1.

It refers to the process of recording and the management of all financial

transactions incurred by the government which includes its income and
expenditures.
Answer: Government Accounting
2. It encompasses the process of analyzing, recording, classifying, summarizing
and communicating all transactions involving the receipts and dispositions of
government funds and properties, and interpreting the results thereof.
Answer: Government Accounting
3. It is concerned with (a) the maintenance of records that show the propriety of
transactions and account for assets and other resources available for use (b) the
classification of items to provide useful information necessary for control and
efficient management operations, and (c) the preparation of periodic financial
reports
Answer: Government Accounting
4. What are the 3 aspects of government accounting?
Answer: Fund Accounting, Budgetary Accounting, Obligation Accounting
5. It is in view of the recognition of the fund as the accounting entity.
Answer: Fund accounting
6. It states that all government expenditures must conform with the national budget
as approved in an appropriation law.
Answer: Budgetary Accounting
7. This provides a maximum amount an agency can spend in the performance of its
function. An agency can only operate within the budget actually released to it by
the Department of Budgetary and Management which is within the appropriation
approved.
Answer: Obligation Accounting
8. In government accounting, ________________ is important.
Answer: Recordkeeping
9. The accounting unit for governmental entity.
Answer: Fund
10. It is defined as a sum of money or other resources set aside for the purpose of
carrying out specific activities or attaining certain objectives in accordance with
special regulations, restrictions or limitations.
Answer Fund
11. This aspect limits the government expenditure:
Answer: Budgetary accounting
12. This fund includes all financial resources except those required to be accounted
for in another fund. This is generally available for all functions of the government.
Answer: General Fund
13. This fund includes the proceeds of specific revenue from taxes that are legally
restricted to expenditures for specified purposes.
Answer: Special Fund
14. All financial resources
Answer: General Fund

15. Proceeds from specific revenues

Answer: Special Fund
16. It is a plan of financial operation composed of estimate or proposed expenditures
for a given period or purpose, and the proposed means of financing them.
Answer: Budget
17. Four budgetary procedures
Answer: Budget Preparation, Budget Authorization, Budget Execution and
Operation, Budget Accountability
18. This phase covers the estimation, determination and translation of government
revenues, priorities and activities. Under this phase, government agencies
prepare their budgets for the year to be submitted to the Department of Budget
and Management (DBM) for review.
Answer: Budget Preparation
19. To facilitate more timely decision making, the President multiplies himself
through the cabinets of various government agencies.
Answer: Alter ego rule
20. It refers to the yearly analysis, evaluation and justification of each activity project
or program, starting from zero performance and budgeting level. It does not
accept last year’s budget as a starting point for analysis.
Answer: Zero Based Budgeting
21. It refers to estimate/proposed expenditures and proposed means of financing
(e.g. revenue, taxes)
Answer: Budget
22. Any excess/savings from the projects are reverted back to
___________________.
Answer: Bureau of Treasury
23. This phase involves the submission of the National Budget to the Legislative
Body (the Congress) for review, deliberation and formulation of General
Appropriation Bill. Once the appropriation is passed by the Congress, the
President will sign for its final approval.
Answer: Budget Authorization
24. It refers to an authorization made by law or other legislative enactment for
payments to be made with the funds of the government under specified
conditions.
Answer: Appropriation
25. This covers the operational aspects of budgeting. It is simply the implementation
of the national budget for different departments and release of allotments and
notice of cash allocation.
Answer: Budget Execution and Operation
26. Issuance of General Appropriations Act as Release Document and subsequent
issuance of Notice of Cash Allocation based on the Agency’s Annual Cash
Program.
Answer: Budget Execution and Operation

27. Continuous monitoring and review of the government fiscal policies.

Answer: Budget Execution and Operation

28. Cash management and monitoring and generally seeing to it that funds are
available to support the approved agency functions and projects.
Answer: Budget Execution and Operation

29. It refers to a commitment by a government agency arising from an act of a duly

authorized official which binds the government to the immediate or eventual
payment of a sum of money.
Answer: Obligation
30. It is an authorization made by the DBM to an agency to withdraw cash from
Bureau of Treasury to pay expenses incurred through issuance of Modified
Disbursement System checks and other modes of disbursements.
Answer: Notice of Cash Allocation
31. It receives and keeps national funds, manage and control disbursements
thereof.
Answer: Bureau of Treasury
32. An agency’s expenditures cannot exceed beyond the budget limit and it cannot
borrow from another agency for its expenditures once it reached its budget limit.
Answer: Technical malversation
33. A legal case when the expenditures exceed beyond the budget limit.
Answer Technical Malversation
34. This phase involves the evaluation of expenditures and performance against the
predetermined budget. Obligations incurred, personnel used and work
accomplished are compared with the plans and goals of various agencies
submitted at the time their respective budget was prepared.
Answer: Budget Accountability
35. This is accomplished by the heads of the various agencies who review the
performance of their respective agency, and the Commission on Audit (COA)
who examines the operations of the agencies.
Answer: Budget Accountability
36. Acts in assessing the fidelity of the officials and employees carrying out the intent
of the Congress in response to their handling of receipts and expenditures.
Answer: COA
37. An independent constitutional body which promulgates accounting policies of the
government as well as the power, authority and duty to examine, audit and
settles all of its accounts pertaining to revenue and expenditures or uses of
funds.
Answer: Commission on Audit
38. It is a simplified set of accounting concepts, guidelines and procedures designed
to ensure correctness, completeness and timeliness in the recording of
government financial transactions and production of financial reports.
Answer: Government Accounting Manual
39. All expenses are recorded when incurred. Income shall be on accrual basis
except when impracticable to apply or when other methods are required by law.
Answer: Modified Accrual Basis
40. Only one fund, the General Fund shall be maintained. It is available for all
functions of government. Separate fund accounting shall be done only when
specifically required by law or by a donor agency or when necessitated by
circumstances subject to prior approval of the Commission on Audit.

Answer: One Fund Concept

41. Two accounting books used in Government Accounting

Answer: Regular Agency Books and National Government Books
42. A new coding structure and a new chart of accounts with a three -digit
numbering system shall be adopted.
Answer: Chart of Accounts
43. Accounting reports
Answer: Trial Balance
Statement of Financial Position
Statement of Financial Performance
Statement of Changes in Equity
Statement of Cash Flows
Statement of Comparison of Budget and Actual Amounts

44. A liability shall be recognized as bills are received, based on percentage of

completion and/or contract.
Answer: Construction of assets
45. These consist of the appropriations, allotments and obligations.
Answer: Budgetary accounts
46. Method of depreciation used in government accounting
 Answer: Straight line method
47. A ______% scrap value of the asset is always assumed and the estimated life is
prescribed by COA.
Answer: 10
48. Set up for fair valuation of receivables prior to write off.
Answer: Allowance for doubtful accounts
49. In recognizing liability, ___________ basis of accounting is used.
Answer: Accrual
50. In recognizing interest, ________ basis of accounting is used.
Answer: Accrual
51. Contingent Accounts are guided by PAS ____.
Answer: 37
52. 4 classification of government expenditures
Answer: Personal services, maintenance and other operating expenses, financial
expenses and capital outlay