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ACCO 30033 Quiz 5: Cooperatives
1. Cooperatives are exempted from paying taxes.

a. The statement is correct.
b. The statement is incorrect.
2. Payments of patronage refund will be reported in the statement of cash flows under:
a. Operating
b. Investing
c. Financing
3. In general, the primary objective of every cooperative is:
a. To provide goods and services to its members
b. To provide optimum social and economic benefits to its members
c. To help improve the quality of life of its members
d. To allow the lower-income and less privileged groups to increase their ownership in the wealth of
the nation
4. A cooperative formed and organized under the law acquires juridical personality from the date:
a. Of filing the articles of cooperation and bylaws
b. The Cooperative Development Authority (CDA) issues a certificate of registration under its
official seal
c. The authority approves the articles of cooperation and bylaws
d. Of organization of the cooperative
5. Both the Articles of Cooperation and By-Laws are required for registration to the CDA.
6. Unless otherwise provided in the by-laws, the direction and management of the affairs of a cooperative
shall be vested in the board of directors which shall be composed of:
a. Not more than fifteen (15) members elected by the GA for a term of three years.
b. Not less than five (5) nor more than fifteen (15) members elected by the GA for a term of three (3)
years.
c. Not less than five (5) nor more than fifteen (15) members elected by the GA for a term of two
(2) years.
d. At least five (5) members elected by the GA for a term of two (2) years.
7. The Cooperative Development Authority is the sole government agency mandated to register all types of
cooperatives.
8. Cooperative fund created to provide for stability and to absorb losses, if any, in its business operations.
a. Patronage Fund
b. Reserve Fund
c. Optional Fund
d. Cooperative Education and Training Fund
9. A type of cooperative with the primary purpose of procuring and distributing commodities to members and
non-members.
a. Credit Cooperative
b. Producers Cooperative
c. Consumers Cooperative
d. Multi-Purpose Cooperative
10. Funds set aside from the net surplus and shall be used for the acquisition of PPE.
a. Plant Fund
b. Reserve Fund
c. Optional Fund
d. Patronage Fund
11. A type of cooperative that combines two (2) or more of the business activities of the different types of
cooperatives.
a. Credit Cooperative
b. Producers Cooperative
c. Consumers Cooperative
d. Multi-Purpose Cooperative
12. It is the highest policy-making body of the cooperative which exercises such powers as are stated by law,
in the articles of cooperation and in by laws of the cooperative.
a. Board of Directors
b. Board of Cooperators
c. General Assembly (GA)
d. Executive Committee
13. What is the title of RA No. 9520?
a. Cooperative Code of the Philippines
b. Cooperative Development Authority
c. Philippine Cooperative Code of 2008
d. Revised Cooperative Code of the Philippines
14. National Cooperative Month is celebrated every year during the month of:
a. July
b. August
c. September
d. October
15. The following funds are the statutory funds of a cooperative, except:
a. Reserve Fund
b. Education and Training Fund
c. Community and Extension Fund
d. Optional Fund
16. Statement 1: A duly registered cooperative shall have limited liability.
Statement 2: A duly registered cooperative has a term of 50 years from the date of registration, with no
extension.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.
17. Collections of members’ share capital will be reported in the statement of cash flows under:
a. Operating
b. Investing
c. Financing
18. What is the classification of the Cooperative Development Authority (CDA)?
a. National Government Agency
b. Local Government Unit
c. Government-Owned and/or Controlled Corporation
