PRELIM?? Flashcards
What is the legal basis of the COA in promulgating the GAM for NGAs?
a. Revised Penal Code, Art. 217
b. State Audit Code of the Philippines, P.D. No. 1445, Sec. 109
c. Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the
Philippines
d. R.A. 9298
c. Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the
Philippines
The GAM for NGAs aims to update all of the following except
a. standards, policies, guidelines and procedures in accounting for government funds and
property
b. coding structure and accounts
c. accounting books, registries, records, forms, reports and financial statements
d. rules and regulations regarding the filing and payment of taxes by government
employees
d. rules and regulations regarding the filing and payment of taxes by government
employees
Which of the following is one of the Fundamental Principles for Revenue under the GAM for
NGAs?
a. No payment of any nature shall be received by a collecting officer without immediately
issuing an official receipt in acknowledgement thereof. The receipt may be in the form of
postage, internal revenue or documentary stamps and the like, officially numbered
receipts, subject to proper custody, accountability, and audit.
b. Temporary receipts may be issued to acknowledge the receipt of public funds; provided
that, an official receipt is issued within a short period of time as may be prescribed by
the COA.
c. Money in the hands of the Collecting Officer may be utilized for the purpose of cashing
private checks, upon proper endorsement and identification of the payee or endorsee.
Checks drawn in favor of the government in payment of any such indebtedness shall
likewise be accepted by the officer concerned.
d. All of these
a. No payment of any nature shall be received by a collecting officer without immediately
issuing an official receipt in acknowledgement thereof. The receipt may be in the form of
postage, internal revenue or documentary stamps and the like, officially numbered
receipts, subject to proper custody, accountability, and audit.
Which of the following is not one of the Fundamental Principles for Disbursement of Public
Funds under the GAM for NGAs?
a. No money shall be paid out of any public treasury or depository except in pursuance of
an appropriation law or other specific statutory authority.
b. Government funds or property shall be spent or used solely for public purposes.
c. Trust funds shall be available and may be spent only for the specific purpose for which
the trust was created or the funds received.
d. Fiscal responsibility shall, to the greatest extent, be assumed solely by the Head of the
government agency.
d. Fiscal responsibility shall, to the greatest extent, be assumed solely by the Head of the
government agency.
Which of the following statements is incorrect regarding the GAM for NGAs?
a. The COA shall keep the general accounts of the Government and, for such period as may
be provided by law, preserve the vouchers and other supporting papers pertaining
thereto, pursuant to Section 2, par. (1), Article IX-D of the 1987 Philippine Constitution.
b. The financial reporting system of the Philippine government consists of accounting
system on accrual basis and budget reporting system on budget basis under the statutory
responsibility of the NGAs, Bureau of the Treasury (BTr), Department of Budget and
Management (DBM), and the COA.
c. The objectives of general purpose financial statements (GPFSs) are to provide information
about the financial position, financial performance, and cash flows of an entity that is
useful to a wide range of users in making and evaluating decisions about the allocation
of resources. Specifically, the objectives of general purpose financial reporting in the
public sector are to provide information useful for decision-making, and to demonstrate
the accountability of the entity for the resources entrusted to it.
d. The DBM accounts for the cash, public debt and related transactions of the NG
d. The DBM accounts for the cash, public debt and related transactions of the NG
This accounting concept is necessary so that users can use information in the financial
statements in noting differences and similarities between those information presented and
information from other sources that the user may have.
a. Financial statement analysis and ratios
b. Understandability
c. Comparability
d. Feedback value or confirmatory value
c. Comparability
Which of the following principles is not in accordance with the Basic Government Accounting
and Budget Reporting Principles under the GAM for NGAs?
a. modified accrual basis of accounting in accordance with the PPSAS
b. budget basis for presentation of budget information in the financial statements (FSs) in
accordance with PPSAS 24
c. RCA prescribed by COA
d. financial statements based on both accounting and budgetary records
e. fund cluster accounting
a. modified accrual basis of accounting in accordance with the PPSAS
The NGAs are responsible for
a. promulgating accounting and auditing rules and regulations.
b. implementing the national budget with the goal of attaining the nation’s socio-economic
objectives.
c. receiving and keeping national funds and managing and controlling the disbursements
thereof.
d. directly implementing the projects of, and performing the functions delegated by, the
government.
d. directly implementing the projects of, and performing the functions delegated by, the
government.
