Quiz- chapter 2- budget process PDF

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Acctg. 13 NAME Nehyeban, Memory I. Quiz-Ch 2Multiple Choice. Encircle the letter of the correct answer. Which department prepares the national budget, which serves as the basis of the General Appropriation Act (GAA)? a. Executive Department b. Legislative department c. Judiciary department d. Nation...

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Acctg. 13 Quiz-Ch 2

NAME Nehyeban, Memory I.

Multiple Choice. Encircle the letter of the correct answer.

1. Which department prepares the national budget, which serves as the basis of the General Appropriation Act (GAA)? a. Executive Department b. Legislative department c. Judiciary department d. National Government Agencies/Units 2. 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 3. 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 4. It is the legislative consideration, review and approval of the national budget. a. Preparation b. Authorization c. Execution d. Accountability 5. It is the implementation of the national budget by different departments and rrelease of allotments. a. Preparation b. Authorization c. Execution d. Accountability 6. 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 regard to the previous year’s budget. 7. 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 8. Which of the following would most likely comes last in the budget process? a. Budget accountability reports b. Allotment c. Disbursements d. Performance review 9. After deliberations in both houses in the Congress are finished, a committee is formed to harmonize any conflicts between the Representatives and Senate versions of the General Appropriations Bill. This committee is called the a. Adjudication Conference Committee b. Bicaramel Conference Committee c. Reference Conference Committee d. Bicameral Conference Committee 10. This summarized 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 11. Arrange the following steps according to the sequence that they appear in the budget cycle. I. Allotment II. Disbursement authority III. Disbursement IV. Appropriation V. Incurrence of obligation a. b. c. d.

IV, I, II, V and III IV, I, V, III and II IV, I, V, II and III IV, V, I, II and III

12. 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 out of government funds. d. It is a notice received from the Congress that cash is allocated for the payment of planned expenditures. 13. This type of budget is prepared in such a way that estimated revenues exceed estimated expenditures. a. Balanced budget b. Excess budget c. Obligations budget d. Budget meal 14. 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. All of the above 15. 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. None of the above 16. It is the legislative authorization to allocate funds for specified purposes. a. Obligation b. Appropriation c. Allotment d. Commitment 17. 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. a. Obligation b. Appropriation c. Allotment d. Commitment 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 an authorization issued by the DBM to NGAs to incur obligations. It is also referred to as Obligational Authority. a. Appropriation b. Allotment c. Budget call d. Budget hearings 21. Disbursements by government entities are most commonly made through a. MDS Checks b. Cash c. Petty Cash Fund d. Credit Card

22. In government accounting, which of the following is a personal service? a. Meal allowance for overtime work b. Representation for visiting officers c. Salaries and wages d. Meal allowance for seminars and meetings 23. This document outlines the priority areas of government activity applicable to the budget year. a. Budget message b. Budget proposal c. Budget call d. Budget calendar 24. A budget, the basis of which are the objects of expenditure. a. Annual budget b. Special budget c. Line item budget d. Supplemental budget 25. PPSAS stands for a. Philippine Public Sector Accounting Standards b. Philippine Public Sector Accounting Systems c. Philippine Public Special Accounting Standards d. Philippine Public Special Accounting Systems 26. This is the point where government agencies obtain access to the government funds. a. SARO b. GARO c. Incurrence of obligations d. Disbursement authority 27. Government agencies are required to submit to COA and DBM a report showing the disbursements of the entity during the month of August, classified according to the type of disbursement authority. a. August 1 b. August 31 c. September 15 d. September 30 28. 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 29. Under responsibility accounting, a manager’s performance is evaluated. a. Based on all resources under his custody b. Only in terms of the costs, or other variables that he controls. c. On the basis of both controllable and non-controllable costs d. Only at year-end. 30. 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...