GOVERNMENT ACCOUNTING

THEORIES

1. It is the process 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 auditingb. National governmentc. Government budgetingd. Government accounting

1. It is the process 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 auditingb. National governmentc. Government budgetingd. Government accounting

2. What is the accounting system under the new government accounting system?

a. Accrual basisb. Modified accrual basisc. Cash basisd. Modified cash basis

2. What is the accounting system under the new government accounting system?

a. Accrual basisb. Modified accrual basisc. Cash basisd. Modified cash basis

3. The modified accrual basis means

a. All expenses are recognized when incurred and all income is recognized when earned

b. All expenses are recognized when paid and all income is recognized when earned

c. All expenses are recognized when paid and all income is recognized when received

d. All expenses are recognized when incurred and all income is recognized when earned except for transactions where accrual basis is impractical or when other method is required by law

3. The modified accrual basis means

a. All expenses are recognized when incurred and all income is recognized when earned

b. All expenses are recognized when paid and all income is recognized when earned

c. All expenses are recognized when paid and all income is recognized when received

d. All expenses are recognized when incurred and all income is recognized when earned except for transactions where accrual basis is impractical or when other method is required by law

4. Which is not a basic feature of the new government accounting system?

a. For a more simplified accounting, only one fund is maintained

b. A new coding structure and a new chart of accounts with a three-digit numbering system shall be adopted

c. Depreciation is regularly taken up in government accounting using the straight line method with a 0.10% residual value

d. The use of corollary and negative entry shall be stopped

4. Which is not a basic feature of the new government accounting system?

a. For a more simplified accounting, only one fund is maintained

b. A new coding structure and a new chart of accounts with a three-digit numbering system shall be adopted

c. Depreciation is regularly taken up in government accounting using the straight line method with a 0.10% residual value

d. The use of corollary and negative entry shall be stopped

5. What is the legal basis of the COA in prescribing the New Government Accounting System?

a. Presidential Decree No. 1445b. Legislative Actc. Constitution of the Republic of the

Philippinesd. Recommendation of the International

Monetary fund

5. What is the legal basis of the COA in prescribing the New Government Accounting System?

a. Presidential Decree No. 1445b. Legislative Actc. Constitution of the Republic of the

Philippinesd. Recommendation of the International

Monetary fund

6. The objectives of the NGAS include all of the following, except

a. To simplify government accountingb. To conform with International Accounting

Standardsc. To comply with the requirements of the

International Monetary Fundd. To generate periodic and relevant

financial reports for better monitoring of performance

6. The objectives of the NGAS include all of the following, except

a. To simplify government accountingb. To conform with International Accounting

Standardsc. To comply with the requirements of the

International Monetary Fundd. To generate periodic and relevant

financial reports for better monitoring of performance

7. The NGAS cannot be applied to which of the following?

a. City of Manilab. Department of Tourismc. Department of Financed. Barangay San Francisco

7. The NGAS cannot be applied to which of the following?

a. City of Manilab. Department of Tourismc. Department of Financed. Barangay San Francisco

8. The accounting reports of the government include all of the following, except

a. Pre-closing and post-closing trial balanceb. Balance sheet and statement of income

and expensesc. Cash flow statementd. Statement of retained earnings

8. The accounting reports of the government include all of the following, except

a. Pre-closing and post-closing trial balanceb. Balance sheet and statement of income

and expensesc. Cash flow statementd. Statement of retained earnings

9. In government accounting, supplies and materials purchased for inventory purposes shall be recorded using

a. FIFOb. Weighted averagec. Moving averaged. LIFO

9. In government accounting, supplies and materials purchased for inventory purposes shall be recorded using

a. FIFOb. Weighted averagec. Moving averaged. LIFO

10. The objectives of government accounting include all of the following, except

a. To produce information concerning past and present operations

b. To provide for control of the acts of public bodies and offices in the receipt, disposition and utilization of funds and property

c. To report on the financial position, performance and cash flows of government agencies

d. To provide information about financial position, performance and cash flows of public enterprises as a basis for making economic decisions

10. The objectives of government accounting include all of the following, except

a. To produce information concerning past and present operations

b. To provide for control of the acts of public bodies and offices in the receipt, disposition and utilization of funds and property

c. To report on the financial position, performance and cash flows of government agencies

d. To provide information about financial position, performance and cash flows of public enterprises as a basis for making economic decisions

