Professional Documents
Culture Documents
Accounting Gov Reviewer
Accounting Gov Reviewer
Questions Answers
1. The carrying amount of inventory is not The inventory is used in the
recognized as expense in this type of event production of another asset.
or transaction.
2. The President’s explanation of the country’s President’s Budget Message
fiscal policy and budget priorities is
contained in a document called the
3. All of the above involves the physical transfer Remittance of taxes through
of cash except the Tax Remittance
Advice<br />
4. The initial testing costs incurred on an item of capitalized after deducting
property, plant and equipment are the disposal proceeds of
samples generated during
testing.
5. The GAM for NGAs aims to update all of the rules and regulations
following except regarding the filing and
payment of taxes by
government employees
6. Which of the following may qualify as An agricultural land
investment property? purchased for appreciation
purposes
7. The journal entry to record the collection of Dr) Cash-Treasury/Agency
unbilled tax revenue (e.g., Travel Tax) Deposit, Regular. Cr)Travel
through direct deposit in Authorized Agent Tax<br />
Banks is<br />
8. Entity A acquires equipment from a supplier, Non-Cash Availment Authority
on account. A lender settles the account of (NCAA)<br />
Entity A by directly paying the supplier the
proceeds of a loan payable that is recorded
in the BTr’s books. This mode of disbursement
is called
9. Entity A, a government entity, records Entity A is not compliant with
purchases of items of inventory under the the requirements of GAM for
“Purchases” account and freight-in under NGAs.
the “Freight-in” account. Which of the
following statements is correct?
10. According to the GAM for NGAs, revenue False
from exchange transactions are measured at
the amount of cash received.
11. It is a report that is prepared for the purpose bank reconciliation statement
of bringing the balances of cash per records
and per bank statement into agreement.
12. This refers to charges for the use of cash or Interest income
cash equivalents, or amounts due to the
entity.
13. Under this inventory system, purchases, sales, Perpetual inventory system
and other transactions affecting inventory
are recorded in the “inventory” and “cost of
sales” accounts, as appropriate. Moreover,
stock cards and stock ledgers are
maintained.<br />
14. Which of the following is not one of the Registries of Journals and
registries maintained by a government Ledgers
entity?
15. This account is debited when government Cash-Treasury/Agency
entities remit collections to the National Deposit, Regular
Treasury.
16. If the unadjusted balance of cash per bank Outstanding checks
statement is greater than the adjusted
balance and there no other reconciling
items or errors, the difference would most
certainly be caused by a
17. It is a type of fund held by a government Special fund
entity that is designated for special purposes.
18. This approach to budgeting requires the Zero-based budgeting
justification of items in the budget
irrespective of whether they are new or
carried over from the previous year.
19. All of the following may cause the The check is dishonored.
cancellation of a check drawn by a
government entity except
20. Entity A is a government hospital. Entity A when the services are
would most likely recognize revenue from rendered and the patient is
services rendered to a patient billed.<br />
21. Which of the following transactions is not Constructive remittance of
recorded through a credit to the “Cash- taxes withheld to the BIR.
Modified Disbursement System (MDS),
Regular” account?<br />
22. The receipt of subsidy from the national gives rise to the recognition of
government or other government agencies revenue
23. These refer to transactions in which one Exchange transactions
entity receives assets or services, or has
liabilities extinguished, and directly gives
approximately equal value to another entity
in exchange.
24. Entity A, a government entity, has an unused Dr) Subsidy from National
NCA of ₱50,000 at the end of the current Government Cr) Cash-
year. The entry to record the reversion of Modified Disbursement
unused NCA is System (MDS), Regular<br />
25. Which of the following statements is incorrect The DBM accounts for the
regarding the GAM for NGAs? cash, public debt and related
transactions of the NG.
26. The GAM for NGAs is promulgated by the Commission on Audit (COA)
27. According to the PPSAS, a financial asset is an entity becomes a party to
recognized when the contractual provisions of
the instrument.
28. The basis of accounting required by the Accrual basis
GAM for NGAs is<br />
29. Entity A, a government entity, purchases as Inventory Held for
office supplies. Entity A would most likely Consumption
record the purchase
30. Who owns the goods in transit under FOB Buyer
shipping point?
31. Which of the following statements best The Registries primarily serve
describes the various Registries maintained as an internal control for
by government entities? controlling and monitoring
the conformance of actual
results with the approved
budget.
32. Which of the following statements is incorrect Unreleased checks are
regarding the accounting for unreleased physically cancelled.
checks by a government entity?
33. A government entity recognizes revenue Receipt of a pledge.
from exchange or non-exchange
transactions. In which of the following
transactions does a government entity need
not recognize revenue?
34. It is the expenditure authority derived from Approved Budget
appropriation laws, government ordinances,
and other decisions related to the
anticipated revenue or receipts for the
budgetary period.<br />
35. After the budget call, budget hearings are DBM
made whereby agencies defend their
proposed programs and expenditures for the
upcoming year before the<br />
36. According to the GAM for NGAs, the receipt True
of concessionary loans by government
entities may give rise to revenue recognition.
