Midterm Quiz # 1 (Chapters 1 to 3)

Due Feb 12 at 11:59pm Points 45 Questions 45

Available Feb 4 at 12am - Feb 12 at 11:59pm 9 days Time Limit 75 Minutes

Instructions
Hello everyone,

This is a 45-item Quiz for Chapters 1 to 3. Its is combination of Multiple Choice and True or False Type
of Questions.

You are only given 75 minutes to answer your Quiz #1. There is no retaking of this quiz. Once submitted,
your grades can no longer be changed.

It is available from February 4 to 11, 2020 for Sec 1, 3 and 4, and February 5 to 12, 2020 for Sec 2.

For more questions, please don't hesitate to reach me through canvas chat box.

Thanks.

Prof J.

Attempt History
Attempt Time Score
LATEST Attempt 1 61 minutes 42 out of 45

 Correct answers are hidden.

Score for this quiz: 42 out of 45

Submitted Feb 12 at 11:46pm
This attempt took 61 minutes.

Question 1 1 / 1 pts

An entity prepares its budget by simply rolling-over the budget in the

previous year and adjusting each line item by 10% increment to reflect
inflation. This process is described as zero-based budgeting.

True

False
Question 2 1 / 1 pts

The principles used in the financial reporting of government entities are

very unique that only a very few of these principles are similar to those
that are applied to business entities.

True

False

Question 3 1 / 1 pts

Technically, only the Journals and Ledgers are considered accounting

records; Registries are budget records.

True

False

Question 4 1 / 1 pts

After the budget call from the DBM, the proposed budget of various
agencies are submitted immediately to the Office of the President for
review.

True

False

Question 5 1 / 1 pts

Government entities and business entities use the term “obligation” or the
phrase “incurrence of obligation” similarly.

True

False
Question 6 1 / 1 pts

The principles in the GAM for NGAs are similar to the principles in the
PFRs.

True

False

Question 7 1 / 1 pts

The entry to record the reversion of unused NCA at the end of the period
is the exact opposite of the entry used to record the receipt of NCA.

True

False

Question 8 1 / 1 pts

The various registries maintained by government entities primarily serve

as internal control for controlling and monitoring the conformance of
actual results with the approved budget.

True

False

Question 9 1 / 1 pts

Budget deliberations in the Congress start in the House of Senate.

True

False
Question 10 1 / 1 pts

Both the ORS and RAOD are updated each time an obligation is incurred,
a payable is recorded for the obligation incurred, and disbursements are
made to settle the recorded payables.

True

False

Question 11 1 / 1 pts

Separate accounting records and budget registries are maintained for

each fund cluster.

True

False

Question 12 1 / 1 pts

The various registries maintained by government entities primarily serve

as internal control for controlling and monitoring the conformance of
actual results with the approved budget.

True

False

Question 13 1 / 1 pts

Government entities and business entities use the term "obligation" or the
phrase "incurrence of obligation" similarly.

True

False
Question 14 1 / 1 pts

The GAM for NGAs is promulgated by the Philippine congress under the
authority conferred to it under the Philippine Constitution.

True

False

Question 15 1 / 1 pts

Responsibility accounting greatly enhances budget accountability

because managers are evaluated only in terms of the costs or other
variables that they control, and therefore, budget deviations can be readily
attributed to the managers accountable therefor.

True

False

Question 16 1 / 1 pts

A government entity records a transaction by debiting an account with a

Revised Chart of Account (RCA) Code that starts with “1” and crediting an
account with an RCA Code that starts with “4.” This transaction is most
likely a

payment of accounts payable

remittance of collection to the National Treasury

constructive remittance of taxes withheld to the BIR through TRA

receipt of inter-agency fund transfer.

Question 17 1 / 1 pts
It is a part, segment, unit or function of a government agency, headed by
a manager, who is accountable for a specified set of activities.

a. Responsibility Accounting

b. Responsibility Center

c. Budget Center

d. Call Center

Question 18 1 / 1 pts

Recording in the Obligation Request and Status (ORS) is made when

All of these

the recognized liabilities are settled

liabilities for the obligations are recognized in the books of accounts

obligations are incurred

Question 19 1 / 1 pts

Which of the following is (are) affected when a government entity incurs

obligations?

