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MCQs Flashcards

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1
Q

Which of the following is not charged with government accounting responsibility?

a.Department of Budget and Management
b.Bureau of Internal Revenue
c.Commission on Audit
d.Non-stock, non-profit private hospital

A

d. Non-stock, non-profit private hospital

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2
Q

Entity A, a government entity, receives authorization to disburse funds not to exceed ₱1B in a specified period. This event can be described as

A

Notice of Cash Allocation

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3
Q

Which of the following would most likely comes first in the budget process?
a.Budget accountability report
b.President’s enactment of the budget
c.Presentation to the Office of the President
d.Budget Call from the DBM

A

d. Budget Call from the DBM

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4
Q

After receiving its obligational authority amounting to ₱4B, Entity A enters into binding agreements for the eventual payments of a total sum of ₱3B. The “₱3B” event can be
described as

a.Disbursement
b.Allotment
c.Disbursement authority
d.Obligation

A

d. Obligation

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5
Q

Which of the following is (are) affected when a government entity incurs obligations?
a. ORS
b. RAPAL
c. RAOD
d. a and c

A

d. a and c

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6
Q

In the financial reporting system of the national government, to which of the following shall an entity reconciles its cash records?

a. Commission on Audit
b. Bureau of Treasury
c. Department of Budget and Management
d. Office of the President

A

b. Bureau of Treasury

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7
Q

Which of the following accounts is most likely credited when a government entity
remits its collections to the National Treasury?

a. Cash-Tax Remittance Advice
b. Cash – Collecting Officers
c. Cash-Modified Disbursement System (MDS), Regular
d. Cash-Treasury/Agency Deposit, Regular

A

b. Cash – Collecting Officers

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8
Q
  1. Which of the following approaches to budget preparation provides the best internal
    control?

a. Incremental budgeting
b. Zero-sum budgeting
c. Top-down budgeting
d. Zero-based budgeting

A

d. Zero-based budgeting

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9
Q

Which of the following is correct regarding zero-based budgeting?

a. Several parties participate in the budget preparation starting from the lowest
levels of the government to the highest levels.
b. All zeroes in the budget are omitted.
c. All proposed programs and expenditures in the upcoming year must be new.
Programs and expenditures in the previous year should never be carried over
to the next year.
d. The current year’s budget is formulated without regard to the previous year’s
budget.

A

d. The current year’s budget is formulated without regard to the previous year’s
budget.

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10
Q
  1. The NCA is recorded in the

a. Registry of Allotments and Notice of Cash Allocation (RANCA).
b. Books of accounts (Journal and Ledger)
c. Obligation Request and Status (ORS)
d. a and b

A

d. a and b

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11
Q

This approach to budgeting requires the justification of items in the budget
irrespective of whether they are new or carried over from the previous year.

a. Zero-based budgeting
b. Bottoms-up budgeting
c. Incremental budgeting
d. Bottoms-down budgeting

A

a. Zero-based budgeting

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12
Q

According to the GAM for NGAs, the Registries are (choose the incorrect statement)

a. maintained by the accounting unit of a government entity
b. maintained by the budget division of a government entity
c. maintained for each object of expenditure, whenever the registry is used for
monitoring obligations and disbursements
d. maintained by fund cluster

A

a. maintained by the accounting unit of a government entity

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13
Q

The Commission on Audit (COA) is responsible for

a. receiving and keeping national funds and managing and controlling the
disbursements thereof.
b. promulgating accounting and auditing rules and regulations.
c. directly implementing the projects of the government.
d. the formulation and implementation of the national budget with the goal of
attaining the nation’s socio-economic objectives.

A

b. promulgating accounting and auditing rules and regulations

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14
Q

Which of the following records is technically not considered an accounting book?

a. General Journal
b. Subsidiary Ledger
c. Cash Disbursements Journal
d. Registry of Appropriations and
Allotments

A

d. Registry of Appropriations and Allotments

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15
Q

Entity A, a government entity, receives notice that out of its ₱10B approved budget for the year, Entity A can incur obligations up to ₱4B in the first quarter. This event can be described as

a. Notice of Cash Allocation
b. Allotment
c. Appropriation
d. Amnotsurecation

A

b. Allotment

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16
Q

According to the GAM for NGAs, information has this qualitative characteristic if it can be used to assist in evaluating past, present or future events or in confirming or correcting past
evaluations.

a. Relevance
b. Materiality
c. Predictive value
d. Feedback value

A

a. Relevance

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17
Q

The GAM for NGAs is promulgated by the

a. Commission on Accounting (COA)
b. Bureau of Internal Revenue (BIR)
c. Commission on Audit (COA)
d. Board of Accountancy (BOA)

