Muttipte Choice 1. It is the process of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and dispostion of govemment funds and property and interpreting the results thereof. a. Government auditing, b. Government budgeting ‘e, Government accounting d. National government 2. Which is not charged with the government accounting responsibility? a Commission on Audit b. Department of Budget and Management <. National Government Agencies Legislative Department 3. What is the role of the Bureau of Treasury in relation to government accounting responsibility? ; To receive and keep national funds and manage or centrol disbursements thereof, b. To design, prepare and approve the accounting systems of government agencies. ©. To keep the general accounts of the national government d To prepare the annual financial report of the national governmert, its instrumentalities and government-owned or controlled corporations. 4. What is the legal basis of the Commission on Audit in prescribing the New Govemment Accounting System manual? a. PD 1445 %b, Constitution of the Republic of the Philippines a ¢. COA Circular No. 2002-903 a. PD'1449 and the Constitution of the Republic of the Philippines 5. The goks of accounts are composed of the following: ‘a, Regular Agency books and National Government books. b. National Government books and books of original entry. ‘| Journals and general/subsidiary ledgers. d. Regular Agency books and books of original entry. a esa? The following are the systems followed in the New Government Accounting System, EXCEPT a. Commercial accounting b. Double-entrv bookkeeping ec. Responsibility accounting ‘4 Fund accounting ” What is the basis of accounting under the international point of view of current Government Accounting System? ‘a. Accrual and Cash basis b. Cash basis c. Accrual basis d. Strict Accrual According to COA Cir. No, 2013-002 dated January 30, 2013, the New Government Accounting System, effective January 1, 2014, uses a standard chart of accounts with a. Three digits b. Four digits c. Five digits Eight digits The New Government Accounting System must be comprehensive but flexible to ensure that the need of the users of information can be addressed in a way that these will be understood even by those, who have no technical knowledge of accountancy. These users include all EXCEPT a. Public managers b. Officials and employees of the agency c. Taxpayers 4 None of the above ‘s 10.The following are the objectives of the NGAS, which is NOT a. Simplify government accounting. b. Conform to International Accounting Standards. ‘ec. Comply with the requirements of International Monetary Board. d. Generate periodic and relevant financial reports for better monitoring or performance,11. Special purpose fund is a fund appropriated for purposes other than those provided in the regular funds of government agencies. Which of the followirig is a special purpose fund? “a Organizational adjustment fund b, Reimbursable fund c. Sinking fund d. General fund 12. Journals and ledgers are the books of accounts of the national government agencies. Which of the following journals shall be used under the new government accounting system? a. Journal of checks issued b. Journal and analysis of obligations ¢. Journal of bills rendered ‘dW. General Journal 13. The books of original entry shall be used to record, in time sequence, financial transactions and information presented in duly certified and approved accounting documents. What is the basis in recording the financial transactions in the journals? & Journal Entry Voucher b. Journal of Checks Issued c. Journal and Analysis of Obligations d. Journal of Bills Rendered 14. Regular Ageney (RA) books sha!! be used to record the receipt and utilization of Notice of Cash Allocation and other income/receipts, which the agencies are authorized to use and to deposit with Authorized Government Depository Bank and the naticnal treasury. Which of the following is NOT a Regular Agency book? a, General Journal b. General Ledger Cash Joumal d. Cash Disbursements Journal t 15, This is an authorization issued by the Department of Budget and Management to government agencies to withdraw cash from the National Treasury through the issuance of Modified Disbursement System checks or other authorized made of disbursements.a. Allotment b. MDS Checks ‘e, Notice of Cash Allocation d. Appropriation 16. Under the NGAS, serviceable assets no longer being used shall be reclassified as: a. Depreciated assets b, Obsolete Property Sy ‘Other Assets d. Property, plant and equipment 17. Under the NGAS, the Bureau of Treasury shall maintain the registry for control a monitoring of NCA released by DBM, this Registry is: Registry of Appropriations and allotments “4 Registry of special purpose fund appropriation c. Registry of allotments and Notice of Cash Allocation ‘a. Registry of Notice of Cash Allocation and Replenishment 18. The Department of Budget and Management, Department of Finance, Bureau of Treasury, and Commission on Audit are collectively responsible for the Unified