True or false

Question 1

Compared to the accounting for business entities, government accounting places greater emphasis on the sources and utilization of government funds and the managements stewardship over government agencies

Answer 1

True

Question 2

Taxes are the main source of funds of the government.

Answer 2

True

Question 3

Other sources of funds of the government include fees, borrowings, and grants
from other governments and international bodies.

Answer 3

True

Question 4

Currently, the financial reporting of government entities is based on NGAs.

Answer 4

False

Question 5

The principles used in the financial reporting of government entities are very
unique that only a very few of these principles are similar to those that are
applied to business entities.

Answer 5

False

Question 6

The principles in the are similar to the principles i GAM for NGAs n the PFRSs.

Answer 6

True

Question 7

The GAM for NGAs is promulgated by the Philippine Congress under the
authority conferred to it under the Philippine Constitution.

Answer 7

False

Question 8

A unique financial reporting requirement of government entities is the use of
fund cluster accounting. Under fund cluster accounting, separate books and
reports are prepared for each type of fund held by a government entity.

Answer 8

True

Question 9

The is promulgated primarily to harmonized governmen GAM for NGAs t
accounting standards with the U.S. GAAP.

Answer 9

False

Question 10

An item is recognized as an asset if it meets both the “probable” future
economic benefits” and “reliable measurement” criteria, regardless of whether
the item is a resource controlled arising from past events.

Answer 10

False

Question 11

The budget preparation in the Philippines uses a “bottom-up” approach. Under
this approach, the budget preparation starts from the highest levels of the
government down to the lowest levels.

Answer 11

False

Question 12

The GAM for NGAs requires the Collecting Officer to issue an official receipt to
acknowledge the receipt of the Notice of Cash Allocation.

Answer 12

False

Question 13

Taxes are compulsory payments, imposed on persons, properties or activities,
intended to provide revenue to the government. Taxes include fees, fines and
penalties.

Answer 13

False

Question 14

According to the GAM for NGAs, the receipt of concessionary loans by
government entities may give rise to revenue recognition.

Answer 14

True