GOVERNMENT ACCOUNTING

1. What is the title of the revised government accounting system for national government agencies which
will be effective starting January 1, 2016?
a. Government Accounting Manual (GAM)
b. New Government Accounting System (NGAS)
c. Philippine Government Accounting System (PGAS)
d. National Government Accounting Manual (NGAM)

2. Under the Article IX-D Section 2 of the 1987 Constitution of the Republic of the Philippines, it shall have
the exclusive authority, subject to the limitations in this article, to define the scope of its audit and
examination, establish the techniques and methods required therefore, and promulgate accounting and
auditing rules and regulations, including those for the prevention and disallowance of irregular,
unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds
and properties. It shall also be responsible to keep the general accounts of the Government and, for
such period as may be provided by law, preserve the vouchers and other supporting papers pertaining
thereto.
a. Commission on Audit
b. Civil Service Commission
c. Commission on Election
d. Commission on Human Rights

3. The Government Accounting Manual aims to update the following, except

a. Standards, policies, guidelines and procedures in accounting for government funds and
property
b. coding structure and accounts
c. accounting books, registries, records, forms, and financial statements
d. scope and objectives of audit

4. It encompasses the processes of analyzing, recording, classifying, summarizing and communicating all
transactions involving the receipt and disposition of government funds and property and interpreting the
result thereof.
a. Government auditing
b. Government reporting
c. Government accounting
d. Government analyzing

5. It refers to the financial plan of a government for a given period, usually for a fiscal year, which shows
what its resources are, and how they will be generated and used over the fiscal period.
a. Government budget
b. Government financial position
c. Government financial statements
d. Government financial performance

6. It refers to the first step in the government budgetary processes wherein the President, through the
assistance of the Department of Budget and Management, shall prepare and submit to the Congress
within 30 days from the opening of regular session of Congress a budget of expenditures and sources
of financing, including receipts from existing and proposed revenue measures.
a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

7. It refers to the second step in the government budgetary process which involves the statement by the
Congress of the General Appropriation Act (GAA) based on the budget submitted by the President
which cannot be increased by the Congress. The initiative for the enactment of the appropriation law
shall come from the House of Representatives.
 a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

8. It refers to the third step in the government budgetary process which involves that implementation of
the general appropriation act which includes the release of the revenue allotment under the supervision
of Department of Budget and Management
a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

9. It refers to the final step in the government budgetary process which involves the submission of proper
documentary reports by responsible officer, liquidation of expenditures and audit conducted by
Commission on Audit to ensure the public funds are spent in accordance with the appropriation act.
a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

10. Under the Government Accounting (GAM), the financial reporting system of the Philippine government
consists of accounting system on accrual basis and budget reporting system on budget basis under the
statutory responsibility of the National Government Agencies (NGAs), Bureau of the Treasury (BTr),
Department of Budget and Management (DBM), and the Commission on Audit (COA). Which of the
following is incorrect under the Government Accounting Manual?
a. Each entity of the National Government (NG) maintains complete set of accounting books by
fund cluster which is reconciled with the records of cash transactions maintained by BTr.
b. The BTr accounts for the cash, public debt and related transactions of the NG.
c. Each entity maintains budget registries which are reconciled with the budget records
maintained by the DBM and the Government Accountancy Sector (GAS), COA.
d. Each entity maintains Regular Agency (RA) Books and National Government (NG) books for
the recording of its transactions.

11. The General Accounting Manual enumerates the following components of the General Purpose
Financial S statements of Financial Statements of National Government Agencies, except
a. Statement of Financial Position
b. Statement of Financial Performance
c. Statement of Ratained Earnings
d. Statement of Cash flow
e. Statement of Changes in Net Assets/Equity
f. Statement of Comparison of Budget and Actual Amounts
g. Notes to the Financial Statements, comprising a summary of significant accounting policies
and other explanatory notes.