Accounts Code Structure (UACS). Who is responsible for the validation and assignment of new codes for funding source, organization, sub-object codes for expenditure items? Department of Budget and Management b. Department of Finance c. Bureau of Treasury d. Commission on Audit 19. The Department of Budget and Management, Department of Finance, Bureau of Treasury, and Commission on Audit are collectively responsible for the Unified Aceounts Code Structure (UACS), Who is responsible for the consistency of account classification and coding structure with the Revised Chart of Accounts? a. Department of Budget and Management b. Department of Finance 2, Bureau of Treasury “d. Commission on Audit 20. The Department of Budget and Management, Department of Finance. Bureau of Treasury, and Commission on Audit are collectively responsible for the Unified Accounts Code Structure (UACS). Who is responsible for the consistency ofaccount classification and coding standards with the Govemment Finance Statistics? a, Department of Budget and Management “b. Department of Finance - Bureau of Treasury c. Commission on Audit d. All of them are responsible. 21. The Philppine Public Sector Accounting Standards (PPSAS)shall be applied to the following, except: a. National Government Agencies Gcvernment Business Enterprises ec. Lozal Government Units d. Gevernment-Owned and/or Controlled CorporationsMuttipie Choice 1, It is the system of prescribimg the procedures for recording appropriations, allotments and obligations. a, Fund accounting : “b. Budgetary accounting c. Obligation accounting d. Government accounting 2. Its main concer is the availability and use of funds for public services. a. Commission on Audit b. Department of Finance c. Bureau of Treasury National Budgetary System © 3. It isa statement of estimated receipts and estimated expenses of the government, which serves as basis for a General Appropriation Act. a. Statement of financial position b, Statement of operations "ve, National government budget d. Local government budget 4. Which department prepares the national budget, which serves as the basis of the General Appropriation Act? a Executive Department b. Legislative Department c. Judiciary Department d. National Government Agencies/units 5. It is the legislative consideration, review and approval of the national budget. a. Preparation ‘b, Authorization ¢.” Execution d. Accountability 6. a. b. It is the implementation of the national budget by different departments and release of allotments. Budget preparation Budget authorization“es. Budget execution d. Budget accountability 7. It denotes the responsibility to others that one or more persons have for their actions and behavior, a. Preparation Accountability c. Authorization d. Execution 8. As specifically provided for in the New Constitution, no money shall be paid out of the National Treasury EXCEPT in the pursuance of a. Budget b. President's executive order c. Fund MW Appropriation 9. It is the legislative authorization to make payments out of government funds under specified conditions and specific purposes. ‘x Appropriation b. Allotment A ¢, Obligation d. Budgeting 10. 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. a. Obligation b. Appropriation ‘. Allotment d. Fund release IL. 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12. Itis the functions and activities necessary for the performance of a major purpose for which a government entity is established. b c. d. Program Project Resources Internal contro! 13. The journal entry to be made in the books of government agencies‘units upon receipt of Notice of Cash Allocation is a b. 2 p Cash — MDS, Regular Subsidy from National Govemment Cash in Bank — Local Currency, Current Account Subsidy from National Government Cash in Bank ~ Local Currency, Savings Account Subsidy from National Government Cash in Bank —Local Currency, Time Deposit Subsidy from National Government 14, Te control the allotments and obligations of the four classes of allotments, the following registries shall be maintained by government agencies/units oe & d. RAOCO, RAOPS, RAOMO, and RAOFE. RAOCO, RAOPS, RAOMO, and RANCA. RAOCO, RAOPS, RAOMO, and RPI RAOCO, RAOPS, RAOFE, and RPI 15. tis the formal document issued by the Department of Budget and Management to the head of the agency containing the authorization, conditions and amount of allocation. b. ce d. Special Allotment Release Order Allotment and Obligation Slip Notice of Cash Allocation Registry of Allotment and Obligation 16. In government accounting, which of the following is a Personnel service? b. t Telephone charge Rent Meal allowance for overtime work Salaries and wagesIn government accounting, which of the following is.a capital outlay? a. Salaries and wages b. Repairs and maintenance a. Land improvement d. Merchandise inyentory . It is the annual documents required at the onset of the budget execution phase, which contain the agencies’ targets and plans for the current year. & Agency Budget Matrix (ABM) Annual Cash Program (ACP) Budget