Book 4 Flashcards

1
Q

It is the exercise of economic, political and administrative authority to manage a country’s/local government affairs at all levels. It comprises mechanisms, processes, and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations, and mediate their differences.

 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming

A

Good Governance

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2
Q

It allows Local Treasurers to manage the cash such that it is available when it is needed for payment
of obligations and at the same time optimize its utilization, ensure that released allotments are
adequately covered by available cash and/or future collections, and provide information to facilitate
the control of expenditures.
a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming

A

e. Cash Management and Programming

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3
Q

It aids the Local Treasurer in cash management and programming such as Cash Flow Forecast and the Cash Flow Analysis.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming

A

Cash Programming Tools

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4
Q

It is a monthly schedule of anticipated receipts and disbursements of the local government unit for the fiscal year showing the beginning and ending cash balances of each month.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming

A

Cash Flow Forecast

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5
Q

It pertains to the receipts from, and disbursements of cash out of, the regular and primary operations of the local government unit such as from collection of taxes, share from IRA, payment to creditors and
employees, etc.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming

A

Cash Flow from Operating Activities

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6
Q

It includes receipt of cash from bank loans, proceeds from the floatation of bonds and receipts from other types of borrowings.

 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast

A

c. Cash Flow from Financing Activities

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7
Q

It pertains to receipts from the sale, acquisition or purchase of long term investments such as real estate, machinery and other Plant, Property and Equipment.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast

A

a. Cash Flow from Investing Activities

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8
Q

It is a schedule of all income collections and other receipts to be prepared by all collecting units. All
receipts shall also be classified into operating, financing and investing activities.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast

A

e. Cash Receipts Forecast

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9
Q

It is a schedule of all expenditures to be prepared by the local treasury personnel in charge of
expenditures and disbursements.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast

A

b. Cash Disbursement Forecast

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10
Q

It is a cash flow monitoring tool used to guide the Local Chief Executive, the Local Treasurer, and the
Local Budget Officer to control the releases of allotment depending on the collection/expenditure
performance during the period.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast

A

d. Cash Flow Analysis

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11
Q

It is the ratio of the Present Value of Annual Cash Returns discounted at the lowest acceptable rate
to the Present Value of the Initial Investment Cost.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow

A

a. Present Value Index

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12
Q

It is the amount of cash a project is expected to generate annually, and equal to the cash inflows
from projected sales and or service fees minus the estimated cash outflows for operational expenses.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow

A

e. Annual Cash Inflow

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13
Q

It refers to the expected increase in its peso value considering the prevailing interest rates, the
passage of time, and opportunity cost of capital and similar factors.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow

A

b. Time value of money

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14
Q

It is the rate at which an investment is earning, and equates the present value of cash returns with
the present value of the initial investment.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow

A

d. Discounted Rate of Return

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15
Q

It represents the excess of the present value of annual cash returns (discounted at the lowest
acceptable rate) over the present value of the initial capital investment.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow

A

c. Net Present Value

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16
Q

It refers to the estimated useful life of an asset or that length of period during which economic
benefits can be derived therefrom.
 a. Cost of money
 b. Economic life
 c. Scrap value
 d. Payback Period
 e. None of the above

A

b. Economic life

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17
Q

It refers to the length of time or number of years it will take to recover the initial outlay for a project.
 a. Cost of money
 b. Economic life
 c. Scrap value
 d. Payback Period
 e. None of the above

A

d. Payback Period

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18
Q

The LGU should consider long-term financing for the acquisition, maintenance and replacement or
expansion of physical assets (including land) only if the economic enterprise would be expected to
generate revenue in the near term or if these assets have a useful life of at least:
 a. 1 year
 b. 3 years
 c. 5 years
 d. 10 years
 e. None of the above

A

c. 5 years

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19
Q

Cash Programming Tools such as Cash Flow Forecast and Cash Flow Analysis can provide the
following information except:
 a. Effectiveness of the Local Chief Executive
 b. Excess in the collection of taxes and other revenues
 c. Under-collection of taxes and other revenues
 d. Under-disbursement or excess in the disbursement
 e. Large amount of idle cash that may be invested

A

a. Effectiveness of the Local Chief Executive

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20
Q

When funding competing capital projects, the viability and approvability of the project and its
funding from long-term debt should be assessed based on the following factors except:
 a. Approval from the Local Chief Executive
 b. Nature of the project and uses of funds
 c. Cost-benefit analysis of the project
 d. Expenditure plan and sources of debt financing
 e. None of the above