d. Non-governmental Organization
19. What is the minimum capitalization of a cooperative?
a. 5,000
b. 10,000
c. 15,000
d. 20,000
20. The minimum number to organize a cooperative is 15 members.
21. The Reserve Fund of a cooperative is 8% of its net surplus.
a. The cooperative violates the Cooperative Code.
b. The allocated fund is within the amount required by law.
22. One of the requirements for a prospective member to be accepted in a cooperative is the completion of a
Pre-Membership Education Seminar.
23. What shall be used as a basis of accounting for accounts or transactions whenever PFRS for SMEs differ
from the revised Standard Chart of Accounts for Cooperatives?
a. Standard Chart of Accounts
b. PFRS for SMEs
c. PFRS
d. PAS
24. Statement 1: In primary cooperatives, members have equal voting rights of one- member, one vote.
Statement 2: A regular member is one who has complied with the majority of the membership
requirements.
25. The Cooperative Education and Training Fund (CETF) of a cooperative is 8% of its net surplus.
a. The cooperative violates the Cooperative Code.
b. The allocated fund is within the amount required by law.
26. Cooperatives are governed by Republic Act No. (RA):
a. 9520
b. 9160
c. 9194
d. 9250
27. Who may organize a primary cooperative?
a. Fifteen (15) or more natural persons, majority of whom must be Filipino citizens, of legal age,
having a common bond of interest and are actually residing, or working in the intended area of
operation and must have completed a Pre-Membership Education Seminar (PMES).
b. At least five (5) but not more than fifteen (15) natural persons, Filipinos, of legal age, with PMES,
having a common bond interest and are actually residing or working in the intended area of
operation.
c. Fifteen (15) or more natural persons, Filipino citizens, of legal age, having a common bond
of interest and are actually residing or working in the intended area of operation and must
have completed a PMES.
d. At least fifteen (15) but not more than 30 natural persons, Filipino citizens, of legal age, with PMES,
having a common bond of interest and are actually residing or working in the intended area of
operation.
28. An associate member of a cooperative is entitled to all the rights and privileges provided by cooperative
laws.
29. Statement 1: The cooperative may be dissolved by order of the competent court after due hearings on the
grounds of violation of any law, regulations, or provision of its by-laws and insolvency.
Statement 2: The CDA may suspend or revoke, after due notice and hearing the Certificate of Registration
if the cooperative exists for an illegal purpose.
30. Statement 1: A member shall have the right to examine the records required to be kept by a cooperative on
any day.
Statement 2: Any officers of the Cooperative who shall refuse to allow any cooperative member to examine
and copy excerpts from its records shall be liable to such member for damages.
ACCO 30033 Quiz 1 and 2 (AY2020-2021 1ST ACCO 30033 BSA 3-
1)
Government Accounting Concepts and Problems
Points:
47/50
1.What is the legal basis of the COA for the performance of its function?. Single
choice.
(1/1 Point)
PD 1445
NGAS
IPSAS
1987 Constitution
Correct answers: 1987 Constitution
2.Department of Finance granted cash advance for the traveling expenses of its
Department Heads to attend a convention in Davao in the amount of P500,000.
The Department Heads submitted the liquidation report and supporting documents
of cash advances and refunded P20,000 of the excess cash advance. The debit
journal entry to record the refund of excess cash advance includes. Single choice.
(1/1 Point)
Cash – MDS, Regular, P20,000
Cash – Disbursing Officer, P20,000
Cash-Collecting Officer, P20,000
Advances to Officers and Employees, P20,000
Correct answers: Cash-Collecting Officer, P20,000
3.Which of the following is not an expense under the classification Personnel