12. The books of accounts of National Government Agencies under the GAM shall consist of the following
except
a. General Journal
b. Cash Receipt Journal
c. Cash Disbursement Journal
d. Regular Agency and National Government Books
e. Check Disbursement Journal
f. General Ledgers
g. Subsidiary Ledgers
13. The registries of National Government Agencies under the GAM shall consist of the following except
a. Registries of Revenue and other Receipts (RROR)
b. Registry of Appropriations and Allotments (RAPAL)
c. Registries of Allotments, Obligations and Disbursement (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)
e. Registries of Priority Development Assistant Program (RPDAP)

14. It refers to the registry maintained by NGA unit to monitor the revenue and other receipts
estimated/budgeted, collected and remitted/deposited.
a. Registries of Revenue and other Receipts (RROR)
b. Registry of Appropriations and Allotments (RAPAL)
c. Registries of Allotments, Obligations and Disbursement (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

15. It refers to the registry maintained by NGA unit to show the original, supplemental and final budget for the
year and all allotments received charged against the corresponding appropriation.
a. Registries of Revenue and other Receipts (RROR)
b. Registry of Appropriations and Allotments (RAPAL)
c. Registries of Allotments, Obligations and Disbursement (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

16. It refers to the registry maintained by NGA unit to show the allotments received for the year, obligations
incurred against the corresponding allotment and the actual disbursement made.
a. Registries of Revenue and other Receipts (RROR)
b. Registry of Appropriations and Allotments (RAPAL)
c. Registries of Allotments, Obligations and Disbursement (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

17. It refers to the registry maintained by NGA unit to record the approved special budget and the
corresponding utilizations and disbursement charged to retained income authorized under the law and other
retained income collection of national government agency with similar authority.
a. Registries of Revenue and other Receipts (RROR)
b. Registry of Appropriations and Allotments (RAPAL)
c. Registries of Allotments, Obligations and Disbursement (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

18. The following are the classifications of different RAPAL, RAOD and RBUD, except
a. RAPAL/RAOD/RBUD – Personal Services
b. RAPAL/RAOD/RBUD – Maintenance and other Operating Expenses
c. RAPAL/RAOD/RBUD – Financial Expenses
d. RAPAL/RAOD/RBUD – Capital Outlays
e. RAPAL/RAOD/RBUD – Noncash Expenses

19. Which of the following statements concerning the period of validity of Notice of Cash Allocations (NCAs) is
incorrect?
a. NCA issued and credited to the Regular MDS Sub-Accounts of Agencies/OUs for their
regular operations, shall be valid until the last working day of 3rd month of that quarter
pursuant to DBM Circular Letter (CL) No. 2013-12.
b. NCA issued and credited to the Special MDS Accounts of Agencies specifically for payment
of RGITL benefits shall be valid until the last working day o the following month when the NCA
was issued, except when issued in December, pursuant to DBM Budget Circular No. 2013-1
c. NCA issued for trust receipts and credited to the Trust MDS Account of Agencies shall be
valid until the last working day of the year.
 d. NCA issued to the BTr for working funds of agencies shall be valid until the last working day
of the year.
e. NCA, regardless of source, shall be valid only for a period of 1-month from the date of
receipt.

20. On December 31, 2018, the Department of Finance billed its lessee on one of its building in the amount of
P10,000. On January 31, 2019, the Department of Finance collected all of the accounts receivable. On
February 28, 2019, the Department of Finance remitted the entire collected to the Bureau of Treasury. What is
the Journal Entry to record the remittance by the Department of Finance to the Bureau of Treasury?
a. Debit – Accounts Receivable P10,000 and Credit – Rent Income P10,000
b. Debit – Accounts Receivable P10,000 and Credit – Retained Earnings P10,000
c. Debit – Cash collecting officers P10,000 and Credit – Accounts Receivable P10,000
d. Debit – Cash- Treasury/Agency Deposit, Regular – P10,000 and Credit Cash – Collecting
officer – P10,000

21. On January 1, 2018, the Department of Public Works and Highways (DPWH) received a P10,000,000
appropriation from the national government for the acquisition of machinery. On February 1, 2018, DPWH
received the allotment from the Department of Budget and Management. On March 1, 2018, DPWH entered
into a contract with CAT Inc. for the acquisition of the machinery with a price of P8,000,000. On April 1, 2018,
DPWH received the Notice of Cash Allocation from the Department of Budget and Management net of 1%
withholding tax for income tax of supplier and 5% withholding of Final tax on VAT of supplier. On May 1 , 2018,
CAT Inc. delivered the machinery to DPWH. On June 1, 2018, DPWH paid the obligation to CAT Inc. On July
1, 2018, DPWH remitted the withheld income tax and final VAT to BIR.