Execution Documents (BEDs) Budget Accountability Report (BARS) aw o By It is a budget execution document that serves as an overall plan of the government agency encompassing the targeted outputs and estimated obligations broken down by quarter. Physical and Financial Plan (PFP) Monthly Cash Program (MCP) Estimate of Monthly Income List not yet due and demandable obligations Re . It is a component of Budget Accountability Reports (BARs) that should be reported on monthly basis. a. Monthly Cash Program b, List not yet due and demandable obligations c. Estimate of monthly income Statement of allotments, obligations and balances . It is'a disbursement authority representing Modified Disbursement Checks issued and direct payments to external creditors per validated advice to debit account in the list of due and demandable accounts payable. a. Tax Remittance Advice (TRA) “pb. Notice of Cash Allocation (NCA) c. Non-Cash Availment Authority (NCAA) d. Cash disbursement Ceiling (CDC)22. Government agencies are required to submit to the Department of Budget and ‘Management their plans, programs and targets for the year using the Budget Execution Documents (BEDs)on or before a January 1 b. January 31 ‘a, April 15 d= December 31 23. Inorder to provide agencies with sufficient time to implement projects/sctivities covered by realignment, request for realignment of released allotments under the prior year budget shall be requested until a January | of the current year b. April 1 of the current year Nq__ June 30 of the current year d” December 31 of the current year 24. Effective January 2009, the following. modifications in the Notice of Cash Allocation (NCA) release shall be adopted, EXCEPT a. Notice of Cash Allocations to cover regular requirements of agencies shall be comprehensively released with a breakdown of the menthly NCA requirements by operating unit. b. Additional NCAs shall be released corresponding to the SAROs to be issued to the operating units on the basis of the separate Monthly Cash Program submitted by the operating units. *«, All NCAs programmed and credited for the month whether part of the comprehensive release or constituting the additional NCA release, shall, be valid only until the lest working day of the fiscal year. d. Any unutilized NCA corresponding to the book balance, met of ‘outstanding checks, shall automatically lapse at the end of that moath. 25. All Special Allotment Release Orders (SAROs) issued chargeable against General Appropriation Act (GAA) of a Fiscal Year (FY) as re-enacted shall be valid for obligation while the aew GAA is not yet in effect. What is the effective date of the new GAA? a. Immediately after the approval by Congress. b., Immediately after the approval by the President of the Philippines.Pe ee c, Fifteen days after the approval by Congress. “A, Fifteen days after the approval by the President of the Philippines. 26. A budget, the basis of which are the objects of expenditure. a. Annual budget b. Special budget Line-item budget d. Supplemental budget 27. A budget of special nature and generally submitted in special forms on account that itemizations are not adequately provided in the Appropriations Act or that the amount are not at all included in the Appropriations Act a. Annual budget “b, Special budget c. Line-item budget d. Supplemental budget 28. This document outlines the priority areas of government activity applicable to the budget year. a. Budget Message b. Budget Proposal Se, Budget Call d. Budget Calendar 29. In government accounting, which of the following is Maintenance and Other Operating Expenses (MOOE): a. Night Shift Differential “t, Janitorial Services c¢, Honorarium d. Salaries and wages98 __ Chapter 3 — The Revised Chart of Accouras Multiple Choice 1, One of the key elements of Unified Accounts Codes Structure (UACS) is the Funding Source Codes. Which of the following is NOT pari of Funding Source Codes? Sw. Revised Chan of Accounts b. Financing Source c. Authorization d. Fund Category 2. Location Codes is a nine-digit code to reflect different arca following the Philippine Standard Geographic Code prescribed by the National Statistical Coordination Board. Which of the following area is NOT covered by the Location Codes under UACS? a Province b. Municipality ¢. Barangay x, Street 3. Organization Codes is one of the key elements of Unified Accounts Codes Structure (UACS). Which of the following is Not one of those reflected by this clement? a. Department b. Agency c. Operating Unit Government-Owned and Controlled Corporation 4, For purposes of Unified Accounts Codes Structure (UACS), Constitutional Offices, the Judiciary and the Legislature are categorized as: ge Comer tet cpciatine aii b. Sub-agency c. Agency “d. Department It is an integrated group of uctivitics that contributes to an agency or department's continuing objective. a. Major Final Output (MFO) “b. Progratn ©. Activity d, ProjectChapter 3 - The Revised Chart af Accounts 99 6 ¥9, Itrepresents the accounts classification as to assets, liabi ies, equity, income and