Services?. Single choice.
(1/1 Point)
Representation Expenses
Personnel Economic Relief Allowance
Salaries and Wages-Regular
Representation Allowance
Correct answers: Representation Expenses
4.The following are the selected transactions of a national government agency for
the month of March 2020: Total Allotment for MOOE P10,000,000 Total NCA for
MOOE 7,500,000 Total Obligation for MOOE 8,000,000 Total Obligations
liquidated (disbursement) for MOOE 7,000,000 What is the total amount of
unliquidated obligation for MOOE?. Single choice.
(1/1 Point)
2,500,000
1,500,000
2,000,000
1,000,000
Correct answers: 1,000,000
5.Which of the following income of NGAs is classified as service income?. Single

choice.
(1/1 Point)
Interest Income
School Fees
Passport and VISA Fees
Rent/Lease Income
Correct answers: Passport and VISA Fees
6.A government agency ordered a piece of office equipment for P1,200,000 on

August 20, 2020. The equipment was delivered to the government agency on
September 11, 2020, and immediately used. The asset has an estimated useful life of
10 years. The book value of the equipment on December 31, 2021, is:. Single choice.
(1/1 Point)
1,048,000
1,062,000
1,087,500
1,040,000
7.This account is debited to record the amount advanced to officers and employees
for official travel.. Single choice.
(1/1 Point)
Advances for Operating Expenses
Due from Officers and Employees
Advances to Officers and Employees
Advances to Special Disbursing Officer
Correct answers: Advances to Officers and Employees
8.These are expenditures that could not pass the test of prudence or the required
diligence of a good father of a family, thereby not responsive to the exigencies of
the service. These expenditures are not supportive of the objective and mission of
the agency relative to the nature of its operations.. Single choice.
(1/1 Point)
Irregular
Excessive
Unnecessary
Extravagant
Correct answers: Unnecessary
9.Authority issued by the Central Office of a government agency to its regional and
operating units to cover the latter’s cash requirements.. Single choice.
(1/1 Point)
NCA
NTA
NCAA
CDC
Correct answers: NTA
10.The following Cash account titles are included in the Trial Balance of a national
government agency, except. Single choice.
(1/1 Point)
Petty Cash
Cash-Local Treasury
Cash-Collecting Officer
Cash-MDS, Regular
Correct answers: Cash-Local Treasury
11.All of the following are national government agencies except:. Single choice.
(1/1 Point)
PUP
COA
BIR
GSIS
Correct answers: GSIS
12.The current chairman of the Commission on Audit (COA) is:. Single choice.
(1/1 Point)
Emilio Aguinaldo
Michael Aguinaldo
Martin Aguinaldo
Marvin Aguinaldo
Correct answers: Michael Aguinaldo
13.Under the current government accounting system, an obligation for the purchase
of equipment is recorded in the:. Single choice.
(1/1 Point)
RAOD-PS
RAOD-FE
RAOD-CO
RAOD-MOOE
Correct answers: RAOD-CO
14.Tangible items with a service life of more than one year and not within the
capitalization threshold of P15,000.. Single choice.
(1/1 Point)
Semi-expendable property and equipment
Inventories
Property and Equipment
Investment
Correct answers: Semi-expendable property and equipment
15.A national government agency purchased office supplies from a VAT-registered

company for P851,200. The agency also paid the P179,200 MERALCO bill and the
PLDT bill of P134,400. How much is the net amount of cash paid to MERALCO?.
Single choice.
(1/1 Point)
16,656
168,000
126,000
294,000
Correct answers: 168,000
16.The debit entry to close the unused NCA on the books of a national government
agency is. Single choice.
(1/1 Point)
Subsidy from National Government
Cash-MDS, Regular
Due to National Treasury
Cash -Collecting Officers
Correct answers: Subsidy from National Government
17.Department of Public Works and Highways (DPWH) purchased Construction

Equipment from a VAT-registered supplier on March 10, 2020, and was available
for use only on April 05, 2020. The invoice price (exclusive of VAT) amounted to
P2,500,000. The estimated useful life of the asset is 10 years. Depreciation is to be
considered as one month if available for use on or before the 15th of the month,
however, if it is available for use after the 15th of the month, depreciation is for the
succeeding month. Assume that the company estimates a 5% salvage value for the
construction equipment. How much is the total amount credited to Due to BIR if the
equipment was paid on April 10, 2020?. Single choice.
(1/1 Point)
156,250
175,000
150,000
133,929
18.The following are the selected transactions of a national government agency: a.