What is the journal entry on March 1, 2018?

a. No entry but just posting to appropriate RAPAL

b. No entry but just posting to appropriate RAPAL and RAOD
c. No entry but just posting of ORS (Obligation Request and Status) to appropriate RAOD
d. Debit Machinery P8,000,000 and credit Accounts Payable P8,000,000

22. Using the data on number 21, what is the journal entry on April 1, 2018?
a. Debit Cash- MDS, Regular P7,520,000 and Credit Subsidy Income from National
Government
P7,520,000.
b. Debit Machinery P8,000,000 and Credit Accounts Payable P8,000,000
c. Debit Accounts Payable P8,000,000 and Credit Due to BIR P480,000 and Cash –MDS,
Regular P7,520,000.
d. Debit Due to BIR P480,000 and Credit Subsidy Income from the National Government
P480,000

23. The salary accountant of DENR provided the following data concerning the salaries of its officers and
Employees for the month ended December 31, 2016:
Salaries and wages P510,000
Personal Economic Relief Allowance (PERA) 55,000
Gross Compensation 565,000
Withholding income tax 51,000
GSIS 15,300
PAG-IBIG 10,200
Philhealth 510
Net P487,990

DENR received the notice of cash allocation from the DBM net of 10% tax on basic salary. Afterwards,
DENR granted cash advance to the cashier for the payroll. Afterwards, the DENR cashier paid the employees
and submitted liquidation report of the payroll fund with the corresponding supporting documents. Afterwards,
DENR remitted the withheld tax to BIR and withheld contribution to GSIS, PAG-IBIG and Philhealth.
What is the journal entry to recognize grant of cash advance to the cashier for the payroll?
a. Cash – MDS, Regular 508,500
Subsidy Income from National Government 508,500
b. Salaries and Wages Regular 510,000
PERA 55,000
Due to BIR 51,000
Due to GSIS 15,300
Due to PAG-IBIG 10,200
Due to Philhealth 510
Due to officers and employees 487,990
c. Advances for payroll 487,990
Cash – MDS, Regular 487,990
d. Due to officers and employees 487,990
Advances for payroll 487,990
e. Due to GSIS 15,300
Due to PAG-IBIG 10,200
Due to Philhealth 510
Cash – MDS, Regular 26,010

24. Department of Health (DOH) received Notice of Cash Allocation in the amount of P100,00 from the
Department of Budget and Management. DOH made a total cash disbursement in the amount of P95,000.
What is the journal entry to recognize reversion of unused Notice of Cash Allocation by DOH in its books?
a. Debit Subsidy Income from the National Government P5,000 and credit Cash-MDS, Regular P5,000.
b. Debit Retained Earnings of DFA P5,000 and credit Cash – MDS, Regular P5,000
c. Debit Expenses of DFA of P5,000 and credit Cash-MDS, Regular P5,000
d. Debit Investment of DFA P5,000 and credit Cash- MDS, Regular P5,000.

25. Which of the following closing entries in the accounting book of Department of Tourism is incorrect if the
following data are provided by its chief accountant?

Total Income, aside from SING P1,598,000

Total Expenses 791,652
Total Subsidy Income from National Government 1,181,882

a. Income account other than SING 1,598,000

Revenue and Expense Summary Account 1,598,000
b. Revenue and Expense Summary Account 791,652
Expense Account 791,652
c. Subsidy Income from National Government 1,181,882
Revenue and Expense Summary Account 1,181,882
d. Revenue and Expense Summary Account 1,988,230
Accumulated Surplus/(Deficit) 1,988,230
e. Ordinary shares 3,931,534
Share Premium 3,931,534

26. On January 31, 2016 the collecting officer of Bureau of Customs collected P350,000 import duties plus
fines of P10,000 on the goods of an importer. On February 28, 2016, the Bureau of Customs remitted the
P350,000 to the Bureau of Treasury. What is the journal entry to record the collection of the import duties?
a. Debit Cash-Collecting Officer P360,000 and Credit Import duties P350,000 and fines/Penalties
P10,000
b. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Cash-Collecting Officer
P360,000
c. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Import duties P350,000 and
fines/Penalties P10,000.
27. Using the same data in number 26, but assuming the importer directly deposited the 350,000 import duties
and P10,000 fines through Authorized Agent Banks instead of collection by a customer collecting officer, what
is the journal entry to record the collection/remittance of import duties to Bureau of Treasury?
a. Debit Cash-Collecting Officer P360,000 and Credit Import duties P350,000 and fines/Penalties
P10,000
b. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Cash-Collecting Officer
P360,000
c. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Import duties P350,000 and
fines/Penalties P10,000.

