True or false Flashcards
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
True
Taxes are the main source of funds of the government.
True
Other sources of funds of the government include fees, borrowings, and grants
from other governments and international bodies.
True
Currently, the financial reporting of government entities is based on NGAs.
False
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.
False
The principles in the are similar to the principles i GAM for NGAs n the PFRSs.
True
The GAM for NGAs is promulgated by the Philippine Congress under the
authority conferred to it under the Philippine Constitution.
False
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.
True
The is promulgated primarily to harmonized governmen GAM for NGAs t
accounting standards with the U.S. GAAP.
False
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.
False
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.
False
The GAM for NGAs requires the Collecting Officer to issue an official receipt to
acknowledge the receipt of the Notice of Cash Allocation.
False
Taxes are compulsory payments, imposed on persons, properties or activities,
intended to provide revenue to the government. Taxes include fees, fines and
penalties.
False
According to the GAM for NGAs, the receipt of concessionary loans by
government entities may give rise to revenue recognition.
True