ORS

RAOD

ORS and RAOD

RAPAL
Question 20 1 / 1 pts

After the budget call, budget hearings are made whereby agencies defend
their proposed programs and expenditures for the upcoming year before
the

CONGRESS

COA

BTr

DBM

Question 21 1 / 1 pts

An entity accrues salaries and wages after approval of payroll. The entry
is:

Salaries and Wages, Regular xxx

Personal Economic Relief Allowance (PERA) xxx

Cash-Modified Disbursement System (MDS),

Regular xxx

Salaries and Wages, Regular xxx

Personal Economic Relief Allowance (PERA) xxx

Due to BIR xxx

Due to GSIS xxx

Due to Pag-IBIG xxx

Due to PhilHealth xxx

Due to Officers and Employees xxx

Salaries and Wages, Regular xxx

Personal Economic Relief Allowance (PERA) xxx

Advances to Officers and Employees xxx

 Question 22 1 / 1 pts

According to the GAM for NGAs, these assets are those which have
historical, cultural and environmental significance, and are intended to be
preserved for future generations.

Infrastructure assets

Heritage assets

Cultural assets

Question 23 1 / 1 pts

Which of the following qualitative characteristics may be sacrificed when

reporting information on a timely basis?
a. Relevance

b. Reliability
c. Substance over form
d. Faithful representation

Incorrect Question 24 0 / 1 pts

Which of the following is not one of the registries maintained by a

government entity?

All of these are maintained by a government entity

Registries of Allotments, Obligations and Disbursements

Registries of Journals and Ledgers

 Registries of Budget, Utilization and Disbursements

Question 25 1 / 1 pts

Which of the following would most likely comes last in the budget
process?
a. Budget accountability reports

b. Allotment

c. Disbursements

d. Performance review

Question 26 1 / 1 pts

Which of the following approaches to budget preparation provides the

best internal control?
a. Incremental budgeting

b. Zero-sum budgeting

c. Top-down budgeting

d. Zero-based budgeting

A
Question 27 1 / 1 pts

Which of the following statements best differentiates the government

accounting process from the accounting process of a business entity?

Unlike for the accounting process of business entities which ends in the
preparation of general purpose financial statements, the government
accounting process ends with the audit by the COA.

The government accounting process involves procedures that are not

generally acceptable for business entities.

The government accounting process involves numerous complicated steps

or procedures that are beyond the understanding of a mere JPIA member,
but not for a CPA

The government accounting process is similar to that of a business entity,

except that it incorporates budgetary controls, such as recording in the
budget registries and preparing periodic budget accountability reports.

Question 28 1 / 1 pts

Arrange the following steps in the budget process according to the

sequence that they appear in the budget cycle.

1. Allotment
2. Disbursement authority
3. Disbursement
4. Appropriation
5. Incurrence of obligation

IV, I, V, II and III

IV, V, I, II and III

IV, I, V, III and II

IV, I, II, V and III

Question 29 1 / 1 pts

A legislation approves the allocation of P200B funds to support the

operations of Entity A (a government agency) in the current year. At the
start of first quarter, Entity A receives authorization to incur obligations for
a maximum amount of P90B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter, Entity A
receives monthly authorization to disburse funds not to exceed P30B per
month. Entity A extends half of those monthly authorizations to its lower
operating units. At the end of the quarter, total obligations incurred
amounted to P80B while total disbursements amounted to P70B.

In Entity A’s first quarter Statement of Appropriations, Allotments,

Obligations, Disbursements and Balances, how much is shown as “unpaid
obligations”?

P10B

P 20B

P 12B

P 30B

Question 30 1 / 1 pts

A legislation approves the allocation of P200B funds to support the

operations of Entity A (a government agency) in the current year. At the
start of first quarter, Entity A receives authorization to incur obligations for
a maximum amount of P90B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter, Entity A
receives monthly authorization to disburse funds not to exceed P30B per
month. Entity A extends half of those monthly authorizations to its lower
operating units. At the end of the quarter, total obligations incurred
amounted to P80B while total disbursements amounted to P70B.

In Entity A’s first quarter Statement of Appropriations, Allotments,

Obligations, Disbursements and Balances, how much is shown as
“unreleased appropriations”?

P110B

P120B

P130 B
 P90B

Incorrect Question 31 0 / 1 pts

What is the legal basis of the COA in promulgating the GAM for NGAs?

a. Revised Penal Code, Art. 217

d. R.A. 9298

c. Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of
the Philippines

b. State Audit Code of the Philippines, P.D. No. 1445, Sec. 109

c. Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of
the Philippines

Question 32 1 / 1 pts

A legislation approves the allocation of P200B funds to support the

operations of Entity A (a government agency) in the current year. At the
start of first quarter, Entity A receives authorization to incur obligations for
a maximum amount of P90B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter, Entity A
receives monthly authorization to disburse funds not to exceed P30B per
month. Entity A extends half of those monthly authorizations to its lower
operating units. At the end of the quarter, total obligations incurred
amounted to P80B while total disbursements amounted to P70B.

The 90B authorization is referred to as

Appropriation

Sub-allotment

Allotment

Obligation
Question 33 1 / 1 pts

The accounting for government entities differs from the accounting for
business entities in which of the following respects?

