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Chapter 5 Flashcards

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1
Q

When do Disbursement begin?

A

The disbursement activities of the NGAs start from the receipt of Notice of Cash Allocation from the DBM.

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2
Q

It constitutes of all cash paid out during a given period either in cash or by check.

A

Disbursements

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3
Q

It involves the preparation and processing of disbursement voucher, preparation and issuance of check; payment by cash; granting, utilization, and liquidation/replenishment of cash advances.

A

Disbursement System

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4
Q

What are the Basic requirements and Certifications for Disbursement of Public Funds?

A

1.Availability of allotment/budget for obligation/utilization
* Budget Officer / Head of Budget Unit
2. Obligations/Utilizations properly charged against available allotment/budget
* Chief Accountant / Head of Accounting Unit
3. Availability of funds and cash and completeness of supporting documents
* Chief Accountant
4. Legality of the transactions and conformity with rules and regulations
* Head of requesting unit
5. Submission of proper evidence to establish validity of the claim
6. Approval of the disbursement
* Head of Agency or by his duly authorized representative

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5
Q

What are the Documents that authorize the Entity to pay obligations and Payables?

A
  1. Notice of Cash Allocation
  2. Non-Cash Availment Authority
  3. Cash Disbursement Ceiling
  4. Notice of Transfer of Allocation
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6
Q

It specifies the maximum amount of withdrawal that an entity can make from a government bank for the period indicated.
It shall be monitored through the maintenance of the RANCA by the Accounting Division/Unit.
The total disbursements shall not exceed total NCA received.

A

Notice of Cash Allocation (NCA)

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7
Q

It shall be the authority of the regional and operating units to pay their operating units to cover the latter’s cash requirements.
It specifies the maximum amount of withdrawal that an entity can make from a government bank for the period indicated.
no MDS check/ADA shall be issued by the RO/OU
without the covering NTA
* total MDS checks / ADA issued shall not exceed the total NTA received
* monitored through RANTA

A

Notice of Transfer of Allocation (NTA)

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8
Q

The authority issued by DBM to agencies to cover the liquidation of their actual obligations incurred against available allotments for availment of proceeds from loans/grants through supplier’s credit/constructive cash

A

Non-Cash Availment Authority (NCAA)

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9
Q
  • authority issued by DBM to to the Department of Foreign Affairs (DFA) and Department of Labor and Employment (DOLE)
  • to utilize their income collected / retained by their Foreign Service Post (FSP) to cover their operating requirements
  • total disbursements not to exceed the released allotment
A

Cash Disbursement Ceiling (CDC)

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10
Q

What are the modes of Disbursements?

A

a. Disbursements by Check
b. Disbursements by Cash
c. Disbursements through Advice to Debit Account (ADA)
d. Disbursements through electronic Modified Disbursement System (eMDS)
e. Disbursements through Cashless Purchase Card System (CPCS)
f. Disbursements through Non-Cash Availment Authority (NCAA)
g. Disbursements through Tax Remittance Advice (TRA)
h. Disbursements by CDC

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11
Q
  • Shall be drawn only on duly approved Disbursement Voucher (DV) or Payroll
  • Used for payment of regular expenses that cannot be paid using ADA, PCF, or CA
  • 2 types of Checks issued by the Government
    o MDS
    o Commercial Checks
A

Disbursements through Check

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12
Q

These are checks issued by government agencies chargeable against the account of the Treasurer of the Philippines, which are maintained with different MDS-GSBs.

A

Modified Disbursement System Checks

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13
Q

These are checks issued by NGAs chargeable against the Agency Checking Account with government Servicing Banks (GSBs). These shall be covered by income/receipts authorized to be deposited with Authorized Government Depository Banks (AGDBs).

A

Commercial checks

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14
Q

Constitutes payments out of cash advances granted to the regular and special disbursing officers for personal services, petty expenses and MOOE for field operating requirements.

A

Disbursements through Cash

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15
Q

o granted to Regular Disbursing Officers
o for payment of salaries, wages, honoraria, allowances and other personal benefits of officials and employees
o equal to the net amount of the processed payroll corresponding to the pay period
o Disbursing Officer
§ maintains the Cash Disbursement Record
§ prepares the Report of Cash Disbursements

A

Advances for Payroll

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16
Q

accountable form used as an authorization issued by a government agency to the MDS-GSB instructing the bank to debit a specified amount from its available NCA to pay the creditors/payees listed in the LDDAPADA

A

Disbursements through Advice to Debit Account (ADA)

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17
Q
  • disbursements made directly from the accounts of the BTr maintained with LBP
  • agencies subscribed can make online disbursements for selected transactions
A

Disbursements through electronic Modified Disbursement System (eMDS)