A

a. Approval from the Local Chief Executive

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21
Q

It refers to the answerability of every public officer whose duties permit or require the possession or
custody of government funds or property and who shall be accountable therefor and for the
safekeeping thereof in conformity with law.
 a. Liability
 b. Public Service
 c. Accountability
 d. Honesty
 e. Responsibility

A

c. Accountability

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22
Q

The obligation to prudently exercise assigned or imputed authority attaching to the assigned or
imputed role of an individual or group participating in organizational activities or decision.
 a. Liability
 b. Public Service
 c. Accountability
 d. Honesty
 e. Responsibility

A

e. Responsibility

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23
Q

The officer of any government agency whose duties permit or require the possession or custody of
government funds or property, (such as the Local Treasurer, Collecting Officer, Disbursing Officer,
Cashier, Paymaster, and Property Officer) who is required by law to render account to the Commission
on Audit.
 a. Persons Responsible
 b. Accountable Officer
 c. Local Treasurer
 d. Persons Liable
 e. None of the above

A

b. Accountable Officer

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24
Q

The persons determined by the auditor to be answerable for an audit disallowance or charge arising from the post-audit of transaction or examination of the cash and accounts of an accountable officer.
 a. Persons Responsible
 b. Accountable Officer
 c. Local Treasurer
 d. Persons Liable
 e. None of the above

A

d. Persons Liable

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25
Q

The persons determined by the auditor to be answerable for compliance with the audit requirements
as called for in the notice of suspension.
 a. Persons Responsible
 b. Accountable Officer
 c. Local Treasurer
 d. Persons Liable
 e. None of the above

A

a. Persons Responsible

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26
Q

A written notification by the Auditor to the agency head and the accountable officer concerned of
the total suspensions, disallowances and charges found in audit, as well as the settlements thereof.
 a. Disallowance
 b. Settlement
 c. Certificate of Settlement and Balances
 d. Termination
 e. Suspension

A

c. Certificate of Settlement and Balances

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27
Q

The process of determining the status or balance of the accountability of an accountable officer.
 a. Disallowance
 b. Settlement
 c. Certificate of Settlement and Balances
 d. Termination
 e. Suspension

A

b. Settlement

28
Q

The deferment of action to allow or disallow in audit a transaction pending compliance with certain
requirements.
 a. Disallowance
 b. Settlement
 c. Certificate of Settlement and Balances
 d. Termination
 e. Suspension

A

e. Suspension

29
Q

The disapproval in audit of a transaction, either in whole or in part.
 a. Disallowance
 b. Settlement
 c. Certificate of Settlement and Balances
 d. Termination
 e. Suspension

A

a. Disallowance

30
Q

These are items of property, plant and equipment and are referred to as such because of their
permanent nature and because they are not subject to rapid turnover.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets

A

c. Fixed Assets

31
Q

The following are examples of fixed assets except:
 a. Equipment
 b. Furniture and fixtures
 c. Land
 d. Office Supplies
 e. Building

A

d. Office Supplies

32
Q

A personal obligation arising from an audit disallowance or charge in the course of post audit of a
transaction or examination of the cash and accounts of an accountable officer.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets

A

b. Liability

33
Q

Cash and other assets that are not earmarked for specific purposes other than the payment of a
current liability or a readily marketable investment.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets

A

e. Current Assets

34
Q

A holding that can be converted into cash within a short period of time.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets

A

a. Quick Assets

35
Q

It is the process of elevating to the next higher authority a decision, order, or ruling.
 a. Settlement
 b. Appeal
 c. Reconsideration
 d. Complaint
 e. None of the above

A

b. Appeal

36
Q

When a Local Treasurer or officer accountable for government funds or property absconds with them,
dies, or becomes incapacitated in the performance of his duties, in the case of funds and property of
the province, city and municipality, the designation of a custodian to take charge of the funds or
property until a successor shall have been appointed and qualified shall be made by:
 a. President of the Philippines
 b. Local Chief Executive
 c. Governor
 d. Secretary of Finance
 e. COA Director

A

d. Secretary of Finance

37
Q

When a loss of government funds or property occurs while they are in transit or the loss is caused by
fire, theft, or other casualty or force majeure, the officer accountable therefor or having custody thereof
shall immediately notify the Commission on Audit or auditor concerned and, unless the auditor allows
a longer period, shall present his application for relief with the available supporting evidence within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
 e. None of the above

A

a. 30 days

38
Q

The sealing of safe and other cash receptacles shall be resorted to by the examining officer only in
the following exceptional cases except:
 a. The absence or non-appearance of the accountable officer for the count.
 b. When the accountable officer refuses to submit himself to cash examination.
 c. An interruption or the non-completion of the count during the day or the necessity of
controlling cash, cash items and records.
 d. In cases of deceased, incapacitated or absconding accountable officer pending the cash count
to be conducted by a committee created to make an inventory of his cash, cash items and other
accountabilities.
 e. When prima facie evidence of missing funds has been established.

