Quiz 1-4 PDF

Preview

Summary

QUIZ 1: PUBLIC ACCOUNTING AND BUDGETING Which of the following records is technically not considered an accounting book? a. General Journal b. Subsidiary Ledger c. Cash Disbursements Journal d. Registry of Appropriations and Allotments Which of the following is (are) affected when a government entit...

Description

QUIZ%1:%PUBLIC%ACCOUNTING%AND%BUDGETING% 1. Which of the following records is technically not considered an accounting book? a. General Journal b. Subsidiary Ledger c. Cash Disbursements Journal d. Registry of Appropriations and Allotments 2. Which of the following is (are) affected when a government entity incurs obligations? a. ORS b. RAPAL c. RAOD d. a and c 3. Which of the following is (are) affected when a government entity makes disbursements to settle recorded obligations? a. ORS b. RAOD c. Journal and Ledger d. All of these 4. Which of the following accounts is most likely credited when a government entity remits its collections to the National Treasury? a. Cash-Tax Remittance Advice b. Cash-Modified Disbursement System (MDS), Regular c. Cash-Treasury/Agency Deposit, Regular d. Cash – Collecting Officers 5. This event is recorded in the books of accounts. a. Notice of Appropriation b. Notice of Allotment c. Notice of Cash Appropriation d. Closing entries 6. The receipt of allotment is recorded in the a. RAPAL b. RAOD c. ORS d. a and b 7. According to the GAM for NGAs, the Registries are (choose the incorrect statement) a. maintained by the accounting unit of a government entity b. maintained by fund cluster

c.

maintained for each object of expenditure, whenever the registry is used for monitoring obligations and disbursements d. maintained by the budget division of a government entity 8. The 8-digit Revised Chart of Accounts (RCA) Code for the account “Subsidy from National Government” starts with number a. 2 b. 3 c. 4 d. 6 9. Which of the following is not a form of disbursement authority? a. Allotment b. Notice of Cash Allocation c. Non-Cash Availment Authority d. Cash Disbursement Ceiling 10. The NCA is recorded in the a. Registry of Allotments and Notice of Cash Allocation (RANCA). b. Books of accounts (Journal and Ledger) c. Obligation Request and Status (ORS) d. a and b QUIZ: 11. Which of the following approaches to budget preparation provides the best internal control? a. Incremental budgeting b. Zero-sum budgeting c. Top-down budgeting d. Zero-based budgeting 12. This approach to budgeting requires the justification of items in the budget irrespective of whether they are new or carried over from the previous year. a. Zero-based budgeting b. Bottoms-up budgeting c. Incremental budgeting d. Bottoms-down budgeting 13. Which of the following is correct regarding zero-based budgeting? a. Several parties participate in the budget preparation starting from the lowest levels of the government to the highest levels. b. All zeroes in the budget are omitted. c. All proposed programs and expenditures in the upcoming year must be new. Programs and expenditures in the previous year should never be carried over to the next year. d. The current year’s budget is formulated without regardto the previous year’s budget.

14. Which of the following would most likely comes first in the budget process? a. Budget accountability report b. President’s enactment of the budget c. Presentation to the Office of the President d. Budget Call from the DBM 15. Which of the following would most likely comes last in the budget process? a. Budget accountability reports b. Allotment c. Disbursements d. Performance review 16. Entity A, a government entity, receives authorization to disburse funds not to exceed ₱1B in a specified period.This event can be described as a. Notice of Cash Allocation b. Allotment c. Appropriation d. Adontknowcation 17. Entity A, a government entity, receives notice that out of its ₱10B approved budget for the year, Entity A can incur obligations up to ₱4B in the first quarter. This event can be described as a. Notice of Cash Allocation b. Allotment c. Appropriation d. Amnotsurecation 18. Entity A, a government entity, receives notice that for the current year, the maximum amount it can spend on maintenance and other operating expenses is ₱10B. This event can be described as a. Notice of Cash Allocation b. Allotment c. Appropriation d. Budgetication 19. After receiving its obligational authority amounting to ₱4B, Entity A enters into binding agreements for the eventual payments of a total sum of ₱3B. The “₱3B” event can be described as a. Disbursement b. Allotment c. Disbursement authority d. Obligation 20. It is a part, segment, unit or function of a government agency,headed by a manager, who is accountable for a specified set of activities. a. Responsibility Accounting b. Responsibility Center c. Budget Center

