Government Accounting test bank PDF

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GOVERNMENT ACCOUNTING RESPONSIBILITYQ1. Which of the following maintains the journals and ledgers?National Government AgenciesQ2. Which of the following is tasked in keeping the general accounts of the government, supporting vouchers, and other documents?Commission on AuditQ3. Government agency ABC ...

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GOVERNMENT ACCOUNTING RESPONSIBILITY Q1. Which of the following maintains the journals and ledgers? National Government Agencies Q2. Which of the following is tasked in keeping the general accounts of the government, supporting vouchers, and other documents? Commission on Audit Q3. Government agency ABC is entrusted with government resources. According to P.D. 1445, who is directly responsible for the efficient and effective utilization of these resources? The head of government agency ABC Q4. Accounting responsibility is mandated by the Constitution of the Philippines. The head of the agency and other personnel who have authority over government funds are directly responsible. Only statement 1 is true Q5. Which is not true about government funds? Government funds can be transferred from one officer to another in accordance with the instructions of the head of the office. Q6. Mr. A, a government employee entrusted with the custody of government funds has lost the funds due to force majeure. What should Mr. A do to relieve him from liability? Mr. A should immediately notify the COA within 30 days Q7. Which is in charge of implementing the national budget? Department of Budget and Management Q8. What is the role of the Bureau of Treasury in relation to government accounting responsibility? To receive and keep national funds and manage or control thereof Q9. Which is not charged with government accounting responsibility? Legislative Department Q10. Mr. B, an accountable officer, used government resources for his personal needs. Which of the following statements is true? Mr. R is personally liable for unlawful use of government resources.

BUDGETARY ACCOUNTS, GAM, AND FS OF NGAS Q1. All disbursements of government entities must be in conformity with the law and the National budget Q2. If financial information is not reported on a timely basis, it does not possess Relevance Q3. The equity account of a government agency is called Accumulated surplus/deficit Q4. The GAM for NGAs is promulgated by the Senate under the authority bestowed by the Philippine Constitution. Its purpose is to harmonize government accounting standards with the U.S. GAAP. Both statements are false.

Q5. These refer to the attributes of financial information that make them relevant to users. Qualitative characteristics Q6. These are authorizations programmed annually or for some other period prescribed by law which do not require periodic action by Congress. Automatic Appropriations Q7. Which is true about the principles that govern financial transactions and operations of the government? Government money shall be paid only when provided by law or other specific statutory authority. Q8. The committee formed to harmonize conflicts between the Representatives and Senate versions of the General Appropriations Bill is called Bicameral Conference Committee Q9. Arrange the following steps according to the sequence that they appear in the budget cycle. I. II. III. IV.

Allotment Appropriation Incurrence of obligation Disbursement

II, I, III, IV Q10. Which of the following is not one of the specific accounting systems of a government agency? Deposit and withdrawal system Q11. Which qualitative characteristic of financial reporting pertains to freedom from material errors and bias? Neutrality

Q12. The registry used when NCA is received. RANCA Q13. It is an authorization issued by DBM to NGAs to incur obligations. Allotment Q14. Which of the following financial statements is peculiar to a government entity? Statement of Comparison of Budget and Actual Amounts Q15. In the Statement of Financial Performance of a government entity, the difference between total revenue and total operating expenses is called Surplus/deficit Q16. After the budget call from DBM, the proposed budget is submitted to the Office of the President. The President reviews the budget and sends it to Congress for further deliberation. Both statements are false. Q17. Allotment refers the authorization by the legislative body to allocate funds for purposes specified by the legislative of similar authority. A government entity must first receive an allotment before it can incur obligations. Only statement 2 is true. Q18. Which does not apply to responsibility accounting? Separate books of accounts for controllable and non-controllable costs

Q19. This is a budget that is prepared in such a way that estimated revenues exceed estimated expenditures. Balanced budget Q20. Which is not one of the aims of GAM? Update principles in auditing utilization of government funds Q21. Illustrate the Budget Cycle by drawing the different phases in accordance with the logical sequence. You can elaborate more your answer with an explanation in paragraph form (not exceeding 200 words).