expenses. a Code “S. Account group ¢ Major secount group 4. Sub-major account group It represents classification within account group, e.g. for asset major account: cash and each equivalent, ete. ‘y Major account group 4. Sub-major account group % General ledger accounts 4. General ledger contra accounts Which of the following is a sub-major account group in a Revised Chart of Accounts? ‘Cash on hand t. Cash and cash equivalent & Asset a Petty cash Which of the following is INTER-AGENCY receivable in the Revised Chart of Ascounts? & Due from joint venture b. Due from Non-government Organization/People's Organization ‘4 Due from Bureaus 4 Due from Central Office . Which of the following is INTRA-AGENCY receivable in the Revised Chart of Accounts? ‘A, Due from Operating Units. b. Other Receivables ¢ Due from Government-Owned and Controlled Corporations 4. Due from Local Government Units - Which of the following is NOT Personnel Services? "s_ Labor and wages b. Salaries and waxes ~ Regular Pension benefits * 4 Clothing/Uniform allowanceJoa Chapter 3~The Revised Chart af Accounts 12. W refers to any various units of the government, including an “olfice, instrumentality or GOCC that may not approximate the size of a departmem, but which nonetheless performs tasks that are equally important and whose area of concern is nationwide in scape. a. Central Office . b. Operating Unit ‘e. _ Agency 4. Bureau 13. According to the Revised Chart of Accounts per COA Cireular2013-002, which F the following is an Account Group? ‘ Assets account . Investments account Cash in Bank - Local Curency ‘Treasury Bills are 14, According to the Revised Chart of Accounts per COA Circular 2013-002, which of the following is.a Major Account Group? Liabilities account Cash and eash equivalent Loans and receivables account Sinking fund 2 oe 1S. According to the Revised Chart of Accounts per COA Circular 2013-002, which ‘of the following is a Sub-Majer Account Group? a, Financial assets held for trading b. Allowance for impairment — Investment in treasury bonds Financial assets at fair valve through surplus or deficit dg. InvestmentChapter 4 — Accounting for Disbursements and Relaied Transactions 133 Multiple Choice 1, ‘This account is used to record in the Regular Agency (RA) books 'the receipt of Notice of Cash Allocation for operational sequitements from the Department of Budget and Management and the conesponding withdrawal of national government agencies. 3 a. Cash—MDS, Special Account b. Cash — MDS, Regular c. Cash in Bank — Local Currency, Savings Account 4. Cash in Bank - Local Currency, Current Account 2, Statement I: AM checks issued including cancelled checks shall be recorded chronologically in the Check Disbursements Record, Statement II: All checks issued shall be inchided in the Report of Checks Issued. a, Statement I and Il are true. b, Statement I is false; statement IT is true, ¢, Statement | is true; statement II is false. d. Statement I and Il are false. 3. Allldisbursements shall be supported by a. Disbursement voucher b. Disbursement voucher and its supporting dacuments. ¢. Disburscment voucher duly certified and approved and its supporting documents. d, Checks. 4, Ibis the method used in costing inventory. a. Moving average method b. Weighted average method ¢. Simple average method d. Last in, first out 5. This is the method of depreciation used by the national government agencies. a, Straight line method b. Sum of years digits’ method s, Output method d. Double declining balance method134 Chapter 4 — Accounting for Disbursements and Related Transactions 6. It is the basis for the preparation of Journal Entry Voucher for the final recording in the cash disbursement joumal, a b. © d. Report of disbursement Cash disbursement record Check disbursement journal ' Cash journal 7. ‘These are the checks issued by government agencies chargeable against the agency checking-account with government servicing banks. a, Post-dated checks b. Commercial checks c. Modified disbursement system checks d. Treasury werrant checks 8, Petty cash fund being maintained by government agencies shall be maintained under a. Imprest system b. Fluctuating fund system c. Either imprest or fluctuating fund system d. Neither imprest nor fluctuating fund system 9. tis the method used by government agencies in recording disbursements when expenditures apply to more than just the accounting period, a b, °, d. Asset method Perpetual inventory method Periodic inventory method Expense method 10, During the construction period of these assets, the cast for the canstruction shall be charged to construction in progress account and the seme shall be credited upon completion a. b. 5 4, ‘Leasehold improvements ~ land Land improvements Other leaschold improvements. Public infrastructuresChapler 4 — Accounting for Disbursements and Releted Transactions 135. LI, This gecount is used to record completeditumned-over public, infrastructure projects and those ~rojects, which were discontinued by the government, a. Construction in progress b. Construction