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18
Q

disbursements made through the use of an electronic card

A

Disbursements through Cashless Purchase Card System (CPCS)

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19
Q

It consists of machinery, equipment, furniture and fixtures and similar items that are not capitalized as PPE because their costs are below the ₱50,000 capitalization threshold for PPE

A

Semi-Expendable Property

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20
Q

Inventories are initially measured at

A

Cost

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21
Q

Inventories are subsequently measured at the:

A

lower of cost and NRV (for goods held for sale)
Lower of cost and current replacement cost (for goods held for distribution)

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22
Q

Inventories’ cost acquired through a non-exchange transaction shall be measured as their ______

A

fair value as the date of acquisition

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23
Q

It refers to the amount an entity expects to realize from the sale of inventory in the ordinary course of business; estimated selling price less the estimated cost to complete and to sell.

A

Net Realizable Value

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24
Q

The amount for which the same inventory could be exchanged between knowledgeable and willing parties in an arm’s length transaction

A

Fair Value

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25
Q

The cost the entity would incur to acquire the inventory on the reporting date.

A

Current Replacement Cost

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26
Q

Cost is determined on:

A

*weighted average
*specific identification method

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27
Q

it is used in assigning cost to inventories for interchangeable items

A

Weighted Average

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28
Q

It is used in assigning cost to inventories that are not ordinarily interchangeable.

A

Specific identification method

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29
Q

Purchase of supplies and materials for stock, regardless of whether or not they are consumed within the accounting period –recorded as

A

Inventory account under the Perpetual Inventory Method

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30
Q

These are tangible items below the capitalization threshold of P50,000 recognized as EXPENSES upon issue to the end-users

A

Semi-Expendable Property

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31
Q

Cost is comprised of:

A

o Purchase cost, excluding trade discounts
o Direct costs incurred in bringing the asset to its intended location and condition

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32
Q

When inventories are sold, exchanged, consumed or distributed, the carrying amount of those inventories shall be recognized as an _________ in the period in which the related revenue is recognized.

A

Expense

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33
Q

Write-downs to net realizable value are recognized as an _______

A

Expense

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34
Q

Reversals arising from an increase in net realizable value are recognized as _________

A

reduction of the inventory expense in the period in which they occur

35
Q

It consists of the system of monitoring, controlling and recording of acquisition and disposal of inventory.

A

Accounting System of Inventory

36
Q

What are the sub-systems for inventory accounting?

A
  1. Receipt, inspection acceptance and recording deliveries of inventory items.
  2. Requisition and issue of inventory items.
  3. Transfer and/or disposal of inventory items.
37
Q

They prepare the Purchase Request (PR) form.

A

End users

38
Q

This prepares the Purchase Order (PO).

A

Purchasing Unit

39
Q

It prepares the Inspection and Acceptance Report (IAR)and forwards it to the Property Inspector.

A

Property/Supply Division

40
Q

They inspect the delivered items and fill up the Inspection and Acceptance Report.

A

Property Inspector

41
Q

It records accepted deliveries in the Stock Card (SC)

A

Property/Supply Division

42
Q

It records accepted deliveries in the books of accounts and in the Supplies Ledger Card (SLC).

A

Accounting Division

43
Q

It prepares the Disbursement Voucher (DV) then forwards it, together with the supporting documents, to the Accounting Division for processing of payment.

A

Property/Supply Division

44
Q

They prepare the Requisition and Issue Slip (RIS) to request for the issuance of inventory.

A

End users

45
Q

It prepares the Report of Supplies and Materials Issued (RSMI).

A

Property/Supply Division

46
Q

It uses the RSMI for recording in the books of accounts and updating of the Stock Ledger Card.

A

Accounting Division

47
Q

This is used to report wasted materials, such as destroyed spare parts and other spoilages.

A

Waste Materials Report

48
Q

It is used in reporting the results of physical counts.

A

Report on the Physical Count of Inventories

49
Q

It is used to report the movement and status of accountable forms.

A

Report of Accountability for Accountable Form

50
Q

It is prepared when issuing semi-expendable property.

A

Inventory Custodian Slip

51
Q
  • tangible assets;
  • held for use in the production or supply of goods, services or program outputs, for rental to others, or for administrative purposes, and not intended for resale in the ordinary course of operations; and
  • expected to be used for more than one reporting period
A

Property, Plant, and Equipment

52
Q

PPE shall be recognized as an asset if, and only if:

A
  1. It is probable that future economic benefits or service potential associated with the items will flow to the entity
  2. The cost or fair value can be measured reliably
  3. Beneficial ownership and control clearly rest with the government
  4. The asset is used to achieve government objectives
  5. It meets the capitalization threshold of P50,000
53
Q

The capitalization threshold is applied on a per item basis, except

A
  • Individual items with values below the threshold but work together as a group are recognized as PPE if the total cost of the group is ₱50,000 or more
  • Bulk acquisitions of small items of PPE are recognized as PPE if their aggregate cost is ₱50,000 or more.
54
Q

An asset where ownership is not confined for entities in the public sector

A

Infrastructure Assets

55
Q

What are the characteristics of an Infrastructure Asset?