MIDTERM SUMMATIVE ASSESSMENT #1 Q1. This registry shall be maintained by Appropriation Act, by Fund Cluster, by Major Fund Output or Program/Activity/Project for personnel services. Registry of Allotments, Obligations and Disbursements – Personnel Services Q2. Which of the following statements best differentiates the government accounting process from the accounting process of a business entity? The government accounting process is similar to that of a business entity, except that it incorporates budgetary controls, such as recording in the budget registries and preparing periodic budget accountability reports. Q3. It is a government-wide harmonized, budgetary, treasury, and accounting code classification. UACS Q4. Which of the following statements best describes the various Registries maintained by government entities? The Registries primarily serve as an internal control for controlling and monitoring the conformance of actual results with the approved budget. Q5. Which is a budget execution document? Financial Plan Q6. Which account has a UACS subject code of 1030501000? Receivables – Disallowances/Charges Q7. It is the process of analyzing, recording, classifying, summarizing and communicating all transactions involving receipt and disposition of government funds and property and interpreting the results thereof. Government accounting Q8. In the RCA, which of the following is intra-agency receivable? Due from Operating Units Q9. In the RCA, which is a service income account? Clearance and Certification Fees Q10. Under responsibility accounting, non-controllable costs are Costs incurred indirectly and allocated to a responsibility level Q11. One of the following principles is used to both commercial and government accounting. Double entry bookkeeping service Q12. This accounting concept is necessary so that 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.

Comparability Q13. This is the authorization by a legislative body to allocate funds for specified purposes Appropriation Q14. Which is not contained in the budget call? Country’s fiscal policy and budget priorities Q15. It is the legislative consideration, review and approval of the national budget. Authorization Q16. This phase in the budgetary process deals with monitoring conformance of actual reports with planned targets. Budget accountability Q17. Which is not a key element of UACS? Project code Q18. This refers to annual authorization for incurring obligations. New General Appropriation Q19. This is the phase where government funds are spent. Budget execution Q20. Which of the following statements in incorrect regarding the GAM for NGAs? The DBM accounts for the cash, public debt and related transactions of the NG. Q21. Responsibility accounting is a system that related the financial reports to a responsibility center. It is a system that measures the plans and actions of each responsibility center. Both statements are true. Q22. It is a statement of estimated receipts and estimated expenses of the government which serves as basis for a general appropriation bill. National government budget Q23. Which account is peculiar to government accounting? Share from National Wealth Q24. The basis of accounting required by the GAM for NGAs is Accrual basis Q25. Government funds include public moneys of every sort and other resources pertaining to any agency of the government. Government funds or property shall be spent or used solely for private purpose. Only statement 1 is true. Q26. These are the appropriations for the purchase of goods and services the benefits of which extend beyond the fiscal year and which add to the assets of the government. Capital outlays Q27. It is applied in the preparation of the national budget where the total estimated revenue must be more than estimated expenditures. Balanced budget

Q28. This qualitative characteristic of financial reporting refers to freedom from material error and bias. Reliability Q29. Which is not a sub-major account group? Basic Salary – Civilian Q30. The NGAs are responsible for Directly implementing the projects of, and performing the functions delegated by, the government Q31. The coverage of the GAM for NGAs includes all of the following, except Basic concepts used in auditing the accounts and financial reports of government entities Q32. Which registry contains columns for allotments, obligations, unobligated allotments, and unpaid obligations? RAOD Q33. It is the basis for coding the object classification in the COA RCA. Accrual accounting Q34. It is a budget which covers items not adequately provided or not at all included in the general appropriation law. Special budget Q35. This report, required of government entities, shows the names of creditors, the amounts owed to them, and the number of days these obligations are outstanding. This report is submitted to the COA and DBM within 30 days after the end of the year. Aging of Due and Demandable Obligations Q36. Which is not a budget and financial accountability report? Physical plan Q37. Which is not a financial expense? Documentary Stamp Expense Q38. It is a budget that focuses on specific expenditures such as PERA, training expenses, and utility expenses. Line item budget Q39. Which is a financial expense? Management Supervision Q40. 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. Allotment Q41. The RAOD shall be maintained to record allotments, obligations and disbursements. It shall show the allotment received for the year, obligations incurred, and the actual disbursements made. Both statements are true. Q42. Fund cluster accounting involves Maintaining separate books and budget registries for each fund Q43. Under responsibility accounting, a cost is considered controllable at a given level of managerial responsibility if The manager has the power to incur it within a given period of time