A

e. When prima facie evidence of missing funds has been established.

39
Q

The following shall be disallowed as credit to accountable officer’s accountability except:
 a. Post-dated Checks and Treasury Warrants
 b. Chits, IOUs, Vales or other forms of Promissory Notes
 c. Cash and cash items
 d. Demonetized Bills and Coins and Unacceptable Mutilated Bills
 e. Private Checks not made payable to the agency or the official title or designation of the agency
head

A

c. Cash and cash items

40
Q

After the cash examination is completed, the auditor shall prepare and submit a final narrative report
which shall contain:
 a. Introduction
 b. Findings
 c. Recommendations
 d. All of the above
 e. None of the above

A

d. All of the above

41
Q

A person who, by direct provision of the law, popular election or appointment by competent
authority, shall take part in the performance of public functions in the government, or shall perform in
said government or in any of its branches public duties as an employee, agent, or subordinate official,
of any rank or class.
 a. Public officer
 b. Accountable officer
 c. Auditor
 d. Local Treasurer
 e. Examining officer

A

a. Public officer

42
Q

Auditors of all government agencies shall certify the balances arising in the accounts settled by them
to the Commission on Audit and to the proper Local Treasurer, Collecting Officer, or Disbursing Officer,
in such form as the Commission on Audit may prescribe, within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
 e. None of the above

A

c. 60 days

43
Q

Unless extended in writing and for good cause, a charge of suspension by the accountable officer
shall become a disallowance if after receipt of the certificate or notice it is not satisfactorily explained
within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
 e. None of the above

A

d. 90 days

44
Q

It summarizes all suspensions, disallowances and charges found in audit, including the settlements
thereof as of a given date.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice

A

b. Certificate of Settlement and Balances

45
Q

It shall be issued as often as suspensions are made by the auditor for the purpose of notifying the
agency head and the accountable officer concerned on the suspended transactions.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Credit Notice
 e. Audit Observation Memorandum

A

a. Notice of Suspensions

46
Q

It shall be used and issued as often as disallowance are made by the auditor in order to notify the
agency head, the accountable officers concerned, and the other persons liable for the disallowed
transaction.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice

A

c. Notice of Disallowance

47
Q

It is issued by the auditor to the accountable officer within 30 days from receipt of the report of
disbursements for liquidation of cash advances, to inform the latter of the amount allowed in audit and
any suspensions and/or disallowance made.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice

A

e. Credit Notice

48
Q

It shall be used and issued as often as charges are made by the auditor to notify the agency head,
accountable officer concerned and other persons liable for the deficiencies noted in the audit of
revenues and receipts.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice

A

d. Notice of Charge

49
Q

The Certificate of Settlement and Balances shall be issued for every accountable officer and for each
fund within:
 a. 10 days after the end of each quarter
 b. 30 days after the end of each quarter
 c. 60 days after the end of each quarter
 d. 90 days after the end of each quarter
 e. None of the above

A

a. 10 days after the end of each quarter

50
Q

It shall be issued to the agency head and/or other officials concerned relative to the
findings/observations/other deficiencies noted in the audit of accounts/transactions and requiring
comment/reply thereto within the period specified therein.
 a. Notice of Disallowance
 b. Audit Observation Memorandum
 c. Credit Notice
 d. Auditor’s Order
 e. None of the above

A

b. Audit Observation Memorandum

51
Q

It shall be used by the auditor to enforce the settlement of audit disallowances and charges,
whenever the persons liable therefor refuse or fail to voluntarily settle the disallowances and charges
after the decision has become final and executory.
 a. Notice of Disallowance
 b. Audit Observation Memorandum
 c. Credit Notice
 d. Auditor’s Order
 e. None of the above