Signed a contract for the construction of the building, Contract Price-P100 Million.
b. Advances to contractors were made, P15% of the contract price. c. Received the
progress billings from the contractor, 30% completion. d. Paid the amount due to
the contractor. Deductions are as follows: Recoupment of the advances, 20% of
the billings Retention, 10% of the billings Withholding tax The entry to record the
advances includes a:. Single choice.
(1/1 Point)
debit to Due from Contractors, P4.5M
debit to Advances to Contractors, P15M
debit to Due from Contractors, P30M
credit to Cash-MDS), Regular, P14,062,500
Correct answers: debit to Advances to Contractors, P15M
19.Which of the following describes the best example of extravagant

expenditures?. Single choice.
(1/1 Point)
Payment of allowances & other forms of additional compensation without proper authority.
Overpricing of purchases characterized by grossly exaggerated or inflated quotations, in excess of
the prevailing market price
Luxurious furnishings for government buildings.
Grant of overtime pay for work that is not urgent in nature.
Correct answers: Luxurious furnishings for government buildings.
20.A government budgetary process wherein the President, through the assistance
of the DBM, shall prepare & submit to the Congress a Budget of Expenditures and
Sources of Financing (BESF), including receipts from existing and proposed revenue
measures.. Single choice.
(1/1 Point)
Budget Preparation and Presentation
Budget Authorization
Budget Execution
Budget Accountability
Correct answers: Budget Preparation and Presentation
21.It signals the start of the preparation of the budget proposal.. Single choice.
(1/1 Point)
Budget message
budget call
Budget proposal
Budget memorandum
Correct answers: budget call
22.Which of the following is used as the basis of a recording in the journals?. Single
choice.
(1/1 Point)
Journal Entry Voucher
Obligation Request
Purchase Order
Subsidiary Ledgers
Correct answers: Journal Entry Voucher
23.Department of Public Works and Highways (DPWH) purchased Construction

Equipment from a VAT-Registered supplier on March 10, 2020, and was available
for use only on April 05, 2020. The invoice price (exclusive of VAT) amounted to
P2,500,000. The estimated useful life of the asset is 10 years. Depreciation is to be
considered as one month if available for use on or before the 15th of the month,
however, if it is available for use after the 15th of the month, depreciation is for the
succeeding month. Assume that the company estimates a 5% salvage value for the
construction equipment. How much is the book value of the equipment on
December 31, 2021?. Single choice.
(1/1 Point)
2,334,500
2,84,375
2,312,333
2,064,583
24.The following are the selected transactions of a national government agency for
the month of March 2020: Total Allotment for MOOE P10,000,000 Total NCA for
MOOE 7,500,000 Total Obligation for MOOE 8,000,000 Total Obligations
liquidated (disbursement) for MOOE 7,000,000 What is the total amount of
unobligated allotment for MOOE?. Single choice.
(1/1 Point)
2,500,000
1,500,000
2,000,000
1,000,000
25.The following account balances were taken from the books of a government
agency: Salaries & Wages – Regular, P7,950,000; PERA, P300,000; Other Supplies
& Materials Expense, P412,500; Water Expenses, P45,000; Electricity Expenses,
P75,000; Telephone Expenses, P22,500; Travelling Expenses, P127,500;
Representation Allowance & Transportation Allowance (RATA), P225,000;
Depreciation Expenses, P150,000; Subsidy from National Government,
P10,750,000; Interest Income, P7,500; Interest Expense, P12,000; Bank Charges,
P2,250; Retirement & Life Insurance Premiums, P795,000; PAG-IBIG Contributions,
P100,000; PHILHEALTH Contributions, P79,500; Employees Compensation
Insurance Premiums, P50,000. How much is the total amount of expenses under
Personnel Services (PS)?. Single choice.
(1/1 Point)
8,674,500
8,475,000
8,250,000
9,499,500
26.It refers to authorizations made by law for payments to be made with

government funds under specified conditions for specified purposes.. Single choice.
(1/1 Point)
Appropriations
Allotments
Allocation
Obligation
Correct answers: Appropriations
27.Statement I: Government Accounting Manual contains the accounting policies in
accordance with the PPSAS as well as the guidelines and procedures to be adopted
by the accountants, budget officers, cashiers, property officers, accountable
officers, and other finance personnel in recording and reporting government
financial transactions. Statement II: Cash in Bank-Local Currency Current Account is
debited to recognize deposits with AGDBs of income received for which the agency
has authority to use.. Single choice.
(1/1 Point)
Both statements are TRUE.
Only Statement I is TRUE
Only Statement II is TRUE
Both statements are FALSE
Correct answers: Both statements are TRUE.
28.Purchases without any bidding is an example of:. Single choice.