11. The accounting books to be maintained under NGAS includeI. Regular Agency books – cash receipts journal,

cash disbursements journal, check disbursements journal, general journal, general ledger and subsidiary ledger

II. National Government books – cash journal, general journal, general ledger and subsidiary ledger

a. I onlyb. II onlyc. Both I and IId. Neither I nor II

11. The accounting books to be maintained under NGAS includeI. Regular Agency books – cash receipts journal,

cash disbursements journal, check disbursements journal, general journal, general ledger and subsidiary ledger

II. National Government books – cash journal, general journal, general ledger and subsidiary ledger

a. I onlyb. II onlyc. Both I and IId. Neither I nor II

12. Which of the following is not a Regular Agency book?

a. General journalb. General ledgerc. Cash journald. Check disbursements journal

12. Which of the following is not a Regular Agency book?

a. General journalb. General ledgerc. Cash journald. Check disbursements journal

13. Which of the following journals shall be used under the NGAS?

a. Journal of checks issuedb. Journal of bills renderedc. Journal of analysis of obligationsd. General journal

13. Which of the following journals shall be used under the NGAS?

a. Journal of checks issuedb. Journal of bills renderedc. Journal of analysis of obligationsd. General journal

14. What is the basis in recording transactions in the journals?

a. Journal entry voucherb. Journal of checks issuedc. Journal and analysis of obligationsd. Journal of bills rendered

14. What is the basis in recording transactions in the journals?

a. Journal entry voucherb. Journal of checks issuedc. Journal and analysis of obligationsd. Journal of bills rendered

15. It is the basis for the preparation of journal entry voucher for final recording in the cash disbursements journal

a. Report of disbursementb. Report of cash allocationc. Notice of cash allocationd. Cash book

15. It is the basis for the preparation of journal entry voucher for final recording in the cash disbursements journal

a. Report of disbursementb. Report of cash allocationc. Notice of cash allocationd. Cash book

16. It is the formal document issued by DBM to the head of the agency containing the authorization, condition and amount of allocation

a. Allotment release orderb. Allotment and obligation slipc. Notice of cash allocationd. Registry of allotment and obligation

16. It is the formal document issued by DBM to the head of the agency containing the authorization, condition and amount of allocation

a. Allotment release orderb. Allotment and obligation slipc. Notice of cash allocationd. Registry of allotment and obligation

17. The Notice of Cash Allocation isI. An authorization by the DBM to an agency to

withdraw cash from the National Treasury through the issuance of Modified Disbursement System checks

II. An authorization by the legislative body to make payments out of government funds under specified conditions and specific purposes

a. I onlyb. II onlyc. Both I and IId. Neither I nor II

17. The Notice of Cash Allocation isI. An authorization by the DBM to an agency to

withdraw cash from the National Treasury through the issuance of Modified Disbursement System checks

II. An authorization by the legislative body to make payments out of government funds under specified conditions and specific purposes

a. I onlyb. II onlyc. Both I and IId. Neither I nor II

18. The journal entry to be made by the government agency upon receipt of the Notice of Cash Allocation is

a. Cash – National Treasury, MDS Subsidy income from National Government

b. Cash in bank – local currency, current accountSubsidiary income from National Government

c. Cash in bank – local currency, savings accountSubsidy income from National Government

d. Cash in bank – local currency time depositSubsidiary income from National Government

18. The journal entry to be made by the government agency upon receipt of the Notice of Cash Allocation is

a. Cash – National Treasury, MDS Subsidy income from National Government

b. Cash in bank – local currency, current accountSubsidiary income from National Government

c. Cash in bank – local currency, savings accountSubsidy income from National Government

d. Cash in bank – local currency time depositSubsidiary income from National Government

19. A feature of government accounting that provides for the ceiling or maximum amount an agency can spend or incur in the performance of its functions is known as

a. Budgetary accountingb. Responsibility accountingc. Obligation accountingd. Fund accounting

19. A feature of government accounting that provides for the ceiling or maximum amount an agency can spend or incur in the performance of its functions is known as

a. Budgetary accountingb. Responsibility accountingc. Obligation accountingd. Fund accounting

20. It is a system of prescribing the procedures for recording appropriations, allotments and obligations

a. Fund accountingb. Budgetary accountingc. Obligation accountingd. Treasury disbursement coding system

