NAME: RENELLE HABAC

SECTION: CBET-01-601P

REVENUE AND OTHER RECEIPTS

1. What government receipts spark your interest? Why?

As we are in the College of Business and Entrepreneurial Technology, the topics

that triggers my interest is the Services and Business Income which is under the
Revenue from exchange transactions that are derived from the sales of goods or
provisions of services to third parties or to other NGAs. In service income, it includes
fees such as permit fees, registration fees and plates, legal fees, processing fees and
other service income; while in business income it includes the school fees, examination
fees, training/seminar fees, hospital fees and others business income. As we can see
that taxes are not enough sources of funds for the government budget which a primary
reason why we are having such big amount of loans from other countries and even
locally. Which is the reason why this service and business income sparks my interest in
the government receipts.

As we can see, when goods or services are exchange or swapped for goods or
services which are of a similar nature and value, the exchange is not regarded as a
transaction which generates revenue. However, when goods are sold or services are
rendered in exchange for dissimilar goods or services, the exchange is regarded as a
transaction which generated revenue. This includes fees that the government might use
as a source of funds for the budget that the Philippines are using for its project such as
infrastructures and facilities that the public might use. How interesting, isn’t it?

2. What is your take away from this chapter? Why?

My take way in this chapter is that, there are a lot of sources of funds our
government has and not only the tax alone. It is interesting on how the sources are
being maintained and use in a proper or appropriate manner of spending. Those
different receipts are presented by the use of different Financial Statement and were
properly use by different government agencies. The accrual basis of accounting are
also used but there are still instances that we are using cash basis accounting (or semi-
accrual) because instead on accounting allowance of doubtful account, we will just
record it when collected such example is other tax revenue (Revenue Property Tax).