37. The taxable event for income tax is the False
passage of the time period for which the tax
is levied
38. For government entities, inventories are Used in the production of
assets (choose the incorrect one) goods.
39. A government entity remitting collections to Cash-Treasury/Agency
the BTr will debit this account to record the Deposit, Regular
remittance.
40. For government entities, the capitalization ₱15,000 or more
threshold for PPE is
41. This consolidates all issued Requisition and Report of Supplies and
Issue Slips (RIS) for inventories and is used in Materials Issued (RSMI)
updating both the Stock Card and the Stock
Ledger Card
42. What is the legal basis of the COA in Article IX-D, Section 2 par. (2)
promulgating the GAM for NGAs? of the 1987 Constitution of the
Republic of the Philippines
43. It is a hedge of the exposure to changes in Fair value hedge
fair value of a recognized asset or liability or
an unrecognized firm commitment, or an
identified portion of such an asset, liability or
firm commitment, that is attributable to a
particular risk and could affect surplus or
deficit.
44. After the incurrence of obligations, the next Disbursement authority
step in the budget cycle is
45. Which of the following statements is incorrect PAS 41 and the GAM for
regarding the accounting for biological NGAs have the same
assets? accounting treatment for
consumable and bearer
plants.
46. Entity A exchanges an item of PPE with Entity at the carrying amount of the
B. Assuming the exchange lacks commercial asset given up, plus cash paid
substance, how should Entity A measure the or minus cash received
equipment received from the exchange?
47. The entry to record a disbursement from the None of these.
petty cash fund is
48. Which of the following statements regarding Officials and employees
the disbursement of government funds is authorized to travel shall be
incorrect? granted cash advance to
cover traveling expenses. The
amount granted shall be
accounted for as “Due to
Officers and Employees.”
49. Which of the following is one of the No payment of any nature
Fundamental Principles for Revenue under shall be received by a
the GAM for NGAs? 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.
50. It is an authority issued by an agency’s Notice of Transfer of
Central Office to its regional and operating Allocation (NTA)
units to cover the latter’s cash requirements.
51. Which of the following reflects a Non-Cash Dr) Accounts Payable
Availment Authority (NCAA) mode of Cr)Subsidy from National
disbursement? Government
52. Which of the following is considered a Pig
biological asset?
53. Which of the following measurement bases is cost less accumulated
acceptable for the subsequent impairment losses
measurement of an investment property held
by a government entity?
54. Which of the following government agencies DOLE
will most likely be able to obtain a
disbursement authority in the form of Cash
Disbursement Ceiling (CDC)?
55. This accounting concept is necessary so that Comparability
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.
56. Entity A, a government entity, grants a ₱8,000
₱10,000 cash advance for the travelling
expenses of an employee. The employee
liquidates ₱8,000 of the cash advance and
remits the excess cash advance of ₱2,000.
After recording the grant of cash advance
and the liquidation thereof but before
adjustment for the collection of the excess
cash advance, how much is the recorded
expense in the books of accounts?
57. The constructive remittance of taxes withheld true
through the TRA gives rise to the recognition
of revenue.
58. Which of the following statements is correct A building being rented out to
regarding investment properties? the entity’s employees who
are paying rentals at market
rates is not an investment
property.
59. The distinguishing characteristic that Generates separately
identifies an investment property from the identifiable cash flows from
other assets of an entity is? the other assets of the entity.
60. It is an authority issued by an agency’s Used in the production of
Central Office to its regional and operating goods.
units to cover the latter’s cash requirements.
61. Which of the following would result to an The repayment of a loan
increase or decrease in the revenue payable is forgiven.
reported by a government' 'entity in its
statement of financial performance?
62. Which of the following is not one of the Fiscal responsibility shall, to
Fundamental Principles for Disbursement of the greatest extent, be
Public Funds under the GAM for NGAs? assumed solely by the Head
of the government agency.
63. When cash flows are deferred, the fair value True
of the consideration receivable is its present
value.
64. Which of the following statements is correct Trust funds shall be available
regarding the Fundamental Principles for and may be spent only for
Disbursement of Public Funds under P.D. No. the specific purpose for which
1445? the trust was created or the
funds received.
65. Which of the following does not qualify as Money market placement
cash equivalent for a government entity? with an original term of 3
months.
66. Which of the following documents is Inventory Custodian Slip
prepared when issuing semi-expendable
property to end-users?
67. The Commission on Audit (COA) is promulgating accounting
responsible for and auditing rules and
regulations.
68. Which of the following is not charged with Non-stock, non-profit private
government accounting responsibility? hospital
69. According to the GAM for NGAs, cash cash advances to authorized
disbursements are made through personnel
70. Which of the following modes of NCAA
disbursements would result to the recognition
of a loan payable in books of the BTr?
