Set C

AC 518
QUIZ – 2 TNCR

PART 1: MULTIPLE CHOICE. Choose and write the letter of the correct answer in your
answer sheet. NO ERASURES ALLOWED.

1. That portion of the National Budget that refers to the current operating expenses and capital outlay for
the operation of the programs/projects/activities of various government departments and agencies.
A. Financing program C. Balanced budget
B. Expenditure program D. Government fiscal policy

2. It is the authorization from the DBM to an agency to incur obligation up to a specified amount that
must be within the legislative appropriation.
A. Obligation B. Allotment C Appropriation D. Fund release

3. It is a document showing the disaggregation of agency expenditures into components like, among
others, by source of appropriation, by allotment class and by need of clearance.
A. Allotment Release Order C. Notice of Cash Allocation
B. Agency Budget Matrix D. National Budget System

4. Its main concern is the availability and use of funds for public services.
A. Commission on Audit C. Department of Finance
B. AGDB D. National Budgetary System

5. The following are expenditures by class provided for by the National Budget, EXCEPT
A. Personal Services C. Net Lending
B. Current Operating Expenses D. Capital Outlay

6. In what registry should the obligation for purchases of medicines be recorded?

A. RAOD-PS B. RAOD-MO C. RAOD-CO D. RAOD-FE

7. The following statements pertain to the preparation stage of the budget cycle. Find the correct order.
I. The agencies defend their proposed budgets before a technical panel of DBM.
II. At the beginning of the budget preparation year, the DBM issues the National Budget Call to all
agencies.
III. The departments and agencies are tasked to pair up with civil society organizations during the
preparation of their agency budget proposals.
IV. An Executive Review Board deliberates over the programs and projects of the agency as per the
submitted budget proposal.
A. II, III, I, IV B. I, IV, III, II C. II, III, IV, I D. II, I, III, IV

8. The following statements pertain to the execution stage of the budget cycle. Find the correct order.
I. DBM issues guidelines on the release and utilization of funds.
II. DBM prepares an Allotment Release Program to set a limit for allotments issued to an agency
and on the aggregate.
III. Allotments are either released by DBM to all agencies comprehensively through the ABM and
individually via SARO.
IV. DBM issues a disbursement authority in the form of NCAs and in special cases, the Non-Cash
Availment Authority (NCAA) and Cash Disbursement Ceiling (CDC).
A. II, I, III, IV B. I, III, II, IV C. I, II, III, IV D. II, III, I, IV

9. Agency ABC, a National Government Agency, received an ARO for MOOE from DBM amounting to
P5,000,000. Of the P4,275,000 total obligations of MOOE, only 80% was paid. The remaining 20% was
recognized as accounts payable. How much is the un-obligated balance that should be shown in the
Registry for MOOE?
A. 725,000 B. 825,000 C. 1,000,000 D. 855,000

10. Using the data in number 6, how much is the utilization rate of the obligation?
A. 20% B. 85.5% C. 68.4% D. 86%
11. The General Appropriation Act No. ____ for CY 2016:
A. 10573 B. 10694 C. 11964 D. 10964

12. The total appropriation for CY 2018:

A. P 3,676 Trillion B. P3.7 Billion C. P 3.606 Trillion D. P3,767 Billion

13. Expenditures of the government are classified by expense class. What expense class are salaries and
maintenance and other operating expenditures?
A. Capital Outlays C. Current Operating Expenditures
B. Personal Services D. Net Lending

14. The expected total revenues to be earned for 2018 which includes revenues from non-tax source and
proceeds from privatization.
A. 2.789 trillion B. 2.62 trillion C. 2.879 trillion D. 3.0 trillion

15. The following are 2018 budget dimensions EXCEPT

A. General Public Services C. Economic Affairs
B. Senior Citizens Services D. Public Order and Safety

In answering numbers 16-25, refer to the following choices:

A. The first statement is true but the second statement is false.

B. The first statement is false but the second statement is true.
C. Both statements are true.
D. Neither of the statements is true.