Q44. It is the expenditure authority derived from appropriation laws, government ordinances, and other decisions related to the anticipated revenue or receipts for the budgetary period. Approved Budget Q45. Which does not belong to fund cluster code values? Externally generated funds Q46. It refers to a fund which is available for any purpose other than those which other funds have been designated to General fund Q47. The President’s explanation of the country’s fiscal policy and budget priorities is contained in a document called the President’s Budget Message Q48. Which office maintains accounts of financial transactions of all national government offices, agencies, and instrumentalities? Bureau of Treasury Q49. These are intended to meet the needs of users who are not in a position to demand reports tailored to meet their particular information needs. General purpose financial statements Q50. It is the amount committed to be paid by the government arising from an act of a duly authorized administrative officer and which binds the government to the immediate and eventual payment of money. Allotment Q51. Which is a major account group? Cash and Cash Equivalents Q52. This is the authority issued by the DBM to central, regional and provincial offices and operating units to cover their cash requirements. Notice of cash allocation Q53. The UACS was jointly developed by the following departments except Joint Legislative-Executive Council Q54. Which of the following principles is not in accordance with the Basic Government Accounting and Reporting Principles under the GAM for NGAs? Modified accrual basis of accounting in accordance with the PPSAS Q55. The account with an RCA code of 20601010 is a/an Liability account Q56. Which document is not contained in the President’s budget? Government budget map Q57. The GAM for NGAs aims to update all of the following except Rules and regulations regarding the filing and payment of taxes by government employees Q58. In the RCA, this group represents classification within the major account The sub-major account group Q59. Which is the sub-major account group?

Land Q60. It is the system of prescribing the procedures for recording, appropriations, allotments and obligations. Budgetary accounting Q61. Which is the UACS code of Trust Receipts? 08 Q62. It refers to an accounting entity for recording expenditures and revenues associated with a specific activity for which accounting records are maintained and periodic financial reports are maintained. Fund cluster accounting Q63. Which is not an expense under Personnel Services? Training expense Q64. Which is an inter-agency payable account? Due to BIR Q65. What is the legal basis of the COA in promulgating the GAM for NGAs? Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines Q66. Which is not a maintenance and other operating expenses account? Subsistence allowance Q67. After the budget call, budget hearings are made whereby agencies defend their proposed programs and expenditures for the upcoming year before the DBM Q68. In the context of responsibility accounting, government agencies are basically cost centers because Their primary purpose is to render service to the public at the lowest possible cost Q69. Which registry contains columns for allotment received, notice of cash allocation received and utilized, and balances for unutilized notice of cash allocation and unfunded allotment? RANCA Q70. This refers to authorization programmed annually or for some other period prescribed by law which do not require periodic action by Congress. Automatic appropriations Q71. The RAPAL shall be maintained to monitor appropriations and allotments charged thereto. It shall be maintained by COA to ensure that allotment releases are valid. Only statement 1 is true. Q72. Which of the following is not one of the registries maintained by a government entity? Registries of Journals and Ledgers Q73. It is a budgeting approach that uses performance information to assist in deciding where the funds will go. Performance-informed budgeting Q74. Which is the RCA code of Advances to Contractors? 19902010 Q75. It represents the accounts classification as to assets, liabilities, equity, income and expenses.

