c)
floriculture
d)
farming in the computer or cellphone
18.
Which of the following is considered a bearer plant?
a)
Palm oil
b)
Corn oil
c)
Baby oil
d)
Oil palm
19.
Which of the following qualifies for classification as an investment property?
a)
Property that is currently being developed for future use as investment property
b)
Investment property that is currently being developed for future use as owner-occupied property
c)
Property that is leased out to another entity under a finance lease
d)
Building being rented from another entity under an operating lease and leased out under various operating leases.
20.
Select the correct statement.
a)
A leasing company should treat all assets used in providing lease services as investment property.
b)
Investment properties that are to be disposed of without further development are treated as investment property until they are derecognized.
c)
All investment properties held for capital appreciation will be classified as held for sale in the long run.
d)
Investment properties being redeveloped as investment properties on behalf of third parties are investment properties.
21.
Select the incorrect statement regarding impairments of investment properties.
a)
Investment properties are subject to impairment.
b)
Impairments of investment properties of government entities are recognized in surplus or deficit.
c)
Compensation from third parties for investment property that was impaired or lost shall be recognized in surplus or deficit when the compensation becomes receivable and not offset with the amount of loss.
d)
Impairment losses on investment properties measured under the cost model are never reversed.
22.
Derecognition of investment property is not required when
a)
it becomes the subject of an operating lease.
b)
it is sold.
c)
the property is assessed to have no future economic benefits.
d)
it becomes the subject of a finance lease.
23.
Which of the following assets may be classified as investment property?
a)
Land held for long-term capital appreciation
b)
Equipment held for lease
c)
Intangible asset held for lease
d)
Building held for lease
e)
a and d only
24.
Which of the following properties falls under the definition of investment property? <br />I. Land held for long-term capital appreciation <br />II. Property occupied by an employee paying market rent<br />III. Property being constructed on behalf of third parties<br />IV. A building owned by an entity and leased out under an operating lease
a)
I,II
b)
II, IV
c)
I,IV
d)
II, III, IV
25.
Which of the following measurement bases is acceptable for the subsequent measurement of an investment property held by a government entity?
a)
fair value
b)
fair value less costs to sell
c)
cost less accumulated impairment losses
d)
none, all of these are unacceptable.
26.
The distinguishing characteristic that identifies an investment property from the other assets of an entity is?
a)
Changes in fair value of the asset is recognized in surplus or deficit.
b)
The property does not derive cash flows separate from the other assets of the entity.
c)
Generates separately identifiable cash flows from the other assets of the entity.
d)
Earns rental as part of the ordinary operations of the entity.
27.
Which of the following statements is correct regarding investment property?
a)
An entity may classify assets other than land and/or building as investment property.
b)
During the period, Entity A, a government entity, reclassifies a building that was previously used as office space to investment property. Entity A will recognize a gain if the fair value of the asset exceeds its carrying amount on the date of transfer.
c)
When a government entity applies the fair value model to account for its investment properties subsequent to initial recognition, changes in fair values are recognized in surplus or deficit rather than a direct adjustment to equity.
d)
Transfers to or from investment property shall be made when, and only when, there is a change in use.
28.
Under this model, investment properties are measured at cost less accumulated depreciation and accumulated impairment losses.
a)
Impairment loss model
b)
Cost model
c)
Fair value model
d)
Gorgeous model
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