16. S1: Allotment refers to an authorization made by law or other legislative enactment, directing the payment
of goods and services out of government funds under specified conditions or for special purposes.
S2: Appropriation is the authorization issued by the DBM to the agency which allows it to incur obligations.
D
17. S1: Obligation accounting refers to the accounting practice, procedures and techniques for recording
obligations in the government.
S2: Obligation accounting provides the ceiling of the maximum extent by which an agency can incur
obligations or commit the resources of the government in the performance of its function.
C
18. S1: The NCA is the share of the Agency in the income of the National Government.
S2: The Notice of Cash Allocation received by the agency is net of withholding tax for Personal
Services and VAT and other form of taxes for Maintenance and Other Operating Expenses
and Capital Outlays to be withheld by the agency.
B
19. S1: The Budgetary accounts consist of appropriations, obligations and disbursements.
S2: Budgetary accounts are recorded in the Regular Agency’s books of accounts.
D
20. S1: Obligation is an act which binds an agency for the immediate payment of a sum of money from
the National Treasury.
S2: DBM approves the Agency Budget Matrix while the BTr receives and keeps government funds.
D
21. S1: During the budget preparation phase, DBM will assess and determines the allowable deficit the
Government can use.
S2: As member of DBCC, DOF responsibilities is resource allocation and management.
D
22. S1: Government funds and property shall be spent or used solely for public purposes.
S2: The more the government intends to raise the country’s level of development, the more
expenditure rise.
C
23. S1: Only selected agencies are reminded to use the Advice to Debit Account (ADA) to settle
government payables pursuant to general provision no.81 of 2018 GAA.
S2; Any available allotment for PS within the department may be utilized for the payment of
deficiencies in authorized personnel benefits pursuant to general provision no, 46 of 20a8 GAA.
B
24. S1: General Accounting Plan shows the overall accounting system of a government agency/unit.
S2: Budgeting is basically planning and controlling.
C
25. S1: Public infrastructures are already subjected to depreciation pursuant to PPSAS 31.
S2: The estimated residual value of the cost is at 5% in computing the depreciation.
C
26. S1: Program loans are foreign loans obtained to finance a specific project such as the building of
roads or bridges.
S2: Project loans are sourced from auction of Treasury bills, notes and bonds.
D
27. S1: All modifications within Capital Outlays, as appropriated in the 2018 GAA, may only be made
until June 30, 2018 except in cases where calamities occur.
S2: Any agency authorized by law to utilize income collections can be authorized also to avail of
excess income.
A
28. S1: Every 15th day of the following month, the Monthly Report on Appropriation, Allotments ,
Obligations and Disbursements should be submitted to DBM
S2: An initial comprehensive NCA issued covering the total current year’s operating cash
requirements excludes provision for prior year’s obligations.
B
29. SI: Budgeting establish in advance the objective or end result of the budget period.
S2: Zero-based budgeting is a situation wherein the budget is equal or less than expected revenues.
A
30. SI: The budget call contains the President explanation regarding the policy framework and
priorities in the budget.
S2: The President message contains budget parameters as set by DBCC and policy guidelines and
procedures in the preparation and submission of Agency Budget Proposals.
D
PART II. Multiple Choice. Choose the most appropriate answer. Write the letter of your
choice on your answer sheet. Please use CAPITAL letters only. No erasures allowed.

Phases of the budget process :

A - Budget Preparation
B - Budget Authorization
C - Budget Execution
D - Budget Accountability
Budget Processes
B._____ 1. Involves the legislative review and approval of the budget.
A_____ 2.. This budget phase happens between December to July of the prior FY.
C_____ 3.. This is where the people’s money is actually spent.
A_____ 4 The conduct of technical budget hearings after agencies submitted their proposal to DBM.
D_____ 5. The DBM monitors the efficiency of fund utilization and assess agency performance.
A_____ 6. The DBCC determines the overall expenditure levels, revenue projection, the deficit
levels and the financing plan.
A ____ 7. The DBM holds consultation with agencies on the allocation by sector and sub-sector
expenditure ceilings set by the DBCC.
B_____ 8. The Bicameral Conference Committee will discuss and harmonize the conflicting provisions
of the House and Senate Versions of the GAB..
C_____ 9. Covers the operational aspect of budgeting.
B_____ 10. The President and DBM then review the GAB and prepare a Veto Message, where
the budget items subjected to direct veto or conditional implementation are identified.
D_____ 11. Budget Accountability Reports are submitted by agencies on a monthly and quarterly
basis and identified their corresponding physical accomplishments.
D_____ 12. The DBM regularly reviews the financial and physical performance of agencies.
C_____ 13. Actual utilization of funds and physical accomplishments as indicated in the BARs
are evaluated against their targets.
A_____ 14. Budget hearings of the departments and agencies are conducted and scrutinize their
respective programs and projects.
C_____ 15. The budget phase that happens alongside the budget accountability.
PART III. Answer the following:

A. It’s been the policy of the government that the legislators will utilize their Priority Development
Assistance Funds (PDAF) for their constituents and liquidate their use by issuing a certification that
its use is for an intended purpose. What course of action you can suggest to avoid if not minimize
corruption in the utilization of PDAF.

B. Who are the head or Secretary of the following Agencies?

1. DOF Secretary -
2. COA Chairman
3. CB Governor
4. DBM Secretary
5. BIR Commissioner

C. Why does the government prepare a new budget every year?

D. Why does the government borrow from foreign sources?

E. Give the full word equivalent of the following acronyms?

1. RAOD-MO
2. BSP
3. DBCC
4. GOCC
5. ADA
6. RAPAL
7. RENREP