(0/1 Point)
Irregular Expenditures
Unconscionable Expenditures
Excessive Expenditures
Unnecessary Expenditures
Your answer to question 28 is wrong. Correct answers: Irregular Expenditures
29.The minimum amount of an individual asset to be recognized as PPE.. Single

choice.
(1/1 Point)
25,000
20,000
15,000
10,000
30.Checks issued by the government agencies chargeable against the account of

the Treasurer of the Philippines. Single choice.
(1/1 Point)
Commercial checks
MDS checks
Managers Checks
NCA checks
Correct answers: MDS checks
31.Statement I: Excessive expenditures are those incurred without restraint,

judiciousness, economy& exceed the bounds of propriety. These expenditures are
immoderate, prodigal, lavish, luxurious & injudicious. Statement II: Extravagant
expenditures are those incurred at an immoderate quantity or exorbitant price.
These also include expenses that exceed what is usual or proper as well as
expenses that are beyond just measure or amount.. Single choice.
(1/1 Point)
Both statements are TRUE.
Both statements are FALSE.
Only statement 1 is TRUeE
Only statement 2 is TRUE.
Correct answers: Both statements are FALSE.
32.The following account balances were taken from the books of a government
agency: Salaries & Wages – Regular, P7,950,000; PERA, P300,000; Other Supplies
& Materials Expense, P412,500; Water Expenses, P45,000; Electricity Expenses,
P75,000; Telephone Expenses, P22,500; Travelling Expenses, P127,500;
Representation Allowance & Transportation Allowance (RATA), P225,000;
Representation Expenses, P150,000; Subsidy from National Government,
P10,750,000; Interest Income, P7,500; Interest Expense, P12,000; Bank Charges,
P2,250; Retirement & Life Insurance Premiums, P795,000; PAG-IBIG Contributions,
P100,000; PHILHEALTH Contributions, P79,500; Employees Compensation
Insurance Premiums, P50,000. How much is the total amount of expenses under
Maintenance & Other Operating Expenses (MOOE)?. Single choice.
(1/1 Point)
834,750
870,000
1,134,750
832,500
33.A government agency had the following items for disbursements: Electricity
Expenses 500,000 Rent/Lease Expenses 246,400 Telephone Expenses 120,000
Office Supplies Inventory 67,200 Office Equipment 224,000 How much is the net
amount paid for rental?. Single choice.
(1/1 Point)
224,400
231,000
233,200
P221,760
34.A national government agency purchased office supplies from a VAT-registered

company for P851,200. The agency also paid the P179,200 MERALCO bill and the
PLDT bill of P134,400. How much is the total amount remitted to the BIR thru the
tax remittance advice (TRA)?. Single choice.
(1/1 Point)
58,240
14,784
52,000
65,200