in progress — Agency assets Public Infrastructures/Infrastructure Assets d. Registry of public infrastructures 12, What -is the vesidual value assigned to depreciable assets under the New Government Accounting System? a. Ten percent of its cost b. No residual value ce. P1,000.00 d. None of these Problems: ‘The Department of Budget and Management's payroll for the month of January 2012, comprises the following: salaries and wages — regular pay P480,000, PERA 20,000: and personal as follows: withholding taxes P/5,000, GSIS Life and Retirement Premium P45,000, PHILHEALTH Premium P2,000, PAG-IBIG premium P8,000. Accordingly, payday is on the 16" of the month and 30” of the same month anid amount of P430,000 was advanced by the agency”s disbursing officer Moreover, the following were the Government shares: GSIS. Life and Retirement Premiums P60,000, Employees compensation contribution P2,000, PAGABIG Premiums P4,000, PHIL HEALTH Premiums P2,000. Required: Foregoing considered, prepare all necessary entries assuming remittances were made to respective agencies at the end of January 31. 2012. Compute the following: Net Pay, Total Personal Share, Government Share and total remittances.Chapter jecounting for Income. Collections and Related Transzctions 153 Muhiple Choice L. It is the account used to record collections and deposits made by collecting officers/postmasters/telegraph operators to the national treasury. a. Cash —Colleeting Officers b. Cash — Disbursing Officers ©. Both “a” and “b” d. Cash im Bank — Local Currency, Current Account 2. I is the account used to record the amount of Notice of Cash Allocation received, Tax Remittance Advice issued, tax exemption granted by the National Government and payment of national government agencies" liabilities by foreign lending/donor institutions. a. Subsidy from national government. b. Subsidy from central office. ¢. Subsidy from regional office/staff bureau. d. Subsidy from other local government units, It is the account used to record all income derived from business operations of government agencies engaged in trade, business and commerce. a. Miscellaneous income b. Other business income c. Sales revenue d. Income from markets 4, It is the account used to record taxes and charges collected on account of special privilege or right conferred to an individual or corporation by the state, through the legislature, to exercise certain powers and privileges such as the power to operate public utilities. a, Business tax b. Income tx c. Franchise tax d. Professional tax154. Chapter §~ Accounting for tncome, Collections and Related Transactions §. ‘This account is used to record taxes imposed on gains realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacta de recto sales and other forms of conditional sale. a, Business tax b. Income tax c. Estate tax 4. Capital gains tax 6 Itisa method of accounting for income that shall be used by national government agencies when income is realized during the accounting petiod regardless of cash receipt a. Cash basis b. Modified accrual method ¢. Accrual method d. Modified cash basis +. Whichof the following methods of accounting income is nat used by government agencies? a. Cash basis b. Mi ied cash basis ¢. Accrual method 4 Modified accrual method Which of the following is not a general procedure in the collection of revenue from domestic sources? a. The bureau of treasury records the collections in its books. b. The bureau of treasury records the receipt in its books in peso equivalent. ip c. The bureau of treasury replenishes its Modified Disbursement System account/s with the bank for checks negotiated. d The national government agency collects the revenue of the government from whatever source, ithChapter 5 ~ Accounting for Income, Collections and Related Transactions 155 is a type of collection where government agencies are required to remit to the al treasury and the same shall be recorded in the National Government a. Income fram sale oP equipment Authority with limitations s. With authority to use 4. Without authority: to use 10, Which of the following is classified as other non-operating income? a. Sale of garnished/confiscated/abandoned/seized goods and properties b. Share from national wealth. c. Income from grants and donations in cash. d. Income from grants and donations in kind.180 ‘Chapter 6 - Miscelieneous Transactions 6. This account is used to record the amount due from officers and employees and those outside of government agencies for audit disallowances/charges, which may become final and executory, a Other receivables b. Due from officers and employees ¢. Receivables — Disallowances/charges d, Accounts receivable 7. An accountable disbursing officer request for relief from accountability arising from shortage of fuud. However, the request was denied and the disbursing officer settled his accountability and was issued receipt for the settlement. The journal entry to record receipt of settlement in the books of government agency is a. Cash—Collecting Officer Miscellaneous income + b. Cash — Collecting Officer Accounts receivable c. Cash — Collecting Officer Due from Officers and Fmplayees 4. Cash ~ Collecting Officer Receivables — Disallowances/charges R Performance honds sre required by the agency from contraztorssuppliers to ensure their performance of contracts, which may be in form of cash or certified check or surety, What is the journal entry to record receipt of performance bonds in form of surety using the Revised Chart of Accounts? a, Guaranty Deposits Performance hands payable b. Cash — collecting officer Guarantee deposits payable ¢. Guarantee deposits Guaranty/Security Deposits Payable d. Pecfoumance Lunds payable Guarantee deposits180 ‘Chapter 6 - Miscelieneous Transactions 6. This account is used to record the amount due from officers and employees and those outside of government agencies for audit disallowances/charges, which may become final and executory, a Other receivables b. Due from officers and employees ¢. Receivables — Disallowances/charges d, Accounts receivable 7. An accountable disbursing officer request for relief from accountability arising from shortage of fuud. However, the request was denied and the disbursing officer settled his accountability and was issued receipt for the settlement. The journal entry to record receipt of settlement in the books of government agency is a. Cash—Collecting Officer Miscellaneous income + b. Cash — Collecting Officer Accounts receivable c. Cash — Collecting Officer Due from Officers and Fmplayees 4. Cash ~ Collecting Officer Receivables — Disallowances/charges R Performance honds sre required by the agency from contraztorssuppliers to ensure their performance of contracts, which may be in form of cash or certified check or surety, What is the journal entry to record receipt of performance bonds in form of surety using the Revised Chart of Accounts? a, Guaranty Deposits Performance hands payable b. Cash — collecting officer Guarantee deposits payable ¢. Guarantee deposits Guaranty/Security Deposits Payable d. Pecfoumance Lunds payable Guarantee depositsChapter 6 — Miscellaneous Transactions 181 9. What is the joutnal eniry to record remittance to the National Treasury of travel expense refund in the books of government agency, if the cash advance for travel was granted during the current year? Cash — National Treasury, MDS Cash Collecting Officer b. Subsidy from National Government Cash - Collecting Officer ¢. Cash— Disbursing Officer Cash - Collecting Officer gd. Due from officers and employees 7 Cash —Colleeting Officer 10, Cash advances are usually granied to the Regular Disbursing Officers for salaries and wages and to officers and employees for official travel. Assuming cash advances for salaries and wages that were granted in 2012 resulted to refund of P15,000, what would be the journal entry to be recorded in the books of the agency to record remittance to the Bureau of Treasury in 2013? 2, Subsidy income from National Government 13,000 Cash - Collecting Officer 15,000 b. Subsidy income from National Goverment 15,000 Cash - Deposit 15,000 ¢. Government Equity 15,000 Cash - Colleeting Oftcer 15,000 d. Prior Year's Adjustment 15,000 Cash - Deposit 1,000 JI, This account is used to record the cumulative results of normal and continuous operations of an agency including prior period adjustmenis, effects of changes in accounting policy and other capital adjustments. a. Prior Year's Adjustment b. Income and Expense Summary ; Government Equity 4, Revaluation SurplusChapter 7-= Trial Balance, Firanctal Reports and Staements 23 Multiple Choice 1 ‘The set of financial statements to be genersted from the new accounting system are 1. Balance Sheet, Statement of Government Equity, Statement of Income and Expenses, Statement of Cash Flows, and Note to Financial Statements. b. Balance Sheet, Statement of Income and Expenses, and Notes to Financial Statements. c. Balance Sheet, Statement of Income and Expenses, and Statement of Cash Flows. d. Balance Sheet, Statement of Income and Expenses, Statement of Cash Flows, and Notes to Financial Statements. tis the financial statement prepared directly from the post-closing trial balance. Statement of Income and Expenses Balance Shect a Yes No. b No ‘Yes . Yes ves r Ne No ‘This account reflects the net result of Income and expense summary and prior yerr’s adjustments accounts prior to closing to government equity. a. Retained Operating Surplus b. Income and Expense Summary ¢. Both “a” and“b 4. Prior Year's Adjustments ‘Which of the following is net a purpose for the preparation of trial balance? 4. To prove the matheinatical equality of the debits and credits after posting. b. To serve as basis for the preparation of the financial statements. ©. To prove that no errors of any kind have been made in the aecounts during the accounting period. 