71. Which of the following items are classified by Office supplies and similar
a government entity as Inventory Held for materials.
Consumption?
72. Which of the following may be capitalized as Professional fees
cost of property, plant and equipment?
73. Which of the following may not be included Treasury bills acquired 3
as part of cash in the note disclosures? months before maturity date
74. Entity A, a government entity, receives its No journal entry.
₱9M allotment. The journal entry to record
this event is
75. The issuer of a financial instrument shall any of these
classify the instrument, or its component
parts, on initial recognition as a
76. The taxable event for Value added tax (VAT) taxable activity.
is the a undertaking of
77. Entity A estimates a risk of loss on a Risk management
recognized asset at 20%. However, Entity A
can only accept a risk of 5%. Entity A then
enters into a forward contract to offset the
excess risk of 15%. This process is best
described as
78. Biological assets and agricultural produce probable future event
are recognized when all of the following are
present except
79. Relief and other welfare goods held for Inventory Held for Distribution
distribution are most likely to be classified by
a government entity as
80. If the unadjusted balance of cash per bank Deposits in transit
statement is less than the adjusted balance
and there no other reconciling items or
errors, the difference is most likely caused by
Quizziz- Non-proft
Questions Answers
1. ABC Organization, a non-profit entity, acquired 30,000
shares of stocks to be held as investment for
₱200,000 using unrestricted net assets. During the
year, ABC received cash dividends of ₱10,000. At
year-end, the shares have a fair value of
₱220,000. What is the effect of the transactions
described above on the year-end statement of
activities of ABC? increase (decrease)
2. Private not-for-profit organizations should report a either direct method or
statement of cash flows using the Indirect method
3. The machine of ABC Organization, a not-for-profit This event has a zero net
entity, has malfunctioned. Mang Tony, a effect on ABC’s net assets
professional mechanic, repaired the machine for
free. The fair value of the services is estimated at
₱10,000. Which of the following statements is
correct?
4. According to SFAS 117, the financial statements Basic information on the
of a not-for-profit entity should focus on the<br /> organization as a whole.
5. On the statement of activities of a private Function
university, expenses are reported by (use SFAS
117 in answering this question)
6. Financial accounting (financial reporting) applies All of these
to which of the following?
7. According to US GAAP, the accounting provision of a statement of
requirement unique to Voluntary Health and functional expenses that
Welfare Organizations (VHWO) is the reports expenses by both
functional and natural
classifications.
8. A non-profit organization receives donation of expenses and revenues
services in-kind from an accountant who was
consulted regarding the NPO’s financial reporting
system. The NPO will most likely recognize those
services as
9. On the statement of operations of a health care Unrestricted revenues.
organization, expenses are deducted from (use
SFAS 117 in answering this question)
1. OVERVIEW OF GOVERNMENT ACCOUNTING
Which of the following is (are) affected ORS, RAOD & Journal and Ledger
when a government entity makes
disbursements to settle recorded
obligations?
The journal entry to record the billing of Dr. Accounts Receivable
revenue (e.g., Communication Network Cr. Communication Network Fees
fee) is
Which of the following accounts is most Cash - Collecting Officers
likely credited when a government entity
remits its collections to the National
Treasury?
Which of the following records is Registry of Appropriation and Allotments
technically not considered an
accounting book?
4. GOV REVENUES AND OTHER RECEIPTS
Government entities and business Remittance of taxes withheld to
entities use the same accounting the BIR
treatment for all of the following
except
Which of the following does not give Inter-agency Fund Transfer
rise to revenue from assistance or
subsidy
At the end of the period, the Accumulated Surplus or Deficit
“Cash-Treasury/Agency Deposit, Account
Regular” account is closed to the
Which of the following statement is incorrect the same accounting treatment for
regarding the accounting for biological assets? consumable and bearer plants.
Which of the following statements is The GAM for NGAs requires the Collecting
incorrect? Officer to issue an official receipt to
acknowledge the receipt of the Notice
of Cash Allocation.
Entity A is a government hospital. Entity A upon billing, when goods are transferred
operates a pharmacy within the hospital. to the buyer.
Entity A would most likely recognize
revenue from sales of medicines in the
pharmacy
Lessee enters into a lease contract with The lease transfers ownership of the
Lessor. Which of the following would most leased asset to the Lessee if the Lessee
likely indicate a substantial transfer of risks pays the Lessor the leased asset’s fair
and rewards incidental to ownership of value, to be determined on payment
an asset? date.
Entity A exchanges an item of PPE with Add the cash paid to the initial
Entity B. How should Entity A account for measurement of the asset received.
any cash paid or received from the
exchange?
Arrange the following steps in the budget V, II, IV, I and III
process according to the sequence that
they appear in the budget cycle.<br
/>Allotment<br />Bicameral
deliberations<br />Budget accountability
reports<br />President’s enactment of the
GAA<br />Budget hearings with the DBM