A
  1. They are part of the system or network.
  2. They are specialized in nature and do not have alternative uses.
  3. They are immovable.
  4. They are subject to constraints on disposal.
56
Q

It is a promise by a surety or guarantor to pay one party a certain amount if a second party fails to meet some obligation, such as fulfilling the terms of a contract. It protects the agency against losses resulting from the contractor’s failure to meet the obligation.

A

Surety Bond

57
Q

It include all activities and associated costs for transportation of contractor’s personnel, equipment, and operating supplies to the site; establishment of offices, buildings, and other necessary general facilities for the contractor’s operations at the site.

A

Mobilization Fee

58
Q

Reforestation projects are recorded as ______

A

land improvements

59
Q

Reforestation projects’ subsequent costs are accounted for as___

A

o Maintenance and protection costs incurred within the duration of the project are capitalized.
o Those incurred after the turn-over of the project are charged as expenses.

60
Q

What are the modes of acquisition?

A

a. Purchase
b. Construction
c. Exchange Transaction
d. Non-exchange Transaction
e. Finance Lease

61
Q

It refers to assets that are temporarily taken out of active use or temporarily abandoned; not derecognized but continued to be depreciated.

A

Idle PPE

62
Q

When its carrying amount is equal to zero or its residual value; not derecognized

A

Fully Depreciated PPE

63
Q

Those which do not have future economic benefits; it is derecognized.

A

Unserviceable Property

64
Q

It is used by the Supply/Property Division to record all movements in items of PPE. This is the equivalent of the Stock Card used for inventories.

A

Property Card

65
Q

It is used by the Accounting Division to record all movements in items of PPE, both in quantity and monetary amount. This is the equivalent of the Stock Ledger Card used for inventories.

A

Property, Plant and Equipment Ledger Card

66
Q

It is used by the Supply/Property Division to record the issuance of PPE to the end user. This is based on the approved Requisition and Issue Slip (RIS) submitted by the requesting individual. This is the equivalent of the Report of Supplies and Materials Issued used for inventories.

A

Property Acknowledgement Receipt

67
Q

At the end of each year, the entity shall perform a physical count of PPE and prepare this report. This report shall be submitted to the COA not later than January 31 of the following year.

A

Report on the Physical Count of Property, Plant and Equipment

68
Q

The report on the physical count of PPE shall be submitted to the COA _______

A

not later than January 31 of the following year

69
Q

It is used to account for all unserviceable property subject to disposal.

A

Inventory and Inspection Report for Unserviceable Property

70
Q

It is used by the accountable officer to notify the concerned officials of the lost, stolen, damaged or destroyed property.

A

Report of Lost, Stolen, Damaged or Destroyed Property

71
Q

It is used to record transfers of property from one accountable officer to another.

A

Property Transfer Report

72
Q

an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. (PPSAS 5.5)

A

Qualifying asset

73
Q

When does inventory acounting system start?

A

It starts with the receipt of the purchased inventory items.

74
Q

PPE measurement after recognition can be:

A

*cost model
*revaluation model

75
Q

if a PPE becomes available for its
intended use on or before the 15th of the month

Computation of depreciation

A

depreciation is computed at the beginning of that month.

76
Q

if a PPE becomes available for its
intended use after the 15th of the month

computation of depreciation

A

depreciation is computed at the beginning of the following month.

77
Q

Depreciation Methods

(three)

A
  1. Straight-line method
  2. Diminishing balance method
  3. Units of production method
78
Q

When is PPE derecognized?

A

When it is disposed or when no future economic benefits is expected from it.

79
Q

When is a PPE is impaired?

A

If its carrying amount exceeds its recoverable service amount or recoverable amount.

80
Q

What should be done if there is a lost PPE?

A
  • Officer having custody of the PPE
    o Notifies COA within 30 days
    o Submits an application for relief
    § Pending result, the accountability is established equal to the depreciated replacement cost of the
    lost PPE
    § If warranted, a credit for loss shall be allowed and accountability is reversed
    § If not warranted, the officer shall pay cash to settle accountability
81
Q

Types of Recognition of borrowing costs

A
  1. Benchmark Treatment
  2. Allowed Alternative Treatment
82
Q

Borrowing costs are expensed in the period incurred.

A

Benchmark Treatment

83
Q

Borrowing costs are capitalized if they are directly attributable to the acquisition of a qualifying asset.

A

Allowed Alternative Treatment

Gov Accy (10 decks)

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