4. To uncover errors in joumalizing and posting.224 Chapter ? —Trial Balance. Financial Reports and Statements Under the New Government Accounting System, Financial Reporting System includes the a. Preparation and submission of financial statements. b. Preparation of ABM, monitoring and recording of allotments received by the agency from DBM. e ©. Reporting income’cotlections, deposits of collections with AGDB. d. Preparation and processing of disbursement voucher, and liquidation of obligations. 6. Adjusting entries invalve a. Only real accounts b. Only nominal accounts ce. Only equity accounts d. Atleast one real and one nominal account 7. Why are adjusting entries necessary? a. ‘Transactions take place aver more than one accounting period. b. Tomake debits equal credits. ¢. Toclose nominal accounts at year-end, d. To correct erroneous balances in accounts, 8. Closing entries @. ate optional steps. b, Affect only balance shect accounts. ©. Permit the government agency to analyze routine and repetitive transactions the same way all the time. d. Remove the balances from the agency"s temporary accounts, 8, The following are the financial statements generally prepared in the national government, EXCcPT a, Statement of Cash Flows b. Balance Sheet . Statement of Govemment Equity d, Statement of management Responsibility25 10. It serves as the covering letter in transmitting the agency's financial statements to the Commission on Audit, Department of Budget and Management, and other oversight agencies and parties, a. Pre-closing trial balance b. Posteclosiag trial balance ¢. Statement of management responsibility d, Notes to financial statements . This financial statement shall be prepared from information taken directly from the year-end post-closing trial balance. a, Balance sheet b. Statement of income and expenses e a Statement of government equity Statement of cash flows 12. This financial statement shall be prepared from information taken directly from pre-closing trial balance. 4. Balanee sheet b. Statement of income and expenses ¢, Statement of government equity 4, Statement of cash flows 13. This is a method used in the preparation of the Statement of Cash Flows in the New Government Accounting System, that shows the agency’s net cash flow from all its activities calculated by adding the individual cash inflows and then deducting the individual cash outflows. 4. Direct method b. Indirect method ¢. Balance sheet approach d. Income statement approach 14, These are financial statements that are required to be prepared at any given period or at a financial reporting period without closing the books of accounts. 2. Pre-closing trial balance b, Statement of management responsibility ¢, Interim reports 4. Notes to financial statements26 15. Chapter 7 Trial Balance, Financial Reparts and Storemenes Balance sheet is a formal.statement, which shows the financial condition of the agency as of a cerain date, It shall be suppored with the following schedules, EXCEPT a. Schedule of Accounts Receivable b, Schedule of Accounts Payable ¢. Schedule of Public Infrastructures d. Schedule of Notes to Financial Statements . The interim financial statements shall be prepared employing the same accounting principles used for annual reporting. It shall be submitted quarterly with the following, EXCEPT a. Notes to financial statements h. Balance sheet Statement of cash flows d, Worksheet288 Chapter 8 — Accounting for Local Government Units Multipte Choice: 1. Under the old and the new manual, the following funds shall be maintained 2. General Fund, 20% Development Fund, 5% Calamity Fund, b. Trust Fund, 20% Investment Fund. General Fund. ¢. Investment Fund, Development Fund. Calamity Fund. d. General Fund, Trust Fund, Special Education Fund 2. This isthe basis of recording the transactions in the journals. a, Registry b, Allotment and Obligation Slip (ALOBS) c. Journal Entry Voucher d. Subsidiary Ledger 3. This is the journal used in recording all collections and deposits reported. a, Report of collections and deposits b, Cash receipt jounal ¢. General journal a. Cash book 4. What office in the iocal government unit shall maintain the journals? a. Accounting office b. Office of the treasurer ©. Uttice of the Budget officer d, Office of the treasurer and accountant 5. What office in the locai government unit shall maintain the eash records? 1 a. Accounting office b. Oiffice of the treasurer €. Office of the Budget officer d. Office of the treasurer and accountant 6. This journal is used to record check payments male by the local treasurer/eashier. a, Cash receipt journal b. Cash disburserrents journal ¢. Check disbursements journal d. Cash and check disbursements journalChapter 8 ~ Accounting for Local Government Unit: ae 7. This is the accounting record, which shall be maintained to monitor accounts/assets not recorded in the books of accounts. a. Registry ' b, Subsidiary ledger ©. Special account d. Registry and subsidisry ledger 8. This is the report used to settle cash advances for travel and for other purposes except those cash advances granted to regular/special disbursing afficer. a. Liquidation report b. Report of disbursements c. Liquidation report and report of disbursements a. Report of check issued 9. This form is used to