New Government Accounting System (NGAS)

1. Which department is responsible for the budget preparation of the national government?
A. Legislative Department C. Judicial Department
B. Executive Department D. Barangay
2. Which department is responsible for the approval of the budget prepared for the national
government?
A. Legislative Department C. Judicial Department
B. Executive Department D. Barangay
3. Budgetary accounts include?
A. Appropriation and Allotment C. Appropriation and Obligation
B. Allotment and obligation D. Appropriation, Allotment and obligation
4. The activities necessary to perform a major purpose for which a government entity is
established?
A. Revenues C. Program
B. Project D. Internal Control
5. Specific income accounts of the government include all the following except:
A. Taxes imposed on income C. Grants and Donation
B. Taxes on international trade D. Taxes imposed on properties
6. This is the services, products or benefits accruing to the public estimated in terms of
performance target?
A. Revenues C. Program
B. Project D. Expected Results
7. It is the authorization by the legislative body to make payments out of government funds under
specified conditions and purposes?
A. Allotment C. Obligation
B. Appropriation D. Budgeting
8. It is the amount committed or contracted by an administrative official for which the government
is liable?
A. Allotment C. Obligation
B. Appropriation D. Budgeting
9. It is the compound program covering a homogenous group of activities that result in the
accomplishment of an identifiable output?
A. Revenues C. Program
B. Project D. Expected Results
10. All are major classification of government expenses, except?
A. Maintenance and operating expenses C. Selling and administrative
B. Financial Expenses D. Personal Service

11. This government office is responsible for the design, preparation and approval of the accounting
system of the government agency?
A. Bureau of Internal Revenue C. Department of Budget and Management
B. Bureau of Treasury D. Commission on Audit
12. This government agency prescribed the standard government chart of accounts for the use of
the national and local government and the GOCC but not used by financial institutions?
C. Bureau of Internal Revenue C. Department of Budget and Management
D. Bureau of Treasury D. Commission on Audit
13. This government body authorizes the head of an agency to incur obligation within a specified
amount pursuant to an appropriation?
A. Bureau of Internal Revenue C. Department of Budget and Management
B. Bureau of Treasury D. Commission on Audit
14. This is the act by the DBM authorizing the incurrence of obligation by the agency within the
specified amount pursuant to appropriation?
A. Allotment C. Authorization
B. Appropriation D. Budgeting
15. What method shall be used in recoding the supplies and materials purchased for inventory
purposes under the NGAS?
A. Periodic System and Weighted average C. Perpetual and FIFO
B. Perpetual system and moving average D. Periodic and FIFO
16. A national budget designed wherein total estimated revenue is more than the total estimated
expenditure?
A. Supplemental Budget C. Special Budget
B. Line Item Budget D. Balanced Budget
17. What method is used in depreciating under NGAS?
A. Straight line without residual value C. Straight line with 20% residual value
B. Straight line with 10% residual value D. Accelerated method with 10% residual value
18. Which is not a local government fund?
A. Special education fund C. General Fund
B. Infrastructure Fund D. Countrywide development fund
19. In preparing the statement of income and expenses, the information needed shall be taken
directly from the year-end balance of?
A. Statement of financial position C. Chart of Accounts
B. Post-closing trial balance D. Pre-closing trial balance
20. The financial statement shall be prepared from the information taken directly from the year-end
post-closing trial balance?
A. Statement of financial position C. Statement of cash flow
B. Statement of income and expense D. Statement of government equity

21. Which of the following may be charged against a government official who disbursed
government funds beyond the approved budget and not compliance with the constitutional
provision that no money shall paid out of the National Treasury except in pursuance of an
appropriation law?
A. Qualified Theft C. Plunder
B. Graft and Corruption D. Technical malversation
22. Under the NGAS, a new coding structure and new chart of accounts shall be adopted with a
numbering system of?
A. Two digits C. four digits
B. Three digits D. Five digits
23. All of the following agency can apply NGAS, except for?
A. Department of Tourism C. Barangay
B. Department of finance D. City of Baguio

24. What is the entry to record the collection of P 10,000,000 corporate income taxes by the BIR in
its agency books?

A. Dr: Cash National Treasury 10,000,000

Cr: Income Tax Corporation 10,000,000
B. Memo Entry only
C. Dr: Cash Collecting Officer 10,000,000
Cr: Income Tax Corporation 10,000,000
D. None of the above
25. Under the NGAS, how frequent should the trial balance be prepared?
A. Daily C. Quarterly
B. Monthly D. Annually