A

d. Auditor’s Order

52
Q

All transactions which are irregular, unnecessary, excessive and extravagant and those which are
illegal and unconscionable. These are:
 a. Grounds for Disallowance
 b. Grounds for Charges
 c. Grounds for Suspension
 d. Grounds for Termination
 e. None of the above

A

a. Grounds for Disallowance

53
Q

Transactions or accounts which could otherwise have been settled for some documentary or technical
requirements and those the legality/propriety/regularity of which the auditor doubts, but which may
possibly be allowed in audit after satisfactory explanation or valid justification by the parties concerned.
These are:
 a. Grounds for Disallowance
 b. Grounds for Charges
 c. Grounds for Suspension
 d. Grounds for Termination
 e. None of the above

A

c. Grounds for Suspension

54
Q

When there is error in the assessment which resulted in under collection, and error in the
computation of the amount due the payor which may either be over collection or under collection.
These are:
 a. Grounds for Disallowance
 b. Grounds for Charges
 c. Grounds for Suspension
 d. Grounds for Termination
 e. None of the above

A

b. Grounds for Charges

55
Q

The liability of public officers and other persons for audit disallowances shall be determined on the
basis of the following except:
 a. Nature of the Disallowance
 b. Duties, responsibilities or obligations of the officers/persons concerned
 c. Extent of their participation or involvement in the disallowed transaction
 d. Amount of losses or damages suffered by the government thereby
 e. Financial capacity of the accountable officer

A

e. Financial capacity of the accountable officer

56
Q

Unless a request for reconsideration is filed or an appeal is taken, the Report, Certificate of
Settlement and Balances, Order or Decision of the auditor shall become final after notice thereof to the
parties concerned upon the expiration of:
 a. 1 month
 b. 3 months
 c. 6 months
 d. 12 months
 e. None of the above

A

c. 6 months

57
Q

Under R. A. No. 7160, failure to post and publish the itemized monthly collections and disbursements
of the LGU within the prescribed period shall be punished by:
 a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
 e. Automatic dismissal from the service after due notice and hearing

A

a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both

58
Q

Under the Revised Penal Code, frauds against the public treasury and similar offenses by a public
officer, such as (1) Demanding, directly or indirectly, the payment of sums different from or larger than
those authorized by law, (2) Failing voluntarily to issue a receipt, as provided by law, for any sum of
money collected by him officially, (3) Collecting or receiving, directly or indirectly, by way of payment
or otherwise, things or objects of nature different from that provided by law, shall be punished by:
 a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
 e. Automatic dismissal from the service after due notice and hearing

A

c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum
period or both

59
Q

Under R. A. No. 7160 and without prejudice to criminal prosecution under the Revised Penal Code
and other applicable laws, any Local Treasurer who fails to issue or execute the warrant of distraint or
levy after the expiration of the time prescribed, or who is found guilty of abusing the exercise thereof
by competent authority shall be punished by:
 a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
 e. Automatic dismissal from the service after due notice and hearing

A

e. Automatic dismissal from the service after due notice and hearing

60
Q

Under R. A. No. 7160, the enforcement of any tax ordinance or revenue measure after due notice of
the disapproval or suspension thereof shall be:
 a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
 e. Automatic dismissal from the service after due notice and hearing

A

d. Sufficient ground for administrative disciplinary action against the officials and employees
involved

61
Q

Under R. A. No. 7160, failure to collect tax due on real property by any officer or to dispose of
delinquent real property at public auction by the Local Treasurer shall be punished by:
 a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
 e. Automatic dismissal from the service after due notice and hearing

A

b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both

62
Q

Any public officer who is guilty of the misappropriation or malversation of funds or property shall
suffer the penalty of reclusion temporal in its minimum and medium periods, if the amount involved is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00
 e. None of the above

A

d. Php 12,000.00 – Php 22,000.00

63
Q

Any public officer who is guilty of the misappropriation or malversation of funds or property shall
suffer the penalty of prision correccional in its minimum and medium periods, if the amount involved
is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00
 e. None of the above

A

a. Php 200.00 – Php 2,000.00

64
Q

Any public officer who is guilty of the misappropriation or malversation of funds or property shall
suffer the penalty of prision mayor in its maximum period to reclusion temporal in its minimum period,
if the amount involved is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00
 e. None of the above

A

c. Php 6,000.00 – Php 12,000.00

65
Q

Any public officer who is guilty of the misappropriation or malversation of funds or property shall
suffer the penalty of prision mayor in its maximum and medium periods, if the amount involved is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00
 e. None of the above

A

b. Php 2,000.00 – Php 6,000.00