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    This document contains a student's answers to a quiz on Chapters 1 and 2 regarding government accounting. The quiz contains 20 multiple choice and true/false questions testing the student's understanding of key concepts such as: [1] The unique emphasis of government accounting on sources and uses of funds; [2] The legal basis for government accounting standards in the Philippines; [3] Key elements of the budgeting and spending process for government entities such as appropriations, allotments, and obligations. The student answered the questions, demonstrating knowledge of these important accounting concepts for government entities.

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    This document contains a student's answers to a quiz on Chapters 1 and 2 regarding government accounting. The quiz contains 20 multiple choice and true/false questions testing the student's understanding of key concepts such as: [1] The unique emphasis of government accounting on sources and uses of funds; [2] The legal basis for government accounting standards in the Philippines; [3] Key elements of the budgeting and spending process for government entities such as appropriations, allotments, and obligations. The student answered the questions, demonstrating knowledge of these important accounting concepts for government entities.

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    7K views4 pages

    QUIZ

    Uploaded by

    Bryan Ibarrientos
    This document contains a student's answers to a quiz on Chapters 1 and 2 regarding government accounting. The quiz contains 20 multiple choice and true/false questions testing the student's understanding of key concepts such as: [1] The unique emphasis of government accounting on sources and uses of funds; [2] The legal basis for government accounting standards in the Philippines; [3] Key elements of the budgeting and spending process for government entities such as appropriations, allotments, and obligations. The student answered the questions, demonstrating knowledge of these important accounting concepts for government entities.

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    © All Rights Reserved
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    of 4

    Name: IBARRIENTOS, BRYAN M.

    Student no. 18-11984

    QUIZ 1: Chapters 1 & 2

    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

    2. Taxes are the main source of funds of the government. TRUE

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

    4. Currently, the financial reporting of government entities is based on NGAS. FALSE

    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

    9. The GAM for NGAs is promulgated primarily to harmonized government accounting


    standards with the U.S .GAAP. FALSE

    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

    18. Appropriation is also called obligational 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

    II – MULTIPLE CHOICE: Encircle the correct answer.

    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.

    6. Responsibility accounting requires all of the following except


    a. Separate books of accounts to segregate controllable and non-controllable costs.
    b. Identification of responsibility centers
    c. Distinction between controllable and non-controllable costs
    d. Coding structure for responsibility centers

    7. Disbursements by government entities are most commonly made through..


    a. MDS Checks
    b. Cash
    c. Advice to Debit Account (ADA) other electronic means.
    d. Any or combination of the above.

    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.

    - END -

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