PRE8 – MIDTERM EXAM
1.  To recognize receipt of NCA for Regular Agency
Fund will include a debit to
Cash-Modified Disbursement System (MDS),
Regular
2. All of the following, except one, are in charged
with government accounting responsibility
Philippine Institute of Certified Public
Accountants
3.  Remittance of salary deductions
Retirement and Life Insurance
Premium P 3,300
Pag-IBIG Contributions 500
PhilHealth Contributions 300
GSIS-Salary Loan 200
Employees' Association 100
The entry to record above transactions would
include a credit to?
Cash-Modified Disbursement System (MDS),
Regular
4.  Receipts of refunds from officers, employees
and suppliers/creditors resulting from
overpayment of expenses would include an
entry, except
Credit to Cash-Collecting Officers
5. Expenditures to acquire long-term assets are
most likely classified as
Capital Outlay
6.  Which of the following results to the
recognition, in the books of accounts, of
expenses classified as Personnel Services?
Liquidation of Payroll Fund
7. Which of the following has the exclusive
authority to promulgate accounting and
auditing rules and regulations in the
government
Commission on Audit
8. Which of the following government agencies
will most likely be able to obtain a
disbursement authority in the form of Cash
Disbursement Ceiling?
DFA
9. The entry in the books of a government agency
with foreign service post to record the receipt
of disbursement authority called the Cash
Disbursement Ceiling (CDC) includes a?
Credit to Subsidy from National Government
10.  A government agency made disbursements for
the travelling expenses of its personnel. These
expenditures are most likely classified as
Maintenance and Other Operating Expenses
11. According to the Revised Chart of Accounts
(RCA) issued by the COA, the Subsidy from
National Government account is a (an)
Revenue Account
12. It is a type of fund held by a government entity
that is designated for special purpose
Special Fund
13. Receipt of Subsidy/Assistance from other NGAs,
LGUs, GOCCs and Other Funds. The Collecting
Officer shall issue OR upon receipt of cash
subsidy/assistance and would include a
Credit to Assistance from GOCCs
14.  According to GAM for NGAs, disbursements for
salaries and wages shall be supported by
Payroll
15.  According to the GAM for NGAs, which of the
following may never give rise to revenue for a
government entity?
Services in kind
16. What is the legal basis of the COA in
promulgating the GAM for NGAs?
The Philippine Constitution
 PRE8 – MIDTERM EXAM
17.  It is a government agency that is responsible
for the formulation and implementation of the
national budget with the goal of attaining the
nation's socio-economic objectives.
Department of Budget and Management
18.  The receipt of an appropriation is recorded by a
government entity in the
RAPAL
19. Is a part, segment, unit or function of a
government agency, headed by a manager, who
is accountable for a specified set of activities.
Responsibility Center
20. Which of the following accounts is debited
when a government entity remits its collections
to the National Treasury
Cash-Treasury/Agency Deposit, Regular
21. Collections made on behalf of another entity or
non-government/private organizations would
include a debit to
Cash-Collecting Officers
22. All of the following, except one, are the
objectives of government accounting:
To determine which government agency is
operating efficiently
23. Disallowances that are already final and
executory shall be recorded by debiting
Receivables-Disallowances/Charges
24. Which of the following financial statements is
peculiar to a government entity
Statement of Comparison of Budget and Actual
Amounts
25. All of the following are considered valid cashless
disbursement, except
payment to a supplier through pera padala
26. Sales Revenue are recorded when
When the significant risks and rewards of
ownership have been transferred to the buyer
as indicated in the sales invoice
27. This contains the details of all government
entities' proposed expenditure in the coming
year
National Expenditure Program
28. The accounting entries for the collection of
revenue of, and the constructive receipt of
disbursement authority to, Foreign Service
Posts (FSPs) would include a debit to
Cash-Collecting Officers
29. 1. Payment to government entities in the form
of checks are not allowed
2. The constructive remittance of taxes withheld
through the TRA gives rise to recognition of
revenue
Only statement 2 is true
30. Are economic benefits or service potential
compulsory paid or payable to public sector
agencies, in accordance with laws and or
regulations, established to provide revenue to
the government.
Taxes
31. Receipts of refunds from officers, employees
and suppliers/creditors resulting from
overpayment of expenses will include a credit
to
Specific Expense account
32. Which of the following is a non-exchange
transactions?
Collection of taxes
33. Advances for Operating Expenses are:
Granted to regular disbursing officer for
operating expenses of operating field units and
foreign post not maintaining complete set of
books.
 PRE8 – MIDTERM EXAM
34. This type of expenditure pertains to all types of
employee benefits
Personnel Services
35. Refers to an authorization issued by the
NGA/OU appearing in the lower portion of the
List of Due and Demandable Accounts Payable-
Advice to Debit Account (LDDAP-ADA).
Advice to Debit Account
36. Encompasses the process of analyzing,
recording, classifying, summarizing and
communicating all transactions involving the
receipts and disposition of government funds
and property, and interpreting the results
thereof.
Government Accounting
37. Collections made on behalf of another entity or
national government agency would include a
credit to
Due to NGAs
38. The 8-digit Revised Chart Accounts (RCA) Code
for expenses starts with number
5
39. Liquidation of advances amounting to
P100,00.00 (liquidated in full and no refund was
made) by an officer or employee would include
a debit to
Appropriate Expense Account
40. It is used to monitor appropriations and
allotments.
RAPAL
41. When an uncertainty arises about the
collectibility of an amount already included in
revenue, the uncollectible amount, or the
amount in respect of which recovery has ceased
to be probable, is recognized as an
Impairment loss
42. 1. An entity can incur obligations after receiving
notice of its appropriation but before receiving
the allotment
2. Budget deliberations in the Congress start in
the House of the Senate
Both Statements are false
43. To recognize collection of performance
bond/security deposits would include a
Debit to Cash Collecting Officer
44. Establishment of Petty Cash Fund (PCF) would
include a debit to
Petty Cash Fund
45. Cancellation and Replacement of
Stale/Voided/Spoiled MDS check issued in the
current year would include a credit to?
Accounts Payable
46. Replenishment of PCF
Expenses charged to the PCF:
Bond paper P 14,000
Postage stamps 2,000
Total P 16,000
Which of the following is wrong to record above
transactions?
Credit to Office Supplies Expense
47.  A certification on the availability of funds and
completeness of supporting documents is
required before a disbursement of government
funds is made. According to GAM for NGAs,
who shall issue this certification?
Chief Accountant
48. Which of the following accounts is credited
when government entity makes constructive
remittance of taxes withheld to the BIR?
Cash-Tax Remittance Advice
49. The receipt of performance bond or a security
deposit is credited to a
Liability account
 PRE8 – MIDTERM EXAM
50. Which of the following statement is correct?
No cash advance shall be given unless for a
legally authorized specific purpose