Account group Q76. After the incurrence of obligations, the next step in the budget cycle is Disbursement authority Q77. Which is a sub-major account group Land Q78. Under this approach to budgeting, several parties participate in the budget preparation, starting from the lowest levels of the government up to the highest levels Bottom-up budgeting Q79. Which of the following events or transactions requires recording in the books of accounts of a government entity? Disbursement authority Q80. It is a plan or program of activities together with the cost of undertaking them to meet goals or targets which emphasize on expected results. Performance budget Q81. Government accounting aims to provide information concerning past operations and present conditions. It also aims to provide a basis for guidance for future operations. Only statement 1 is true.

GOVERNMENT ACCOUNTING PROCESS Q1. A check disbursement is normally recorded as a credit to the “Cash - Modified Disbursement System (MDS), Regular” account. True Q2. According to the GAM for NGAs, the Registries are (choose the incorrect statement) Maintained by the accounting unit of a government entity Q3. The receipt of allotment is recorded in the RAPAL and RAOD Q4. Which of the following accounts is most likely credited when a government entity remits its collections to the National Treasury? Cash - Collecting Officer Q5. A disbursement authority issued by the DBM to DFA and DOLE to utilize their income collected/retained by the foreign service posts to cover their operating requirements, but not to exceed the released allotment to the said post. CDC Q6. Both the ORS and RAOD are updated each time an obligation is incurred, a payable is recorded for the obligation incurred, and disbursements are made to settle the recorded payables. True Q7. Entity A, a government entity, made disbursements for the travelling expenses of its personnel. This is classified as Maintenance and other operating expenses Q8. The remittance of amount withheld to the other government agencies, such as the BIR, BOC, GSIS, PhilHealth, and PAG-IBIG is done through the TRA. False Q9. The receipt of an allotment is recorded by a government entity in the

RAOD and RAPAL Q10. Which of the following records is technically not considered an accounting book? Registry of Appropriations and Allotments Q11. Which of the following is (are) affected when a government entity makes disbursements to settle recorded obligations? All of these Q12. The entry to record the reversion of unused NCA at the end of the period is the exact opposite of the entry to record the receipt of NCA. True Q13. The various registries maintained by government entities primarily serve as internal control for controlling and monitoring the conformance of actual results with the approved budget. True Q14. According to the RCA, the “Subsidy from National Government” account is a/an Revenue account Q15. Expenditures to acquire long-term assets are classified as Capital outlays Q16. Which of the following accounts is credited when the government entity remits contributions to the GSIS, PhilHealth, and PAGIBIG? Cash - Modified Disbursement System (MDS), Regular Q17.

In MNOP’s first quarter Statement of Appropriations, Allotments, Obligations, Disbursements and Balances, how much is shown as “unpaid obligations”? P2B Q18. “Advances for Payroll” is a/an Asset account Q19. Which of the following is recorded in the ORS? Entering into employment contracts with employees Q20. The account “Personal Economic Relief Allowance (PERA)” is a/an Personnel services account Q21. This event is recorded in the books of accounts. Closing entries Q22. The “Subsidy from National Government” account is debited when recording Reversion of unused NCA Q23. The GAM for NGAs requires the Collecting Officer to issue an official receipt to acknowledge the receipt of the NCA.

False Q24. The receipt of an appropriation is recorded by a government entity in the RAPAL Q25. Which of the following is not a form of disbursement authority? Allotment Q26.

The P60B authorization is referred to as Allotment Q27. Which of the following accounts is debited when the government entity remits its collections to the National Treasury? Cash - Treasury/Agency Deposit, Regular Q28. Which of the following is charged with the responsibility of keeping the general accounts and related documents of the government? Commission on Audit Q29. Which of the following is credited when a government entity receives the NCA? Subsidy from National Government

Q30. In MNOP’s first quarter Statement of Appropriations, Allotments, Obligations, Disbursements and Balances, how much is shown as “unobligated allotments”? P5B Q31. Obligation recorded in the registries but not yet in the accounting books are referred to as Not yet due and demandable Q32. The entry to record the receipt of NCA by a government entity includes a debit to Cash-Modified Disbursement System (MDS), Regular

Q33.

In MNOP’s first quarter Statement of App...