Chapter 6 - Accounting for Revenue and Other Receipts

Question 1

Which of the following statement is NOT true?

a. Receipts shall be recorded as revenue of Special, Fiduciary or Trust Funds or Funds other than the GF, only when authorized by law as implemented by rules and regulations issued by the Permanent/Committee.
b. No payment of any nature shall be received by a collecting officer without immediately issuing an official receipt in acknowledgement thereof.
c. An officer charged with the collection of revenue or the receiving of moneys payable to the government shall accept payment for taxes, dues or other indebtedness to the government in the form of cash excluding checks issued in payment of government obligations.
d. Except as may otherwise be specifically provided by law or competent authority, all moneys and property officially received by a public officer in any capacity or upon any occasion must, be accounted for as government funds and government property.

Answer 1

C

An officer charged with the collection of revenue or the receiving of moneys payable to the government shall accept payment for taxes, dues or other indebtedness to the government in the form of cash including checks issued in payment of government obligations.

Question 2

Which of the following statement is NOT true?

a. Fines shall include economic benefits or service potential received or receivable by a public sector agency, as determined by a court or other law enforcement body, as a consequence of the breach of laws or regulations.
b. Receipts/Collections shall refer to all cash actually received from all sources during a given accounting period.
c. Taxes do not include fines or other penalties imposed for breaches of the law.
d. Transfers are inflows of future economic benefits or service potential from exchange transactions, other than taxes.

Answer 2

D

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Question 3

Statement 1: All revenue (income) accruing to the departments, offices and agencies by virtue of the provisions of existing laws, orders and regulations shall be deposited in the NT or in the duly authorized depository of the Government and shall accrue to the General Fund of the Government, unless otherwise specifically provided by law.

Statement II: Only when authorized by law and following such rules and regulations as may be issued by the Permanent Committee shall Receipts be recorded as revenue of Special, Fiduciary or Trust Funds (TF) or Funds other than the GF.

a. Only statement I is true
b. Only statement Il is true
c. Both statements are true
d. Both statements are false

Answer 3

C

Question 4

These are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly give approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.

a. Exchange transactions
b. Non-exchange transactions
c. Transfers
d. None of the above

Answer 4

A

Question 5

These are transactions in which an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

a. Exchange transactions
b. Non-exchange transactions
c. Transfers
d. None of the above

Answer 5

B

Question 6

Statement 1: Revenue from non-exchange transactions shall be measured at the amount of the increase in net assets recognized by the entity, unless it is also required to recognize a liability.

Statement II: Revenue from exchange transaction shall be measured at fair value of the consideration received or receivable.

a. Only statement I is true
b. Only statement Il is true
c. Both statements are true
d. Both statements are false

Answer 6

C

Question 7

Statement 1: Interest shall be recognized as they are earned in accordance with the substance of the relevant agreement; and

Statement II: Dividends or similar distributions shall be recognized when the shareholder’s or the entity’s right to receive payment is established.

a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false

Answer 7

B

Question 8

Statement 1: When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is not regarded as a transaction which generates revenue.

Statement Il: When goods or services are exchanged or swapped for goods or services which are of a similar nature and value, the exchange is regarded as a transaction which generates revenue.

a. Only statement I is true
b. Only statement Il is true
c. Both statements are true
d. Both statements are false

Answer 8

D

Question 9

When an uncertainty arises about the collectability of an amount already included in revenue, the uncollectible amount, or the amount in respect of which recovery has ceased to be probable, is recognized as

a. an adjustment of the amount of revenue originally recognized
b. an impairment loss
c. an allowance for uncollectible account
d. any of the above

Answer 9

B

Question 10

Revenues received by the NGAs from exchange transactions are derived from the following except

a. Sale of goods or provisions of services to third parties or to other NGAs.
b. Use by other entity of assets yielding interest, royalties and dividends or similar distributions.
c. Taxes, gifts and donations, goods in kind and fines and penalties.
d. Interest income, royalties and dividends

Answer 10

C

Question 11

Which among the following is/are NOT reasons for the reversion to the General Fund of all other funds of the NG other than General Fund itself?

a. Funds are no longer necessary for the attainment of the purposes for which said Funds were established
b. Funds needed by the GF in times of emergency
c. None of the above
d. All of the above

Answer 11

C

Question 12

These are economic benefits or service potential received or receivable by NGAs, from an individual or other entity, as determined by a court or other law enforcement body, as a consequence of the individual or other entity breaching the requirements of laws or regulations.

a. Royalties
b. Taxes
c. Fines
d. Bequest

Answer 12

C

Question 13

These are economic benefits or service potential compulsory paid or payable to public sector agencies, in accordance with laws and or regulations, established to provide revenue to the government.

a. Royalties
b. Taxes
c. Fines
d. Bequest

Answer 13

B

Question 14

Which among the following if NOT true?

a. Transferred assets are measured at their fair value as at the date of acquisition.
b. Revenue from exchange transaction shall be measured at fair value of the consideration received or receivable.
c. When the inflow of cash or cash equivalents received or receivable is deferred, the fair value of the consideration is equal to the nominal amount of cash received or receivable.
d. Revenue from non-exchange transactions shall be measured at the amount of the increase in net assets recognized by the entity

Answer 14

C

Question 15

These do not meet the definition of an asset because the recipient entity is unable to control the access of the transferor to the future economic benefits or service potential embodied in the item pledged. These are unenforceable undertakings to transfer assets to the recipient entity.

a. Goods in kind
b. Services in kind
c. Pledges
d. Inter-agency fund transfers

Answer 15

C

Question 16

A check is dishonored when

a. the check is duly presented for payment and payment is accepted
b. the check is duly presented for acceptance, and such an acceptance as is
prescribed by law is refused
c. check paid to the agency that was drawn against sufficient fund
d. All of the above

Answer 16

B

Question 17

Which among the following is NOT true regarding dishonored checks?

a. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within sixty (60) days from the date of the check, shall be prima facie evidence of knowledge of such insufficiency of funds or credit unless such maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within five (5) banking days after receiving notice that such check has not been paid by the drawee.
b. A dishonored check shall be settled by tendering payment in cash or by certified check to the Collecting Officer concerned. No other mode of payment shall be accepted.
c. The Collecting Officer shall not return the check to the payor concerned upon settlement of the dishonored check in the manner herein prescribed, unless the latter first surrenders the previous OR therefore. If the previous receipt is no longer available, sworn statement to the effect that it has been lost or misplaced should be submitted by the payor.
d. Unless the agency head or the court shall direct otherwise. dishonored checks shall remain in the custody of the Collecting Officer, pending their redemption.

Answer 17

A

The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within ninety (90) days from the date of the check, shall be prima facie evidence of knowledge of such insufficiency of funds or credit unless such maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within (5) banking days after receiving notice that such check has not been paid by the drawee.

Question 18

Statement 1: Cash overage shall be taken up as Miscellaneous Income.

Statement Il: Cash overage that cannot be satisfactorily explained by the Collecting Officer shall be forfeited in favor of the Collecting Officer.

a. Only statement I is true
b. Only statement Il is true
c. Both statements are true
d. Both statements are false

Answer 18

A

Question 19

Cash received from central office/regional office/operating units of an entity and from another entity for the purpose of implementing specific projects.

a. Goods in kind
b. Services in kind
c. Pledges
d. Inter-agency fund transfers

Answer 19

D

Question 20

These are checks that become stale, voided or spoiled

a. Dishonored checks
b. Cancelled checks
c. Disqualified checks
d. Bad Checks

Answer 20

B