WorksheetsGovernment Accounting Midterm Exam Reviewer
Total questions: 33
Worksheet time: 27mins
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
It is the expenditure authority derived from appropriation laws, government ordinances, and other decisions related to the anticipated revenue or receipts for the budgetary period.
Notice of Cash Allocation
Allotment
Approved Budget
General Appropriations Bill
A government entity recognizes revenue from exchange or non-exchange transactions. In which of the following transactions does a government entity need not recognize revenue?
Exchange of goods or services of dissimilar nature and value.
Receipt of an unconditional grant from a foreign government.
Receipt of equipment as donation from a good-hearted, private individual.
Receipt of a pledge.
Under this approach to budgeting, several parties participate in the budget preparation, starting from the lowest levels of the government up to the highest levels.
Bottoms-up budgeting
Zero-based budgeting
Incremental budgeting
Bottom-up budgeting
These refer to transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange.
Exchange transactions
Non-exchange transactions
Non-reciprocal transactions
External events other than transfers
After the incurrence of obligations, the next step in the budget cycle is
Allotment
Disbursement
Appropriation
Disbursement authority
No journal entry is made for a disbursement under this mode of disbursement.
LDDAP-ADA
CPC
eMDS
None of these
The entry to record the granting of cash advance for payroll fund is
Due to Pag-IBIG
Due to GSIS
Salaries and Wages, Regular
Due to BIR
Personal Economic Relief Allowance (PERA)
The President’s explanation of the country’s fiscal policy and budget priorities is contained in a document called the
National Expenditure Program
President’s Budget Message
President’s Fiscal Policy and Priorities
Budget of Expenditures and Sources of Financing
A government entity records a transaction by debiting an account with a Revised Chart of Account (RCA) Code that starts with “1” and crediting an account with an RCA Code that starts with “4.” This transaction is most likely a
constructive remittance of taxes withheld to the BIR through TRA.
remittance of collection to the National Treasury.
payment of accounts payable.
receipt of inter-agency fund transfer.
Which of the following government agencies will most likely be able to obtain a disbursement authority in the form of Cash Disbursement Ceiling (CDC)?
DA
NIA
DOLE
DENR
Which of the following modes of disbursements would result to the recognition of a loan payable in books of the BTr?
NCAA
CDC
ADA
AWAN
Under responsibility accounting, a cost is considered controllable at a given level of managerial responsibility if
the manager has the power to incur it within a given period of time.
the cost is non-recurring, can be measured with sufficient reliability and is not immaterial
the cost is a fixed cost, such that its incurrence is reasonably certain.
all of these.
Under this type of disbursement authority, disbursements are made out of the entity’s own bank account rather than through the Treasury Single Account.
Disbursement through Advice to Debit Account (ADA)
Disbursement through Cash Disbursement Ceiling (CDC)
Disbursement through electronic Modified Disbursement System (eMDS)
Disbursement through Non-Cash Availment Authority (NCAA)
Which of the following is one of the Fundamental Principles for Revenue under the GAM for NGAs?
No payment of any nature shall be received by a collecting officer without immediately issuing an official receipt in acknowledgement thereof. The receipt may be in the form of postage, internal revenue or documentary stamps and the like, officially numbered receipts, subject to proper custody, accountability, and audit.
Temporary receipts may be issued to acknowledge the receipt of public funds; provided that, an official receipt is issued within a short period of time as may be prescribed by the COA.
Money in the hands of the Collecting Officer may be utilized for the purpose of cashing private checks, upon proper endorsement and identification of the payee or endorsee. Checks drawn in favor of the government in payment of any such indebtedness shall likewise be accepted by the officer concerned.
All of these
The best estimate for a loss is ₱100,000. However, the entity deliberately overstated the loss to ₱120,000. Which of the following qualitative characteristics is violated?
Prudence
Reliability
a and b
Nothing is violated
A government entity remitting collections to the BTr will debit this account to record the remittance.
Cash-Treasury/Agency Deposit, Regular
Cash – Collecting Officers
Cash-Modified Disbursement System (MDS), Regular
Subsidy from National Government
What is the legal basis of the COA in promulgating the GAM for NGAs?
Revised Penal Code, Art. 217
State Audit Code of the Philippines, P.D. No. 1445, Sec. 109
Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines
R.A. 9298
The GAM for NGAs aims to update all of the following except
standards, policies, guidelines and procedures in accounting for government funds and property
coding structure and accounts
accounting books, registries, records, forms, reports and financial statements
rules and regulations regarding the filing and payment of taxes by government employees
Entity A, a government entity, bills ₱200,000 for Communications Network Fees. Which of the following is the correct entry for the billing?
Cash-Collecting Officers Communications Network Fees 200,000 200,000
Cash-Modified Disbursement System (MDS), Regular Communications Network Fees 200,000 200,000
Accounts receivable Subsidy from National Government 200,000 200,000
Accounts receivable Communications Network Fees 200,000 200,000
Arrange the following accounts in the sequence they appear in the trial balance. I. Permit Fees II. Allowance for Impairment-Accounts Receivable III. Due to BIR IV. Salaries and Wages-Regular V. Advances for Payroll
II, V, III, I and IV
II, III, V, I and IV
V, II, III, I and IV
II, V, I, III and IV
Which of the following transactions is not recorded through a credit to the “Cash-Modified Disbursement System (MDS), Regular” account?
Reversion of unused NCA at the end of the period.
Payment of accounts payable wherein the tax portion is withheld.
Granting of cash advance for payroll.
Constructive remittance of taxes withheld to the BIR.
Which of the following is not one of the Fundamental Principles for Disbursement of Public Funds under the GAM for NGAs?
No money shall be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority.
Government funds or property shall be spent or used solely for public purposes.
Trust funds shall be available and may be spent only for the specific purpose for which the trust was created or the funds received.
Fiscal responsibility shall, to the greatest extent, be assumed solely by the Head of the government agency.
Which of the following statements best differentiates the government accounting process from the accounting process of a business entity?
The government accounting process involves numerous complicated steps or procedures that are beyond the understanding of a mere JPIA member, but not for a CPA.
The government accounting process involves procedures that are not generally acceptable for business entities.
The government accounting process is similar to that of a business entity, except that it incorporates budgetary controls, such as recording in the budget registries and preparing periodic budget accountability reports.
Unlike for the accounting process of business entities which ends in the preparation of general purpose financial statements, the government accounting process ends with the audit by the COA.