request supplies and materials that are carried in stock. a. Purchase request b. Requisition and Issue Slip s. Purchase order d. Allotment and Obligation Slip 10. Grants and donations coming from foreim funding institutions, other levels of government and private institutions/individuals for specific projects/purpose shall accrue to this fund. a. General Fund b. Special Education Fund ¢. Trust Fund d. Special Fund 11. To which account the bslance of prior yeer's adjustment is closed at the end of the year? a. Government equity b. Retained operating surplus . Project equity d. Income and expense summary290 Chapter.8— Accounting for Local Gaverament Units 12, When should the local government unit recognize its share from Internal Revenue Collections as part of its income? b. Upon receipt of Notice of Funding Checks issued from the Department of Budget and Management d, At the end of the year 13. For the disbursements of local funds, whose approval is required? a. Local chief executive b.. The division head and the local chief executive cc. The administrator and the local chiefexecutive d. The local chisf executive, except for regularly recurring administrative expenses where the authority to approve may be delegated. 14. The local chief executive shall require periodic physical inventory of supplies ar erty every sentester, while physical count of property, plant and equipment bby type shall be mide annually and reported on the Report oa the Physical Count of Property, Plant znd Equipment and shall he submitted to the auditor a . Not later than January 31 and July 31 of each year d. Not later than December 31 of cach year, 15. In 2014, the municipal treasurer of Dinalupihan, Bataan prepared Purchase Request and ALO3S for the equipment needed by the Office of the Municipal Engineer in the anount of PS00,000. Within the specified period, the item was delivered, inspected, and accepted. What is the journal entry to record the transfer of the said equipment to the Office of the Municipal Engineer? a. Office of the Municipal Engineer 500,000 Property, plant and equipment 500,000 b, Property, plant and equipment—Municipal Engineer 500,000 Property, plant and equipment 500,000 Memo entry inRAOCO only . Recognized only by using the Acknowledgment Receipt for the equipment.18 Chapter 9 ~ The New Barangay Accounting System Multiple Choice 1. Supplies and materials and small items with serviceable life of more than one year, like stapler, puncher, mechanical tools, etc, shall be charged to a. Expense b. Deferred charge ©. Property, plant and equipment 4, Tools 2, The accounting methed adopted for the new barangay accounting system is a. Accrual method b. Modified accrual method c. Cash method Wd. Strict accrual method 3. Under the new barangay accounting system, cash advance for payment of personnel services shall be accounted as a. Cash advance - disbursing officer b. Advances to oftcers and employees c. Payroll fund d. Trust fund 4, Recording of barangay transactions shall be recorded in the books through Journal Entry Voucher by a. Barangay Treasurer b. Barangay Record Keeper ¢. City/municipal accountant d. Budget officer 5. What is the basis of the approved appropriations for barangays? a, Agency Budgel Matrix (ABM) b, General Appropriation Act (GAA) ¢. General Appropriation Ordinance (GAO) d. General Allotment Release Order (GARO) 6. Which of the following is a component of the General Fund of barangays? a. Personnel service b. 20% Development Fund c. Calamity Fund d, Sangguniang Kebataan FundChapter 9— The New Barangay Accounting System 39 7. Under the new barangay accounting system, the following appropriation shall be valid until fully spent or until the planned activity is completed, EXCEPT a. Capital outlay 20% Development Fund 8 Which of the following is an Authorized Government Depository Bank (AGDB> recognized under the new barangay accounting system? a. Veterans Bank of the Philippines b. Philippine National Bank c. United Coconut Planters Bank d. Rural Bank of Dinalupihan 9, It is the allotment released by Local Government Units or Department of Budget and Management to barangays. a, Internal Revenue Allotment (IRA) b, Barangay Social Fund c. Income from grants and donations 4. Subsidy from other LGU 10, The petty cash fund of barangays shall be maintained using the imprest system . ‘The amount of petty cash fund shall be determined by the Sangguniang Barangay but not to exceed a PI,000 b, P2,000 c. 75% of the funds available d. 20% of the funds available 11, This barangey official shall act as the property officer of barangay. ‘a. Punong Barangay b, Barangay Record Keeper ¢, Barangay Treasurer d. Kagawad720 Chapter 9— The New Barangay Accounting Systent 12. Who will consolidgte the Statement of Appropriation, Commitments and Balances of each barangay for the five funds, such as: General Fund, 20% Development Fund, Calamity Fund, Sangguniang Kabataan Fund, and Gender and Development Funl? a. Barangay Treasurer b. Barangay Record Keeper ¢. City/municipal sccountant d, Budget officer