A

c. Commission on Audit (COA)

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18
Q

Which of the following is (are) affected when a government entity makes disbursements to settle recorded obligations?

a. ORS
b. RAOD
c. Journal and Ledger
d. All of these

A

d. All of these

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19
Q

When the substance of a transaction or event differs from its legal form, the entity should report the transaction’s or event’s

a. substance
b. legal form
c. a trade-off between a and b
d. either a or b, based on their significance

A

a. substance

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20
Q

Which of the following would most likely comes last in the budget process?

a. Budget accountability reports
b. Allotment
c. Disbursements
d. Performance review

A

d. Performance review

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21
Q

It is a part, segment, unit or function of a government agency, headed by a manager, who is accountable for a specified set of activities.
a. Responsibility Accounting
b. Responsibility Center
c. Budget Center
d. Call Center

A

b. Responsibility Center

22
Q

Which of the following is not a form of disbursement authority?

a. Non-Cash Availment Authority
b. Cash Disbursement Ceiling
c. Allotment
d. Notice of Cash Allocation

A

c. Allotment

23
Q

The implication that users must be informed of the entity’s policies, changes to those policies, and the effects of those changes refers to

a. Comparability
b. Completeness
c. Understandability
d. Reliability

A

a. Comparability

24
Q

The receipt of allotment is recorded in the

a. RAPAL
b. RAOD
c. ORS
d. a and b

A

d. a and b

25
Q

Entity A, a government entity, receives notice that for the current year, the maximum amount it can spend on maintenance and other operating expenses is ₱10B. This event can
be described as

a. Notice of Cash Allocation
b. Allotment
c. Appropriation
d. Budgetication

A

c. Appropriation

26
Q

Which of the following qualitative characteristics may be sacrificed when reporting information on a timely basis?

a. Faithful representation
b. Substance over form
c. Reliability
d. Relevance

A

c. Reliability

27
Q

This refers to the comparability between the financial statements of different entities?

a. Vertical comparability
b. Intra-comparability
c. Inter-comparability
d. Horizontal comparability

A

c. Inter-comparability

28
Q

It encompasses the processes of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof.

a. Government auditing
b. Tax accounting
c. Government accounting
d. Government reporting

A

c. Government accounting

29
Q

The 8-digit Revised Chart of Accounts (RCA) Code for the account “Subsidy from
National Government” starts with number

a. 2
b. 4
c. 3
d. 6

A

b. 4

30
Q

This event is recorded in the books of accounts.

a. Notice of Cash Appropriation
b. Notice of Appropriation
c. Notice of Allotment
d. Closing entries

A

d. Closing entries

31
Q

Remittances of collections to the National Treasury are recorded as a debit to which
of the following accounts

a. Cash – Collecting Officers
b. Cash-Treasury/Agency Deposit, Regular
c. Cash-Modified Disbursement System (MDS), Regular
d. Subsidy from National Government

A

b. Cash-Treasury/Agency Deposit, Regular

32
Q

According to P.D. 1445, all revenues of an entity shall be remitted to the National
Treasury and included in the
a. Special Fund
b. Official Fund
c. General Fund
d. National Fund

A

c. General Fund

33
Q

According to the GAM for NGAs, revenue includes only those that are received or
receivable by the entity in its own account. Accordingly, receipts on behalf of another
entity are

a. remitted only through the use of the TRA.
b. recorded only in the registries but not in the books of accounts.
c. recognized as revenue.
d. recorded as liability

A

d. recorded as liability

34
Q

Which of the following does not give rise to revenue from assistance or subsidy?

a. Tax Remittance Advice
b. Non-Cash Availment Authority
c. Inter-agency Fund Transfer
d. Notice of Cash Allocation

A

c. Inter-agency Fund Transfer

35
Q

A government entity recognizes revenue from exchange or non-exchange
transactions. Which of the following may not give rise to revenue by a government
entity?

a. Receipt of military equipment as donation from a foreign government.
b. Receipt of cash donation from an international organization.
c. Receipt of free trainings and seminars regarding process technology on
farming from an international organization.
d. Receipt of a bequest from the king of a foreign realm.

A

c. Receipt of free trainings and seminars regarding process technology on
farming from an international organization.

36
Q

The national government received a foreign grant conditioned on the construction of a public infrastructure. Entity A was chosen as the implementing agency. When the national government received the grant, the entry in the BTr’s books included a

a. credit to the “Subsidy from National Government” account.
b. debit to the “Cash – Modified Disbursement System (MDS), Regular”
account.
c. credit to the “Other Deferred Credits” account.
d. credit to the “Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas”
account.