The basis of accounting required by the GAM for NGAs is
a. Budget basis
b. Modified accrual basis
c. Cash basis
d. Accrual basis
d. Accrual basis
The President’s explanation of the country’s fiscal policy and budget priorities is contained
in a document called the
a. National Expenditure Program
b. President’s Budget Message
c. President’s Fiscal Policy and Priorities
d. Budget of Expenditures and Sources of Financing
b. President’s Budget Message
After the incurrence of obligations, the next step in the budget cycle is
a. Allotment
b. Disbursement
c. Appropriation
d. Disbursement authority
d. Disbursement authority
It is the expenditure authority derived from appropriation laws, government ordinances, and
other decisions related to the anticipated revenue or receipts for the budgetary period.
a. Notice of Cash Allocation
b. Allotment
c. Approved Budget
d. General Appropriations Bill
c. Approved Budget
After the budget call, budget hearings are made whereby agencies defend their proposed
programs and expenditures for the upcoming year before the
a. COA
b. DBM
c. Congress
d. BTr
b. DBM
Under responsibility accounting, a cost is considered controllable at a given level of
managerial responsibility if
a. the manager has the power to incur it within a given period of time.
b. the cost is non-recurring, can be measured with sufficient reliability and is not immaterial
c. the cost is a fixed cost, such that its incurrence is reasonably certain.
d. all of these
a. the manager has the power to incur it within a given period of time
Which of the following statements best differentiates the government accounting process from
the accounting process of a business entity?
a. The government accounting process involves numerous complicated steps or procedures
that are beyond the understanding of a mere JPIA member, but not for a CPA.
b. The government accounting process involves procedures that are not generally acceptable
for business entities.
c. The government accounting process is similar to that of a business entity, except that it
incorporates budgetary controls, such as recording in the budget registries and preparing
periodic budget accountability reports.
d. Unlike for the accounting process of business entities which ends in the preparation of
general purpose financial statements, the government accounting process ends with the
audit by the COA
c. The government accounting process is similar to that of a business entity, except that it
incorporates budgetary controls, such as recording in the budget registries and preparing
periodic budget accountability reports.
This report, required of government entities, shows the names of creditors, the amounts owed
to them, and the number of days these obligations are outstanding. This report is submitted
to the COA and DBM within 30 days after the end of the year.
a. List of Not Yet Due and Demandable Obligations
b. Aging of Due and Demandable Obligations
c. Percentage of Obligations Report
d. Report on Allotments, Obligations and Disbursements
b. Aging of Due and Demandable Obligations
Under this approach to budgeting, several parties participate in the budget preparation,
starting from the lowest levels of the government up to the highest levels.
a. Bottoms-up budgeting
b. Zero-based budgeting
c. Incremental budgeting
d. Bottom-up budgeting
d. Bottom-up budgeting
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 accounting
b. Government reporting
c. Government auditing
d. Tax accounting
a. Government accounting
The GAM for NGAs is promulgated by the
a. Commission on Accounting (COA)
b. Commission on Audit (COA)
c. Board of Accountancy (BOA)
d. Bureau of Internal Revenue (BIR)
b. Commission on Audit (COA)
The Commission on Audit (COA) is responsible for
a. the formulation and implementation of the national budget with the goal of attaining the
nation’s socio-economic objectives.
b. receiving and keeping national funds and managing and controlling the disbursements
thereof.
c. directly implementing the projects of the government.
d. promulgating accounting and auditing rules and regulations
d. promulgating accounting and auditing rules and regulations
Which of the following is not charged with government accounting responsibility?
a. Commission on Audit
b. Bureau of Internal Revenue
c. Non-stock, non-profit private hospital
d. Department of Budget and Management
c. Non-stock, non-profit private hospital
