CH6-CH7 Flashcards
This comprises all funds derived from the income of any agency of the government and available for appropriation or expenditure in accordance with Law.
Revenue Funds
They determine the rules and regulations for recording and disbursing amounts received in trust and other business-type activities of the government.
Permanent Committee
These are economic benefits or service potentials compulsory paid or payable to public sector agencies, in accordance with laws and or regulations established to provide revenue to the government.
Tax Revenue
Pertains to transfer of cash from another agency to implement the project of another agency.
Inter-Agency Transfer of Fund
Consist of voluntary transfers of assets including cash or other monetary assets, goods in-kind, and services in-kind that one agency makes to another, normally free from stipulations.
Gifts and Donations
Are structured representation of the financial position and financial performance of an entity.
Financial Statements
Shall be prepared after recording the closing journal entries in the General Journal and posting these entries to the General Ledger.
Post-Closing Trial Balance
A transfer of cash from another agency to implement the project of another agency.
Inter-agency Transfer of Fund
Are adjusting entries for economic activities already undertaken but not yet recorded as asset and revenue accounts or a liability and expense accounts.
Accrued Items
The account to be used (debit) when the request for relief from accountability for shortages or loss of funds is granted.
Loss of Assets
The cash overage discovered by the Auditor that cannot be satisfactorily explained shall be forfeited in favor of the government. It shall be taken up as
Miscellaneous Income
These are adjustments which involve unearned revenue where the agency receives the asset, usually cash, even before the income is actually earned.
Deferred Items
Used to record the cumulative results of normal and continuous operations of an agency including prior period adjustments, effect of changes in accounting policy and other capital adjustments.
Accumulated Surplus / Deficit
Are 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
Is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets/equity, other than increases relating to contributions from owners.
Revenue
Give 6 examples of miscellaneous transactions of the government.
- Receipt of Subsidy/Assistance from other NGAs, LGUs, GOCCs, and Other Funds
- Performance bond/security deposits
- Refund of overpayment of expenses
- Collection made on behalf of another entity or non-government/private organizations
- Intra-agency Fund Transfer
- Inter-agency Fund Transfer
What are the two types of deferred adjusting journal entries under the new government accounting system?
- Asset/Expense Adjustments
- Liability/Revenue Adjustments
What are the 11 qualitative characteristics of financial reporting?
- Relevance
- Prudence
- Timeliness
- Understandability
- Reliability
- Materiality
- Neutrality
- Faithful representation
- Substance over form
- Completeness
- Comparability
Tax revenues are taxes levied on/to? (3)
- Tax Revenue - Individual and Corporation
- Tax Revenue - Property
- Tax Revenue - Goods and Services
What are the sources of revenues from exchange of transactions? (3)
- Sale of Goods
- Supply of Services
- Use by Others of Entity Assets
The Administrative Code of the National Government requires that all income accruing to the departments, officers and agencies, by virtue of the provisions of existing laws, orders and regulations shall be deposited in the National Treasury or in the duly authorized depository bank of the government. T or F?
TRUE
If goods in-kind are received without conditions attached to it, the receiving entity shall recognize a liability. T or F?
FALSE
Donations in cash or in kind shall be recognized as revenue. T or F?
TRUE
If pledges are received and such are transferred to the recipient entity, the entity shall recognize a gift or donation. T or F?
TRUE
The agency, upon the receipt of performance bond in the form of cash or certified check, shall credit Guaranty/Security Deposits Payable. T or F?
TRUE
When fines were collected by an entity acting as an agent, the fine will be recognized as revenue by the said entity. T or F?
FALSE
Loans and borrowings are not income but always classified and accounted for, as revenues. T or F?
FALSE
Statement of Financial Performance is a statement summarizing all the cash activities of an agency. T or F?
FALSE
The criteria of usefulness states that the usefulness of financial statements is impaired if they are not made available to users within a reasonable period after the reporting date. T or F?
FALSE
Errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud. T or F?
TRUE
Under the existing rules and regulations, all collections are deposited to the National Treasury, directly or through the bank. T or F?
TRUE
An entity shall present, either on the face of the Statement of Financial Performance or in the notes, an analysis of expense using a classification based on either the nature of expense or their function within the entity, whichever provides information that is reliable and more relevant. T or F?
TRUE
Accounting estimates are specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. T or F?
FALSE
The journal entry to record receipt of performance bonds in the form of surety bond includes a debit to other current asset. T or F?
FALSE
Fines include economic benefits or service potential received or receivable as a consequence of the breach of laws or regulations.
TRUE