A

c. credit to the “Other Deferred Credits” account

37
Q

According to P.D. 1445,

a. A collecting officer shall immediately issue a temporary receipt upon
collecting a payment of any nature.
b. Where mechanical devices (e.g. electronic official receipt) are used to
acknowledge cash receipts, the BIR may approve, upon request, the
exemption from the use of accountable forms.
c. Amounts received in trust and from business-type activities of the
government may be separately recorded.
d. All revenues of an entity shall be retained by the entity and included in its
General Fund, unless another law specifically allows otherwise

A

c. Amounts received in trust and from business-type activities of the
government may be separately recorded.

38
Q

Government entities and business entities use the same accounting treatment for all
of the following except

a. remittance of taxes withheld to the BIR
b. recognizing revenue from royalty agreements.
c. recognizing revenue from dividends.
d. trade discounts allowed to customers.

A

a. remittance of taxes withheld to the BIR

39
Q

All of the following give rise to the recognition of revenue from non-exchange
transaction except

a. sale of goods
b. fines and penalties
c. taxes
d. donation of goods in-kind

A

a. sale of goods

40
Q

At the end of the period, the “Cash-Treasury/Agency Deposit, Regular” account is closed to the

a. Subsidy from National Government account.
b. This account is not closed.
c. Cash-Modified Disbursement System (MDS), Regular account.
d. Accumulated Surplus or Deficit account.

A

d. Accumulated Surplus or Deficit account.

41
Q

Payments of checks that are chargeable against the Treasury Account are credited to the

a. Cash-Modified Disbursement System (MDS) account
b. Modified Disbursement System Checks
c. Commercial Checks
d. Advice to Debit Account

A

a. Cash-Modified Disbursement System (MDS) account

42
Q

All Disbursement Vouchers (DVs) or Payroll shall be approved by the

a. COA Auditor
b. Head of Agency
c. Budget Officer
d. Chief Accountant

A

b. Head of Agency

43
Q

Which of the following is not one of the modes of disbursements by a government
entity?
a. online payment
b. payment through Short Messaging System (SMS)
c. check
d. credit card

A

b. payment through Short Messaging System (SMS)

44
Q

It is an authority issued by an agency’s Central Office to its regional and operating
units to cover the latter’s cash requirements.

a. Cash Disbursement Ceiling (CDC)
b. Notice of Transfer of Allocation (NTA)
c. Notice of Cash Allocation (NCA)
d. Tax Remittance Advice (TRA)

A

b. Notice of Transfer of Allocation (NTA)

45
Q

Which of the following shall certify the availability of allotment before obligations can be incurred and disbursements are made?

a. Chief Accountant
b. COA Auditor
c. Head of Agency
d. Budget Officer

A

d. Budget Officer

46
Q

Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of
disbursement?

a.
Accounts
Payable
Cash-Constructiv
e Income
Remittance
x
x
x x
x
x
b.
Accounts
Payable
Cash –
Modified
Disbursement
System
(MDS), Regular
x
x
x x
x
x
c.
Accounts
Payable
Subsidy from
National
Government
x
x
x
x
x
x

A

c.
Accounts
Payable
Subsidy from
National
Government
x
x
x
x
x
x

47
Q

Entity A makes payment through bank transfer. This mode of disbursement is most likely through the use of a(an)

a. MDS check
b. Commercial check
c. Advice to Debit Account
d. Credit Card

A

c. Advice to Debit Account

48
Q

Which of the following shall certify the availability of funds and completeness of
supporting documents before the Head of Agency or his/her authorized representative can enter into contracts that obligate the government for the eventual payment of government funds?

a. COA Auditor, jointly with DBM
b. Chief Accountant
c. BTr
d. Budget Officer

A

b. Chief Accountant

49
Q

According to the GAM for NGAs, cash disbursements are made through

a. cash advances to authorized personnel
b. direct cash payments by the Head of Agency to the payees
c. direct cash payment by Collecting Officers to payees
d. any of these

A

a. cash advances to authorized personnel

50
Q

Which of the following statements regarding the disbursement of government funds is incorrect?

a. No additional cash advance shall be given to any official or employee unless
the previous cash advance given to him is first liquidated.
b. Officials and employees authorized to travel shall be granted cash advance
to cover traveling expenses. The amount granted shall be accounted for as
“Due to Officers and Employees.”
c. Transfer of cash advance from one officer to another is prohibited.
d. A cash advance shall not be used to encash checks or to liquidate a
previous cash advance.

A

b. Officials and employees authorized to travel shall be granted cash advance
to cover traveling expenses.

Government Accounting (4 decks)

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