d. Call Center QUIZ 21. A government entity recognizes revenue from exchange or non-exchange transactions. Which of the following may not give rise to revenue by a government entity? a. Receipt of military equipment as donation from a foreign government. b. Receipt of cash donation from an international organization. c. Receipt of free trainings and seminars regarding process technology on farming from an international organization. d. Receipt of a bequest from the king of a foreign realm. 22. All of the following give rise to the recognition of revenue from non-exchange transaction except a. sale of goods c. fines and penalties b. taxes d. donation of goods in-kind 23. According to P.D. 1445, all revenues of an entity shall be remitted to the National Treasury and included in the a. General Fund c. National Fund b. Special Fund d. Official Fund 24. Remittances of collections to the National Treasury are recorded as a debit to which of the following accounts a. Cash – Collecting Officers b. Cash-Treasury/Agency Deposit, Regular c. Cash-Modified Disbursement System (MDS), Regular d. Subsidy from National Government 25. The national government received a foreign grant conditioned on the construction of a public infrastructure. Entity A was chosen as the implementing agency. When the national government received the grant, the entry in the BTr’s books included a a. credit to the “Subsidy from National Government” account. b. debit to the “Cash – Modified Disbursement System (MDS), Regular” account. c. credit to the “Cash in Bank-Local Currency, BangkoSentralngPilipinas” account. d. credit to the “Other Deferred Credits” account. 26. At the end of the period, the “Cash-Treasury/Agency Deposit, Regular” account is closed to the a. Subsidy from National Government account. b. Accumulated Surplus or Deficit account. c. Cash-Modified Disbursement System (MDS), Regular account. d. This account is not closed. 27. Which of the following does not give rise to revenue from assistance or subsidy? a. Inter-agency Fund Transfer b. Notice of Cash Allocation

c. Tax Remittance Advice d. Non-Cash Availment Authority 28. According to P.D. 1445, a. Amounts received in trust and from business-type activities of the government may be separately recorded. b. All revenues of an entity shall be retained by the entity and included in its General Fund, unless another law specifically allows otherwise. c. A collecting officer shall immediately issue a temporary receipt upon collecting a payment of any nature. d. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash receipts, the BIR may approve, upon request, the exemption from the use of accountable forms. 29. According to the GAM for NGAs, revenue includes only those that are received or receivable by the entity in its own account. Accordingly,receipts on behalf of another entity are a. recorded as liability. b. recognized as revenue. c. recorded only in the registries but not in the books of accounts. d. remitted only through the use of the TRA. 30. Government entities and business entities use the same accounting treatment for all of the following except a. trade discounts allowed to customers. b. recognizing revenue from royalty agreements. c. recognizing revenue from dividends. d. remittance of taxes withheld to the BIR QUIZ:

31. It encompasses the processes of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof. a. Government accounting b. Government reporting c. Government auditing d. Tax accounting 32. The GAM for NGAs is promulgated by the a. Commission on Accounting (COA) b. Commission on Audit (COA) c. Board of Accountancy (BOA) d. Bureau of Internal Revenue (BIR)

33. The Commission on Audit (COA) is responsible for a. the formulation and implementation of the national budget with the goal of attaining the nation’s socio-economic objectives. b. receiving and keeping national funds and managing and controlling the disbursements thereof. c. directly implementing the projects of the government. d. promulgating accounting and auditing rules and regulations. 34. Which of the following is not charged with government accounting responsibility? a. Commission on Audit b. Bureau of Internal Revenue c. Non-stock, non-profit private hospital d. Department of Budget and Management 35. Which of the following qualitative characteristics may be sacrificed when reporting information on a timely basis? a. Relevance b. Reliability c. Substance over form d. Faithful representation 36. According to the GAM for NGAs, information has this qualitative characteristic if it can be used to assist in evaluating past, present or future events or in confirming or correcting past evaluations. a. Feedback value b. Predictive value c. Materiality d. Relevance 37. This refers to the comparability between the financial statements of different entities? a. Inter-comparability b. Intra-comparability c. Horizontal comparability d. Vertical comparability 38. When the substance of a transaction or event differs from its legal form, the entity should report the transaction’s or event’s a. substance b. legal form c. a trade-off between a and b d. either a or b, based on their significance 39. The implication that users must be informed of the entity’s policies, changes to those policies, and the effects of those changes refers to a. Comparability

b. Completeness c. Understandability d. Reliability 40. In the financial reporting system of the national government, to which of the following shall an entity reconciles its cash records? a. Commission on Audit b. Bureau of Treasury c. Department of Budget and Management d. Office of the President...