Professional Documents
Culture Documents
SECTION: CBET-01-601P
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?
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).