b. Advances to contractors were made, 15% of the contract price. c. Received the
the contractor. Deductions are as follows: Recoupment of the advances, based
on % of completion Retention, 10% of the billings Withholding tax The net amount
paid to the contractor in the transaction (d) was:. Single choice.
(1/1 Point)
10,125,000
20,625,000
13,125,000
19,125,000
36.The authority issued by the DBM to agencies to cover the liquidation of their
actual obligations incurred against available allotments for availing of proceeds
from loans/grants through supplier’s credit/constructive cash.. Single choice.
(1/1 Point)
NCA
NTA
CDC
NCAA
Correct answers: NCAA
37.A government agency ordered office equipment for P200,000 through the
procurement services of DBM on April 14, 2020. The equipment was delivered to
the government agency on May 25, 2020. The asset has a useful life of 5 years. The
depreciation expense on December 31, 2020, is:. Single choice.
(1/1 Point)
22,167
25,333
23,333
28,500
38.A government agency had the following items for disbursements: Electricity
Expenses 500,000 Rent/Lease Expenses 246,400 Telephone Expenses 120,000
Office Supplies Inventory 67,200 Office Equipment 224,000 Assuming that the
government agency is a state university, the entry to remit the tax includes a. Single
choice.
(1/1 Point)
debit to Subsidy from National Government, P69,750
debit to Due to BIR, P69,750
credit to Cash-TRA. P76,350
credit to Cash-Modified Disbursement System, Regular, P76,350
Correct answers: credit to Cash-TRA. P76,350
39.The government agency that audits the general accounts of the Government,
promulgates accounting rules and regulations, and submits the annual financial
report of the Government, its subdivisions and agencies is:. Single choice.
(1/1 Point)
DBM
COA
DOF
BTr
Correct answers: COA
40.A government agency ordered office equipment for P200,000 through the
procurement services of DBM on April 15, 2020. The equipment was delivered to
the government agency on May 15, 2020. The asset has a useful life of 5 years. The
entry to record the delivery of the equipment is:. Single choice.
(0/1 Point)
Dr Office Equipment, Cr Accounts Payable
Dr Office Equipment, Cr Due from NGAs
Dr Office Equipment, Cr Cash-MDS, Regular
Dr Due from NGAS, Cr Cash-MDS, Regular
Your answer to question 40 is wrong. Correct answers: Dr Office Equipment, Cr Due from NGAs

the billings Retention, 10% of the billings Withholding tax The entry to record the
billings includes a. Single choice.
(1/1 Point)
debit to Construction in Progress-Buildings and Other Structures, P30M
debit to Construction in Progress-Buildings and Other Structures, P15M
credit to Accounts Payable, P15M
credit to Advances to Contractors, P15M
Correct answers: debit to Construction in Progress-Buildings and Other Structures, P30M
42.A serially numbered document prescribed by the DBM that should be used by
the NGAs in the remittance of withheld taxes on funds coming from the DBM..
Single choice.
(1/1 Point)
Notice of Cash Allocation
Notice of Transfer of Allocation
Tax Remittance Advice
BIR Form 1601-C
Correct answers: Tax Remittance Advice
43.Department of Finance granted cash advance for the traveling expenses of its
Department Heads to attend a convention in Davao in the amount of P500,000.
The Department Heads submitted a liquidation report & supporting documents
worth P550,000. The amount is reviewed & validated by the Accountant, what is
the credit journal entry to record the liquidation of the cash advance?. Single
choice.
(1/1 Point)
Due from Officers and Employees, P550,000
Advances to Special Disbursing Officer,500,000
Correct answers: Advances to Officers and Employees, P500,000
44.DFA issued a purchase order (PO) for the acquisition of office equipment costing
P150,000. The same was paid by check after appropriate government tax. The
obligation of P150,000 was recorded in the Registry of Allotment, Obligation, and
Disbursement- Capital Outlay (RAOD-CO). How much was the amount of MDS
check issued?. Single choice.
(1/1 Point)
8,036.71
9,375
140,625
141,963.29
Correct answers: 141,963.29
45.The debit entry to record the cash collections in a national government agency
is:. Single choice.
(1/1 Point)
Cash Local Treasury
Cash-Collecting Officer
Cash in Bank-Local Currency-Current Account
Cash-MDS, Regular
Correct answers: Cash-Collecting Officer
46.Which of the following sector got the biggest slice of the 2021 budget?. Single
choice.
(0/1 Point)
Economic Services
Defense
General Public Services
Social Services
Your answer to question 46 is wrong. Correct answers: Social Services
47.The credit entry to record the tax remittance thru the Tax Remittance Advice
(TRA) is:. Single choice.
(1/1 Point)
Cash in Bank-Local Currency, Current Account
Cash-Modified Disbursement System(MDS), Regular
Cash-Tax Remittance Advice
Due to BIR
Correct answers: Cash-Tax Remittance Advice

the billings Retention, 10% of the billings Withholding tax The amount credited to
Due to BIR was:. Single choice.
(1/1 Point)
937,500
1,875,000
1,607,142.86
0
49.The following obligations are recorded in the RAOD-MOOE, except. Single
choice.
(1/1 Point)
Interest Expenses
Rent Expenses
Office Supplies Expenses
Electricity Expenses
Correct answers: Interest Expenses
50.Unreasonable and immoderate expenses incurred in violation of ethics and

