Government

Accounting
Chapters 1-3 Sets of Questions

QUESTIONS:

1. It is used to monitor the budgeted amounts, actual collections and remittances of

other revenue and receipts.

A. Registries of Allotments, Obligations and Disbursements

B. Registry of Appreciations and Allotments

C. Registries of Revenue and Other Receipts

D. Registries of Budgets, Utilization and Disbursements

Answer: C. Registries of Revenue and Other Receipts

Explanation:

A. RAOD is used to monitor the allotments, obligations and disbursements.

B. RAPAL is used to monitor appropriations and allotments.

D. RBUD is used to record the approved special budget and utilizations and
disbursements charged to retained earnings.

So the answer is RROR.

2. Document that contains the details of all government entities' proposed expenditure
of the coming year.

A. National Expenditure Program

B. The President's Message

C. Line Item Budget

D. Performance Budget

Answer: A. National Expenditure Program

Explanation:

The President's Budget contains documents which are intended to assist the Congress
in their review and deliberation of the proposed national budget and the NEP is the
one that contains the details of all government entities' proposed expenditure of the
coming year.

3. This committee is formed to harmonize any conflicts of the Representatives and

Senate versions of GAB.

A. House of Representatives

B. Senate

C. The President
D. Bicameral Conference Committee

Answer: D. Bicameral Conference Committee

Explanation:

After the deliberation in both houses are finished, a committee called Bicameral
Conference Committee is formed to harmonize any conflicts of the Representatives
and Senate versions of GAB.

4. The following are the major recipients of the budget, except:

A. NGAs

B. BTr

C. LGUs

D. GOCCs

Answer: B. BTr

Explanation:

The major recipients of the budget are NGOs, LGUs, and GOCCs. The BTr is the
principal custodian of government funds.

5. The one who audits the government agencies.

A. COA

B. BTr

C. DBM

D. DOLE

Answer: A. COA

Explanation:

The role of the Commission on Audit (COA) in the scheme of governance is defined
in the Constitution, as: (1) to examine, audit and settle all accounts pertaining to
revenues and receipts of, and expenditures or uses of funds and property owned by
Government or its agencies; and (2) to submit a report covering the financial
condition and operation of the Government and its agencies, and recommend
measures necessary to improve their effectiveness and efficiency.
6. Because budgetary accounts are used by governments, their financial statements
can never be said to be in accord with generally accepted accounting principles.

A. True

B. False

Answer: FALSE

The Budgeting and Budgetary Control principle requires the accounting system to
provide the basis for budgetary control. The Budgetary Reporting principle also
requires that budgetary comparisons be presented as required supplementary
information (RSI) for the General Fund and each major special revenue fund that has
a legally adopted annual budget. Thus, to utilize budgetary accounts and include
budgetary comparisons in financial statements is to be in conformity with GAAP.

7. Government agency shall maintain which of the following registries for allotments
and obligations?

A. Registry of Allotments and Obligation- Personal Services

B. Registry of Allotments and Obligation-Maintenance and Other Operating Expenses

C. Registry of Allotments and Obligation- Capital Outlay

D. All of the choices

ANSWER: D

Explanation:

Separate Registries of Allotments, Obligations and Disbursements (RAOD) shall be

maintained for each object of expenditure. These are:

* Personal Services (PS)- all types of employee benefits

* Maintenance and Other Operating Expenses (MOOE)- various operating expenses

other than employee benefits and financial expenses

* Financial Expenses (FE)- finance costs, e.g., interest expense, bank charges and etc.
* Capital Outlays (CO)- capitalizable expenditures, e.g., expenditures on the
construction of public infrastructures, acquisition cost of equipment, etc.

8. In the New Government Accounting System (NGAS), Fund Accounting is

presented in what section?

A. Section 11

B. Section 12

C. Section 13

D. Section 14

ANSWER: C.

Explanation:

In the New Government Accounting System, Section 11 is about the components of

General Purpose Financial Statements. Section 12 presents the Book of Accounts and
Registries while Section 14 laid down the components of budget and financial
accountability report. The Section 13 of NGAS presents the Fund Accounting where
the books of accounts shall be maintained by fund clusters with its corresponding
code and description. It composed of seven codes.

9. It is a government agency responsible for the deliberation of the budget proposals,

makes recommendations and consolidates the deliberated proposals.

A. CoA

B. DBM

C. Congress

D. Senate

Answer: B. Department of Budget and Management

Explanation:

Under budget hearing, each agency depends its budget proposal before the DBM. It is
the agency that consolidates the deliberated proposals into the National Expenditure
Program (NEP) and Budget of Expenditures and Sources of Financing (BESF).
TheDBM then submits the proposed budget to the President.

10. Under the so-called “President’s Budget” the following are included except one.
What it is?

A.President’s Budget Message

B. Other documents

C. Budget of Expenditures and Sources of Financing

D. Annual Budget

Answer: D

Explanation:

The President’s Budget contains the following documents which are intended to assist
the Congress in their review and deliberation of the proposed national budget:

* President’s Budget Message

* National Expenditure Program (NEP)

* Budget of Expenditures and Sources of Financing

* Other documents (aiming to provide further explanation of selected items in the

NEP e.g., details of key programs and projects)

Also, annual budget is a relevant term under the budget call. It covers a period of one
year and forms the basis for the annual appropriation.