Prefinals - Lecture notes 24 PDF

Title Prefinals - Lecture notes 24
Course Business Admnistration
Institution Western Philippines University
Pages 6
File Size 49.6 KB
File Type PDF
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Summary

No journal entry is prepared when a disbursement is made out of the petty cash fund.'True'.Only debt instruments with remaining maturity of 3 months or less can qualify as cash equivalents.'False'.A derivative derives its value from the changes in value of a specified rate, price, event or some othe...


Description

No journal entry is prepared when a disbursement is made out of the petty cash fund. 'True'. Only debt instruments with remaining maturity of 3 months or less can qualify as cash equivalents. 'False'. A derivative derives its value from the changes in value of a specified rate, price, event or some other variable. 'True'. According to GAM for NGAs all financial assets are initially measured at fair value. 'False'. A government entity established a P30,000 petty cash fund. The custodian must be bonded for at least P5,000. 'False'. Risk management is the process of identifying the desired level of risk, identifying the actual level of risk and altering the latter to equal the former. 'True'. According to GAM for NGAs all financial assets shall be initially measured at fair value plus transaction costs. 'False'. Transaction costs on financial assets classified under the held to maturity category are expensed outright. 'False'. According to GAM for NGAs government entities shall prepare bank reconciliations only at year-end or whenever the need arises. 'False'. The PCF of a government entity is replenished when disbursements reach at least 90% or as needed. 'False'. The PCF of a government entity is replenished when disbursements reach at least 90%, or as needed.

'False'. Entity A, a government entity, purchases relief goods which are to be held on standby, ready to be distributed when a calamity strikes. Entity A would likely classify the goods purchased as a. b. c. d.

Inventory held for consumption Purchases Inventory held for distribution None of these, only a note disclosure shall be made

Entity A wants to make disbursements online. Which of the following should Entity A do so that it can make valid disbursements online? a. Obtain a debit card or credit card that is either Visa or MasterCard from any bank. b. Enroll with the eMDS of the Land Bank of the Philippines c. Apply for a PayPal account d. Make a facebook account A government entity established a P30,000 petty cash fund. The custodian must be bonded for at least P5,000. 'False'. No additional cash advance shall be given to any official or employee unless the previous cash advance given to him is first liquidated. 'True'. Biological assets are initially and subsequently measured at fair value less costs to sell. 'True'. All disbursements shall be made through Disbursement Vouchers or Payroll which are approved by the Head of the Requisitioning Unit. 'False'. The accounting division of a government entity uses this to record and monitor the movements and balances of inventories. a. b. c. d.

Stock card Special journal Journal entry Stock ledger card

Living animals and plants are always accounted for as biological assets.

'False'. This refers to the cost an entity would incur to acquire an asset on the reporting date. a. b. c. d.

Fair value Present value Net realizable value Current replacement cost

According to the GAM for NGAs a biological asset is a. b. c. d.

A harvested product An animal or plant An asset used in farming A living animal or plant

The Non-Cash Availment Authority is a disbursement authority issued to government agencies with foreign service posts. 'False'. A loss can arise from the initial measurement of a biological asset. 'True'. Which of the following is an agricultural produce? a. b. c. d.

Powdered milk Harvested palay Carabao Extra rice

Which of the following may be paid through the petty cash fund of a government entity? a. b. c. d.

Rent worth P12,000 Office supplies worth P20,000 None of these Pantry supplies worth P15,000

Which of the following results to the recognition of expense? a. b. c. d.

Remittance of the refund for excess cash advance to the BTr Granting of cash advance for travel Refund of excess cash advance Liquidation of cash advance for travel

Entity A, a government hospital, acquires medicines to be sold in its pharmacy. Entity A would record the medicines acquired as

a. b. c. d.

Inventory held for distribution Inventory for consumption Inventory held for sale Semi-expendable property

The Chief Accountant shall charge obligations incurred against available allotment to ensure that a. b. c. d.

There are no unreleased appropriations. The NCA is sufficient to meet the disbursement needs. No excess allotment exists. No overdraft is incurred.

According to the GAM for NGAs government entities shall prepare bank reconciliations only at year-end or whenever the need arises. 'False'. The only valid modes of disbursement for a government entity are through cash or check. 'False'. Relief goods, office supplies, equipment and furniture and fixture are items that may appropriately be recorded as inventories by a government entity. 'True'. If the beginning inventory is P50, the net purchases are P100 and the cost of goods sold is P30, the ending inventory must be P120. 'True'. Which of the following is not one of the categories of financial assets under the GAM for NGAs? a. b. c. d.

Available-for-sale financial assets Held-to-maturity investments Financial asset through other comprehensive income Loans and receivables

A cash shortage of a government entity is most likely recorded as a a. b. c. d.

Credit to a cash shortage overage account Debit to a cash shortage or overage account Credit to miscellaneous income account Debit to a receivable account

Government entities are not allowed by law to make purchases using credit card.

'False'. Agricultural produce after the point of harvest is accounted for as a. b. c. d.

Inventory Investment property Prepaid assets PPE

According to the GAM for NGAs, these refer to incremental costs that are directly attributable to the acquisition, issue, or disposal of a financial instrument. a. b. c. d.

Costs to sell Transaction costs Variable costs Financial costs

The Purchase Request form is prepared when end users request for the issuance of items of inventory that are available on stock. 'False'. An essential element of agricultural activity is the management of the biological transformation of biological assets. 'True'. A certification on the availability of allotment is required before a disbursement of government funds is made. According to GAM for NGAs, who shall issue this certification? a. b. c. d.

Budget officer Requisitioning individual Chief accountant Head of agency

Agricultural produce is measured at fair value less costs to sell only at the point of harvest. 'True'. No journal entry is prepared when a disbursement is made out of the petty cash fund. 'True'. The GAM for NGAs allows government entities to use a periodic inventory system.

'False'. The specific identification cost formula is not available for use by the government entities according to the GAM for NGAs. 'False'. A derivative derives its value from the changes in value of a specified rate, price, event or some other variable. 'True'....


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