morality by one who does not have any feeling of guilt for the violation.. Single
choice.
(1/1 Point)
extravagant
irregular
unnecessary
unconscionable
Correct answers: unconscionable
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ACCO 30033 Quiz 3: Government Accounting Concepts and Problems
1. The debit journal entry to record the receipt of notice of cash allocation from DBM on the books of
a national government agency is:
a. Cash-Modified Disbursement System (MDS), Regular
b. Subsidy from National Government Cash-MDS, Regular xx
c. Cash in Bank-Local Currency, Current Account Subsidy from National Gov't xx
d. No entry
2. The following are the selected transactions of a national government agency:
Advances to contractors were made, P20% of the contract price.
Received the progress billings from the contractor, 40% completion.
Paid the amount due to the contractor. Deductions are as follows:
Recoupment of the advances, 20% of the advances
Retention, 10% of the billings
Withholding tax
The net amount paid to the contractor was: (letter d transaction)

20,000,000 [50,000,000 * 40%]
a. 12,750,000 (2,000,000) [50,000,000 * 20% * 20%]
b. 10,875,000 (2,000,000) [20,000,000 * 10%]
c. 14,000,000 (1,250,000) [20,000,000 / 1.12 * 7%]
d. 14,750,000 = 14,750,000
3. Annual authorizations for incurring obligations during a specified budget year,
a. Automatic Appropriations
b. Continuing Appropriations
c. New General Appropriations
d. Supplemental Appropriations
4. The books of accounts of National Government Agencies under the GAM shall consist of the
following, except
a. Regular Agency and National Government Books
b. Subsidiary Ledgers
c. General Journal
d. Check Disbursement Journal
5. DBM paid the following expenditures for the month of February 2020: Electricity Consumption –
P300,000; Water Consumption – P120,000; Telephone – P50,000; Internet Subscription –
P50,000 and Semi-Expendable Communication Equipment – P22,400. What was the total amount
of withheld taxes? 18,750
a. 32,500 ELECTRICITY: 300,000 / 1.12 * 0.07 = 18,750 7,500
WATER: 120,000 / 1.12 * 0.07 = 7,500 3,125
b. 33,700 TELEPHONE: 50,000 / 1.12 * 0.07 = 3,125 3,125
c. 33,900 INTERNET: 50,000 / 1.12 * 0.07 = 3,125 1,200
d. 30,575 SEMI-EXPENDABLE: 22,400 / 1.12 * 0.06 = 1,200 = 33,700
6. A national government agency purchased office supplies from a VAT-registered company for
P280,000. The agency also paid the P168,000 MERALCO bill and the PLDT bill of P56,000. How
much is the net amount paid to MERALCO?
a. 52,500
b. 157,500 168,000
c. 53,000 (10,500) [168,000 / 1.12 * 0.07]
= 157,500
d. 156,240
7. The following accounts will appear in the statement of financial position of LGUs with respect to its
general fund, except:
a. Special Education Tax Receivable
b. Real Property Tax Receivable
c. Cash in Bank-LCCA
d. Cash Local Treasury
8. This account is used to record the amount granted to the agency’s accountable officers and
employees for special purpose/time-bound undertakings to be liquidated within a specified period.
a. Advances to Officers and Employees
b. Advances for Payroll
c. Advances for Operating Expenses
d. Advances to Special Disbursing Officers
9. Collection from Taxpayers shall be presented in the statement of Cash Flows under
a. Cash Inflows from Investing Activities
b. Cash Inflows from Operating Activities
c. Cash Inflows from Financing Activities
d. Cash Outflows from Operating Activities
Recoupment of the advances, 20% of the advances
Retention, 10% of the billings CIP - Bldgs. & Other Structures 20M
Withholding tax Accounts Payable 20M
The entry to record the billings includes a 50,000,000 * 40%
a. debit to Construction in Progress-Buildings and Other Structures, P20M