20. It is a system of prescribing the procedures for recording appropriations, allotments and obligations

a. Fund accountingb. Budgetary accountingc. Obligation accountingd. Treasury disbursement coding system

21. This consists of the methods and practices of the government for planning, programming and budgeting, and its primary concern is the availability and use of money to provide the necessary services expected of the government

a. New Government Accounting Systemb. National Budget Systemc. Modern Accounting Systemd. Computerized Accounting System

21. This consists of the methods and practices of the government for planning, programming and budgeting, and its primary concern is the availability and use of money to provide the necessary services expected of the government

a. New Government Accounting Systemb. National Budget Systemc. Modern Accounting Systemd. Computerized Accounting System

22. It is a statement of estimated receipts and estimated expenses of the government which serves as basis for a general appropriation bill

a. National government budgetb. Local government budgetc. Statement of financial positiond. Statement of operations

22. It is a statement of estimated receipts and estimated expenses of the government which serves as basis for a general appropriation bill

a. National government budgetb. Local government budgetc. Statement of financial positiond. Statement of operations

23. Which statement is incorrect concerning budget preparation?

a. Budget preparation is done by the Congress of the Republic of the Philippines

b. The budget preparation begins with the issuance of a “budget call” issued by the Department of Budget and Management

c. Budget preparation covers estimation of government revenue, determination of budgetary priorities and activities and the translation of approved priorities and activities into expenditure levels

d. Zero base budgeting may be used in the budget preparation

23. Which statement is incorrect concerning budget preparation?

a. Budget preparation is done by the Congress of the Republic of the Philippines

b. The budget preparation begins with the issuance of a “budget call” issued by the Department of Budget and Management

c. Budget preparation covers estimation of government revenue, determination of budgetary priorities and activities and the translation of approved priorities and activities into expenditure levels

d. Zero base budgeting may be used in the budget preparation

24. It is the enactment of the general appropriation bill into law by Congress

a. Budget preparationb. Budget authorizationc. Budget executiond. Budget accountability

24. It is the enactment of the general appropriation bill into law by Congress

a. Budget preparationb. Budget authorizationc. Budget executiond. Budget accountability

25. It is the implementation of the national government budget by different departments and release of allotments

a. Budget preparationb. Budget authorizationc. Budget executiond. Budget accountability

25. It is the implementation of the national government budget by different departments and release of allotments

a. Budget preparationb. Budget authorizationc. Budget executiond. Budget accountability

26. Budget accountability means any of the following, except

a. Periodic reporting by the government agencies of performance under the approved budget

b. Top management review of government activities and the fiscal and policy implications thereof

c. The action of COA in assuring fidelity of government officials and employees by carrying out the intent of Congress in regard to their handling of receipts and expenditures

d. Establishment of obligational authority ceilings, and regulation of fund release and implementation of cash payment schedule

26. Budget accountability means any of the following, except

a. Periodic reporting by the government agencies of performance under the approved budget

b. Top management review of government activities and the fiscal and policy implications thereof

c. The action of COA in assuring fidelity of government officials and employees by carrying out the intent of Congress in regard to their handling of receipts and expenditures

d. Establishment of obligational authority ceilings, and regulation of fund release and implementation of cash payment schedule

27. The phase in the national budget cycle which involves the comparison of performance with predetermined plans and the evaluation of expenditures and performance is called

a. Executionb. Authorizationc. Preparationd. Accountability

27. The phase in the national budget cycle which involves the comparison of performance with predetermined plans and the evaluation of expenditures and performance is called

a. Executionb. Authorizationc. Preparationd. Accountability

28. Zero base budgetingI. Is a process in the budget preparation which

requires consideration of all programs, projects and activities with the use of defined ranking procedures

II. Focuses on the objects of expenditures, such as salaries and wages, traveling expenses, freight, supplies, materials and equipment

a. I onlyb. II onlyc. Both I and IId. Neither I nor II

28. Zero base budgetingI. Is a process in the budget preparation which

requires consideration of all programs, projects and activities with the use of defined ranking procedures

