Professional Documents
Culture Documents
QUIZ
QUIZ
I -TRUE OR FALSE: Write the word true or false before each number.
1. Compared to the accounting for business entities, government accounting places greater
emphasis on the sources and utilization of government funds and the management’s
stewardship over government resources. TRUE
3. Other sources of funds of the government include fees, barrowings, and grants from other
governments and international bodies. TRUE
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. FALSE
6. The principles in the GAM for NGAs are similar to the principles in the PFRSs. TRUE
7. The GAM for NGAs is promulgated by the Philippine Congress under the authority conferred
to it under Philippine Constitution. FALSE
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 government entity. TRUE
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. FALSE
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. FALSE
12. An entity prepares its budget by simply rolling-over the budget in the previous year and
adjusting each line item by 10% increment to reflect inflation. This process is described as zero-
based budgeting. FALSE
13. After the budget call from the DBM, the proposed budget of various agencies are submitted
immediately to the Office of the President for review. FALSE
14. An entity can incur obligations after receiving notice of its appropriation but before receiving
the allotment. FALSE
15. Budget deliberations in the Congress start in the House of Senate. FALSE
16. A Government entity must first receive an allotment before it can incur obligations. TRUE
17. A government entity can make disbursements even before it receives a disbursement
authority. FALSE
19. The Notice of Cash Allocation (NCA) is an authority issued by the DBM to central, regional,
and provincial offices and operating units to cover their cash requirements. TRUE
20. Responsibility accounting greatly enhances budget accountability because managers are
evaluated only in terms of the costs or other variables that they control, and therefore, budget
deviations can be readily attributed to the managers accountable therefor. TRUE
1. Which of the following is a unique requirement of government accounting that is not required
in the accounting for business entities?
a. The use of double-entry recording system.
b. The use of single-entry recording system.
c. The use of accrual basis of accounting.
d. The presentation of budget information in the financial statements.
2. What is the legal basis of the COA in promulgating the GAM for NGAs?
a. P.D. No. 1445, State Audit Code of the Philippines
b. The Philippine Constitution
c. R.A. 9298, The Philippine Accountancy Act of 2004.
d. Philippine Public Sector Accounting Standards (PPSAS)
3. According to the GAM for NGAs, the basis of accounting to be applied by government entities
is the…
a. Cash basis
b. Accrual basis
c. Modified accrual basis
d. Any of these as a policy choice
4. Which of the following is not one of the fund clusters of a government of a government entity?
a. Regular Agency Fund
b. Foreign Assisted Projects Fund
c. Petty Cash Fund
d. Business Related Funds
5. To achieve a proper balance between relevance and reliability, the overriding consideration
is..
a. How users’ needs are best satisfied.
b. Relevance is always more important than reliability.
c. Reliability is always more important than relevance.
d. Greater weight shall be given to relevance compared to reliability.
8. It refers to the amount contracted by a duly authorized administrative officer for which the
government is held liable.
a. Appropriation
b. Allotment
c. Obligation
d. Disbursement
9. This summarizes an agency’s fiscal year plans and performance targets. It shows the agency’s
physical and financial plan, monthly cash program, estimate of monthly income, and list of
obligations that are not yet due and demandable.
a. Budget Execution Documents (BEDs)
b. Special Allotment Release Order
c. Statement of Approved Budget, Utilizations, Disbursements and Balances
d. Aging of Due and Demandable Obligations
10. Which of the following best describes the Notice of Cash Allocation (NCA)?
a. It is a form of legislative authorization in the allocation of funds for specified purposes.
b. It is a form of authorization to a government agency to incur obligations on behalf of the
government.
c. It is a form of authorization to a government agency to make disbursements on behalf
of the government.
d. It is a notice received from the Congress that cash is allocated for the payment of planned
expenditures.
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