Accounting policy choice for the subsequent measurement of investment

property.

Classification of intangible assets as either with finite or with indefinite

useful life for purposes of subsequent measurement.

Accounting for exchanges of property, plant and equipment

Accounting for exchanges of intangible assets.

Question 34 1 / 1 pts

A government entity remitting collections to the BTr will debit this account
to record the remittance.

Cash – Collecting Officers

Cash-Modified Disbursement System (MDS), Regular

Cash-Treasury/Agency Deposit, Regular

Subsidy from National Government

Question 35 1 / 1 pts

According to the GAM for NGAs, information has this qualitative

characteristic if it can be used to assist in evaluating past, present or
future events or in confirming or correcting past evaluations.
a. Feedback value

b. Predictive value

c. Materiality
d. Relevance

Question 36 1 / 1 pts

Entity A, a government entity, receives notice of its ₱10M appropriation for

the year. The journal entry to record this event is

Cash-Modified Disbursement System (MDS),

Regular 10,000,000
Subsidy from National Government 10,000,000

Cash-Collecting Officers
10,000,000
Subsidy from National Government 10,000,000

Cash-Tax Remittance Advice

10,000,000
Due to the National Government 10,000,000

No journal entry.

Question 37 1 / 1 pts

The statement of management responsibility for financial statements

attached to a government agency’s combined financial statements
(operating units, regional offices, and main office) would most likely be
 signed by the agency’s Head, together with the agency’s Secretary and
Treasurer.

none of these.

dated not earlier than February 14 of the year following the reporting
period

dated not later than February 14 of the year following the reporting period.

Question 38 1 / 1 pts

It is the expenditure authority derived from appropriation laws,

government ordinances, and other decisions related to the anticipated
revenue or receipts for the budgetary period

Approved Budget

Allotment

Notice of Cash Allocation

General Appropriations Bill

Question 39 1 / 1 pts

A legislation approves the allocation of P200B funds to support the

operations of Entity A (a government agency) in the current year. At the
start of first quarter, Entity A receives authorization to incur obligations for
a maximum amount of P90B in that quarter. Entity A extends half of that
authorization to its lower operating units. During the quarter, Entity A
receives monthly authorization to disburse funds not to exceed P30B per
month. Entity A extends half of those monthly authorizations to its lower
operating units. At the end of the quarter, total obligations incurred
amounted to P80B while total disbursements amounted to P70B.

In Entity A’s first quarter Statement of Appropriations, Allotments,

Obligations, Disbursements and Balances, how much is shown as
“unobligated allotments”?
 P10B

P20B

P12 B

P30B

Question 40 1 / 1 pts

In the financial reporting system of the national government, to which of

the following shall an entity reconciles its cash records?
a. Commission on Audit

b. Bureau of Treasury

c. Department of Budget and Management

d. Office of the President

Question 41 1 / 1 pts

Arrange the following steps in the budget process according to the

sequence that they appear in the budget cycle.

1. Allotment
2. Bicameral deliberations
3. Budget accountability reports
4. President’s enactment of the GAA
5. Budget hearings with the DBM

V, I, II, IV and III

V, II, IV, I and III

 V, IV, II, I and III

II, V, II, I and III

Question 42 1 / 1 pts

Which of the following records is technically not considered an accounting

book?

Subsidiary Ledger

Cash Disbursements Journal

General Journal

Registry of Appropriations and Allotments

Question 43 1 / 1 pts

The entry to close the “Cash-Treasury/Agency Deposit, Regular” account

at the end of the period is

Accumulated Surplus/(Deficit)

Cash-Treasury/Agency Deposit, xxx

Regular xxx

Cash-Collecting Officers

Cash-Treasury/Agency Deposit, xxx

Regular xxx

None of these. The account is not closed.

Subsidy from National Government

Cash-Treasury/Agency Deposit, xxx

Regular xxx
Incorrect Question 44 0 / 1 pts

Under GAM, which of the following is not a Financial Statement Title?

Statement of Comparison of Budget and Actual Amounts

Cash Flow Statement

Statement of Financial Performance

Statement of Changes in Net Assets/Equity

Question 45 1 / 1 pts

Entity A, a government entity, has an unused NCA of ₱50,000 at the end

of the current year. The entry to record the reversion of unused NCA is

Subsidy from National Government

Cash-Modified Disbursement
50,000
System (MDS), Regular 50,000

Subsidy from National Government

50,000
Cash-Collecting Officers 50,000

No journal entry.

Accumulated Surplus/(Deficit)

Cash-Treasury/Agency Deposit, 50,000

Regular 50,000

Quiz Score: 42 out of 45