PART 1. TRUE or FALSE. Write the word TRUE or FALSE on your answer sheet.

NO ERASURES ALLOWED.

T_____1. Assertions are implied representation by management that is reflected in the financial records
that they are
claiming to have complied with the accountability requirement of the state policy.
T_____2. Effectiveness is concerned with the relationship between the outputs and the goals of the
agency.
T_____3. Separate registries shall be maintained to monitor the budgetary accounts of the government.
F_____4. Subsidy from National Government account is debited when Notice of Cash Allocation is
received by
the agency.
F_____5. Under the Construction Period theory in the construction of assets, Bonus paid to the contractor
for
completing the work ahead of time shall be deducted from the total cost of the project.
T_____6. Liability shall be recognized at the time goods and services are accepted and received by the
agency.
F_____7. Serviceable assets no longer used in operation are still subject for depreciation but shall be
reclassified to
“Other Assets” account.
T_____8. All lawful expenditures and obligations incurred during the year shall be taken up as accounts
of that year.
F_____9. For government accounting, only one set of books is maintained, the National Government bks.
F_____10. COA prescribes the forms, schedules of submission and other component of reporting system
needed
to accomplish and submit the required information.
F_____11. Notice of Cash Allocation is issued by COA.
T_____12. Appropriation is the basis of DBM in issuing Allotment Release Order (ARO).
F_____13. Government agencies can start implementing their projects/programs once they received the
Notice of
Cash Allocation from DBM.
F_____14. The modified accrual concept recognized expenses when they are paid.
F_____15. All accountants are accountable officers.
F_____16. Government Owned or Controlled Corporations includes state colleges and universities.
F_____17. An agency can incur obligation in excess of the amount allotted.
T_____18. Public office is a public trust.
F_____19. Accounting responsibility is entrusted to the chief accountant of the agency.
F____20. The Authorized Government Depository Banks are the principal custodian of all national
government funds.