28. The Bureau of Treasury received P20,000 cash remittance from Department of Agrarian Reform (DAR)
from its miscellaneous income. What is the journal entry of the Bureau of Treasury in its accounting books to
record the receipt of cash remittance from the income of a national government agency?
a. Debit Cash in Bank, Local Bank P20,000 and Credit Cash-Treasury/Agency Deposit, Regular
P20,000
b. Debit Cash in Bank, Local Bank P20,000 and Credit Miscellaneous Income of DA P20,000
c. Debit Cash in Bank, Local Bank P20,000 and Credit Savings of DA, Regular P20,000
d. Debit Cash in Bank, Local Bank P20,000 and Credit Cash-Collecting Officer, DA P20,000.

29. The Department of National Defense obtained a loan from Asian Development Bank to finance the
acquisition of Philippine’s first aircraft carrier. The principal of the loan is $1B. What is the journal entry in the
accounting book of Bureau of Treasury to record the receipt of loan proceeds based on credit advice from
BSP?
a. Debit Cash in Bank, Local Bank or BSP $1B and Credit Cash-Treasury/Agency Deposit, Regular
$1B.
b. Debit Cash in Bank, Foreign Currency BSP $1B and credit Loans Payable-Foreign $1B.
c. Debit Cash in Bank, Foreign Currency BSP $1B and Credit Subsidy income From Asian
Development Bank $1B.
d. Debit Cash in Bank, Foreign Currency BSP $1B and Credit Capital Account, ADB $1B.

30. On February 1, 2016, the Department of Health received $10M cash from PLDT for medical expenses of
victims of calamities. The collection of the P10M donation is considered as authorized special account. DOH
remitted the donation to the Bureau of Treasury on March 1, 2016. What is the journal entry on March 1, 2016
in the accounting book of DOH?
a. Debit Cash-Collecting Officer $10M and Credit Medical Fees $10M
b. Debit Cash-Treasury/Agency Deposit, Special Account $10M and Credit Cash-Collecting Officers
$10M.
c. Debit Cash in Bank-Local Currency, Savings Account $10M and Credit Cash-Treasury/Agency
Deposit, Special Account $10M
d. Debit Cash-Collecting Officer $10M and Credit Medical Fees $10M

31. On September 1, 2016 $10M donation is deposited directly by United Nations World Health Organization to
the Bureau of Treasury to help the Philippine government battle Zika Virus. What is the journal entry in the
accounting book of Bureau of Treasury to record the receipt of grants or donation from UN-WHO?
a. Debit Cash in Bank, Foreign Currency Savings Deposit $10M and Credit Income from grants and
Donations $10M.
b. Debit Cash-Collecting Officer $10M and Credit Income from grants and Donations $10M.
c. Debit Cash in Bank, Foreign Currency Savings Deposit $10M and Credit Loans Payable $10M.
d. Debit Cash-Collecting Officer $10M and Credit Ordinary Shares, UN WHO $10M

32. On February 1, 2016, the Department of Environment and National Resources (DENR) transferred
P450,000 fund to Department of Public Works and Highways (DPWH) for the construction of DENR’s irrigation
project. The 450,000 fund was then remitted by DPWH to Bureau of Treasury on May 1, 2016. The project was
completed and turned over by DPWH to DENR on October 31, 2016. What is the journal entry in DENR’s
book to record the transfer of funds on February 1, 2016?
 a. Debit Due from DPWH P450,000 and Credit Cash, MDS, Regular P450,000
b. Debit Cash-Treasury/Agency Deposit/Trust P450,000 and Credit Cash-Collecting Officers P450,000
c. Debit Cash-Collecting Officers P450,000 and Credit Due to DENR P450,000
d. Debit Cash-Treasury/Agency Deposit/Trust P450,000 and Credit Cash-Collecting Officers P450,000
33. Using the same data in number 32, what is the journal entry of DPWH to record the turnover of irrigation
project to DENR on October 31, 2016?
a. Debit Due to DENR P450,000 and Credit PPE Account P450,000
b. Debit PPE Account P450,000 and Credit Due from DPWH P450,000
c. Debit Due to DENR P450,000 and Credit Cash-Collecting Officers P450,000
d. Debit Cash-Collecting Officer P450,000 and Credit Due from DPWH P450,000

END