Accounting for Government and Not for profit organizations quiz 1 PDF

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AGN Quiz 1 1. The Government Accounting Manual shall be used by all National Government Agencies in the preparation of the general purpose financial statements in accordance with the Philippine Public Sector Accounting Standards. ❏ True ❏ False 2. Public sector are typically established by legislation and their objective is to provide goods or services to various recipients or to develop or implement policy on behalf of the government and not to make a profit. ❏ True ❏ False 3. Budget Accountability is simply achieved by comparing performance with predetermined plans. ❏ True ❏ False 4. The Government Accounting Manual is the government's key instrument for promoting its socio-economic objectives. ❏ True ❏ False 5. Financial expenses is one of the object of expenditures and includes bank charges, commitment charges, documentary stamp expense and rent expense. ❏ True ❏ False 6. The Department of Budget and Management consolidates all budgets to form a government-wide budget to be submitted to the President before it will be forwarded to the Congress. ❏ True ❏ False 7. Under the disbursement of public funds, it may be spent or used solely for any urgent purposes. ❏ True ❏ False 8. Allotment maybe referred to as a commitment that encompasses possible future liabilities based on current contractual agreement. ❏ True ❏ False 9. The Registries of Budget, Utilization and Disbursements shall be used to record the approved special budget and the corresponding sources and utilizations, receipts and disbursements. ❏ True ❏ False 10. Allotment is an authorization issued by the Department of Budget and Management to National Government Agencies to incur obligations for specified amount contained in a Notice of Cash Allocation.

❏ True ❏ False 11. Expenditure is an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money. ❏ True ❏ False 12. Budget Execution involves the regulation of fund release and the scheduling of preferred activities among others. ❏ True ❏ False 13. The responsibility for monitoring the budget execution rests primarily with the Bureau of Treasury as funds are being released. ❏ True ❏ False 14. The books of accounts under the Government Accounting Manual consists of journals, ledgers and registries. ❏ True ❏ False 15. Both the receipt of the Notice of Cash Allocation and remittances to the Bureau of Treasury are reflected in the Statement of Cash Flows. ❏ True ❏ False 16. Maintenance and other operating expenses includes traveling expenses, training and seminar expenses, acquisition, repair and maintenance of property, plant and equipment. ❏ True ❏ False 17. Appropriations are approved by the Commission on Audit in the form of General Appropriation Act. This will be forwarded to the President to sign it into law. ❏ True ❏ False 18. In the preparation of a budget, the proposed expenditures may be equal or more than the estimated revenues. ❏ True ❏ False 19. In the Registry of Appropriations and Allotments, the balance is extracted every time an entry is made to prevent incurrence of overdraft in collections or receipts. ❏ True ❏ False 20. The issuance of the expenditure authority to government agencies is under the Budget Legislation.

❏ True ❏ False 21. Taxpayers are entitled to see how the government is spending their money. ❏ True ❏ False 22. Original budget is the initial approved budget for the budget period usually the General Appropriation Act, which may not be exactly the final budget. ❏ True ❏ False 23. Personnel services includes basic pay, all authorized allowances, bonus, incentives and other personal benefits of officials and employees of the government. ❏ True ❏ False 24. The general purpose financial statements refers to the income, expenditures and sources of borrowings of the National Government that are used to achieve national objectives, strategies and programs. ❏ True ❏ False 25. Appropriation is the authorization made by the Department of Budget and Management to use funds for purposes it was approved. ❏ True ❏ False 26. The Notice of Cash Allocation shall be the authority of an agency to pay operating expenses, purchases of supplies and materials, acquisition of property, plant and equipment, accounts payable and other authorized disbursements. ❏ True ❏ False 27. One of the distinguishing characteristics of government accounting is the requirement of a budget which upon being approved shall be the basis for all expenditures. ❏ True ❏ False 28. Upon expiration of the period of validity, any unused funds shall be reverted to the Bureau of Treasury with a corresponding debit to an Asset account in the books of the National Government Agency. ❏ True ❏ False 29. Revenue funds comprise all funds derived from the income of any agency of the government and available for appropriation or expenditure in accordance with the law. ❏ True ❏ False

30. National Government consists of departments, bureaus, commissions while Local Government consists of provinces, cities, municipalities and barangays. ❏ True ❏ False 31. The Statement of Comparison of Budget and Actual Amounts may be presented by selected agencies. The statement will enhance the transparency of financial reporting in government. ❏ True ❏ False 32. The Statement of Financial Performance shall include line items that present the revenue, expenses and surplus or deficit for the period. ❏ True ❏ False 33. Acquisitions for capital outlay will automatically affect the Statement of Cash Flows for the year. ❏ True ❏ False 34. Government entities like profit oriented entities are reporting to shareholders, therefore it is important that they can account for funds received and show how they have been spent. ❏ True ❏ False 35. One of the objectives of government accounting is to provide for control of the acts of public bodies and offices in the receipt, disposition and utilization of public funds and property. ❏ True ❏ False 36. The primary objective of the Government Accounting Manual is to introduce the accounting books, registries, records, forms, reports and financial statements to be adopted by all national government agencies. ❏ True ❏ False 37. Registries are intended to take appropriate action if obligational authority exceed the expenditure authority. ❏ True ❏ False 38. Acquisition of building, land, equipment and furnitures are presented in the Statement of Financial Position and in the Statement of Financial Performance. ❏ True ❏ False 39. Obligations are the actual amount spent or paid out of the budgeted amounts. ❏ True ❏ False

40. The Release of Allotment is the authority issued by the Department of Budget and Management to central, regional and provincial offices and operating units to cover cash requirements of the agencies. ❏ True ❏ False 41. Cash Collecting Officer is an account title debited in the books of the agency upon receiving the Notice of Cash Allocation. ❏ True ❏ False 42. In the Registries of Allotment, Obligations and Disbursements, the balance is extracted every time an entry is made to prevent incurrence of obligations in excess of allotment and overdraft in disbursements against obligations incurred. ❏ True ❏ False 43. The fundamental principle for revenue is that any unused amount must be reverted to the Treasury depending on the period of validity. ❏ True ❏ False 44. The budget preparation begins with the issuance of a budget call issued by the Congress. ❏ True ❏ False 45. Accounts Payable must be credited upon signing of a contract made by a particular agency of the government with an accredited supplier. ❏ True ❏ False 46. The agency is authorized to incur obligations only in the performance of activities which are in pursuit of its functions and programs authorized in appropriation act. ❏ True ❏ False 47. The Notice of Cash Allocation constitute all cash paid out during a given period in cash or by check. ❏ True ❏ False 48. The account title Cash-National Treasury, Modified Disbursement System shall be debited upon collection of billings made by an agency. ❏ True ❏ False 49. In Budget Preparation, series of budget hearings/debate is conducted whereby the various of agencies would explain the details of their respective budgets. ❏ True ❏ False

50. Approved Budget is both the expenditure and disbursement authority derived from appropriation laws, government ordinances, and other decisions related to the anticipated revenue or receipts for the budgetary period. ❏ True ❏ False...