II. Focuses on the objects of expenditures, such as salaries and wages, traveling expenses, freight, supplies, materials and equipment

a. I onlyb. II onlyc. Both I and IId. Neither I nor II

29. It is the preparation of the national government budget where the total estimated revenue must be more than the total estimated expenditures

a. Balanced budgetb. Supplemental budgetc. Zero base budgetd. Line item budget

29. It is the preparation of the national government budget where the total estimated revenue must be more than the total estimated expenditures

a. Balanced budgetb. Supplemental budgetc. Zero base budgetd. Line item budget

30. This is defined as the services, products or benefits accruing to the public estimated in terms of performance target

a. Expected resultsb. Programc. Projectd. Resources

30. This is defined as the services, products or benefits accruing to the public estimated in terms of performance target

a. Expected resultsb. Programc. Projectd. Resources

31. This is defined as cash and other resources of the government which are available for any purpose and which are not by law or contractual agreement specifically designated to another fund

a. General fundb. Special fundc. Trust fundd. Depository fund

31. This is defined as cash and other resources of the government which are available for any purpose and which are not by law or contractual agreement specifically designated to another fund

a. General fundb. Special fundc. Trust fundd. Depository fund

32. Which is not charged with the government accounting responsibility?

a. Commission on Auditb. Department of Budget and Managementc. Bureau of Treasuryd. Legislative Department

32. Which is not charged with the government accounting responsibility?

a. Commission on Auditb. Department of Budget and Managementc. Bureau of Treasuryd. Legislative Department

33. Which government body keeps the general accounts of the government?

a. Commission on Auditb. State Accounting and Auditing Centerc. Department of Financed. Department of Budget and Management

33. Which government body keeps the general accounts of the government?

a. Commission on Auditb. State Accounting and Auditing Centerc. Department of Financed. Department of Budget and Management

34. The government entity charged with the responsibility and approval of accounting system for government agencies is the

a. Commission on Auditb. Bureau of Treasuryc. Bangko Sentral ng Pilipinasd. Department of Budget and Management

34. The government entity charged with the responsibility and approval of accounting system for government agencies is the

a. Commission on Auditb. Bureau of Treasuryc. Bangko Sentral ng Pilipinasd. Department of Budget and Management

35. What is the role of the Bureau of Treasury in relation to government accounting responsibility?

a. To receive and keep national funds and manage or control disbursements thereof

b. To design, prepare and approve the accounting system of government agencies

c. To keep the general accounts of the national government

d. To prepare the annual financial report of the national government, its instrumentalities and government-owned or controlled corporations

35. What is the role of the Bureau of Treasury in relation to government accounting responsibility?

a. To receive and keep national funds and manage or control disbursements thereof

b. To design, prepare and approve the accounting system of government agencies

c. To keep the general accounts of the national government

d. To prepare the annual financial report of the national government, its instrumentalities and government-owned or controlled corporations

36. Which government body prepares the annual financial statements of the national government, local government, government agencies and government-owned or controlled corporations?

a. Commission on Auditb. Bureau of Treasuryc. Chief Accountant of each government

agencyd. Department of Budget and Management

36. Which government body prepares the annual financial statements of the national government, local government, government agencies and government-owned or controlled corporations?

a. Commission on Auditb. Bureau of Treasuryc. Chief Accountant of each government

agencyd. Department of Budget and Management

37. It is the authorization from the Department of Budget and Management to an agency to incur obligation up to a specified amount that must be within the legislative appropriation

a. Obligationb. Appropriationc. Allotmentd. Fund release

37. It is the authorization from the Department of Budget and Management to an agency to incur obligation up to a specified amount that must be within the legislative appropriation

a. Obligationb. Appropriationc. Allotmentd. Fund release

38. Allotments are recorded in the registries

a. At the beginning of the yearb. At the end of the yearc. Semiannuallyd. Quarterly

38. Allotments are recorded in the registries

a. At the beginning of the yearb. At the end of the yearc. Semiannuallyd. Quarterly

39. The term represents the allotment by Central office to its Regional office

a. Special allotmentb. Regular allotmentc. Suballotmentd. Allotment advice

39. The term represents the allotment by Central office to its Regional office

a. Special allotmentb. Regular allotmentc. Suballotmentd. Allotment advice

40. This is the notice of the allotment transferred by Regional Office to its operating unit

a. Letter of advice of allotmentb. Suballotmentc. Special allotmentd. Regular allotment

40. This is the notice of the allotment transferred by Regional Office to its operating unit

a. Letter of advice of allotmentb. Suballotmentc. Special allotmentd. Regular allotment