b. debit to Construction in Progress-Buildings and Other Structures, P10M
c. credit to Accounts Payable, P10M
d. credit to Advances to Contractors, P10M
11. The debit entry to record the cash collections in a local government unit is:
a. Cash-MDS, Regular
Cash Local Treasury xx
b. Cash Local Treasury Real Property Tax xx
Special Education Tax xx
c. Cash-in Vault
d. Cash in Bank-Local Currency, Current Account
12. The entry to record the advances relating to payroll in an LGU includes a
a. debit to Advances to Officers and Employees
b. credit to Cash-MDS, Regular
c. debit to Advances for Payroll Advances for Payroll xx
Cash in Bank - LCCA xx
d. credit to Cash Local Treasury
13. The debit entry to record the receipt of Notice of Funding Check Issued from the DBM, together
with the credit memo from the bank for its share from internal revenue collections on the books of
the local government units Due from NGAs xx
a. Share from Internal Revenue Collections (IRA) Share from Internal Revenue xx
Collections (IRA)
b. Cash in Bank-Local Currency Current Account
c. Due from NGAs Cash in Bank - LCCA xx
Due from NGAs xx
d. Cash Local Treasury
14. A local government agency (LGU) had the following items for disbursements:
Electricity Expenses 500,000 31,250 + 22,000 + 7,500 + 3,600
Rent/Lease Expenses 246,400 + 12,000
Telephone Expenses 120,000
Due to BIR 76,350
Office Supplies Inventory 67,200
Cash in Bank - LCCA 76,350
Office Equipment 224,000
The entry to remit the tax includes a

ELECTRICITY: [500,000 / 1.12 * 7%] = 31,250
WATER: [246,400,000 / 1.12 * 7%] = 22,000
a. credit to Cash-Tax Remittance Advice, P76,350 TELEPHONE: [120,000 / 1.12 * 7%] = 7,500
b. debit to Due to BIR, P69,750 OFFICE SUPPLIES: [67,200 / 1.12 * 6%] = 3,600
OFFICE EQT: [224,000 / 1.12 * 6%] = 12,000
c. credit to Cash Local Treasury, P69,750
d. Cash in Bank, Local Currency, Current Account, P76,350
15. A municipality in the province of Cavite had the following transactions for the month of January
2020:
Recorded the estimated receivables on real property tax, P20M, and special education tax,
P20M.
Collected receivables on real property tax, P5M, and special education tax, P5M. Garbage
fees collected, P200,000.
Deposited total collections from real property taxpayers.
Remitted the share due to province and barangays for real property tax collected.
Remitted the share due to the province for special education tax collected.
The entry to record the collection from the taxpayers includes a
a. debit to Cash Local Treasury, P40.2M Cash - Local Treasury 10.2M

b. credit to Deferred Real Property Tax, P20M Real Property Tax 5M
c. debit to Cash Local Treasury, P10.2M Special Education Tax 5M
d. credit to Special Education Tax, P5M Garbage Fees 200K
Recoupment of the advances, 20% of the advances Retention,
10% of the billings
Withholding tax
The entry to record the advances includes a:
a. debit to Due from Contractors, P10M Advances to Contractors 10M

b. debit to Advances to Contractors, P50M Cash-MDS, Regular 10M
c. debit to Due from Contractors, P10M
d. credit to Cash-Modified Disbursement System (MDS), Regular, P10M
17. A taxpayer from a city in Metro Manila had the following information relating to his real property:
FMV of Land, P1,500,000; FMV of Res. House, P2,500,000. The two (2%) real property tax and
one (1%) special education taxes are both based on the assessed value of the real property. The
assessed value is 30% of the fair market value. Garbage fees amounted to P1,200. The entry to
record the collection from the taxpayer includes a:
a. debit to Cash Local Treasury, P37,200
b. debit to Cash in Bank- LCCA, P37,200 Cash Local Treasury 37,200 [24K + 12K + 1.2K]
Real Property Tax 24,000 [(1.5M + 2.5M) * 30% * 2%]
c. credit to Real Property Tax, P24,000 Special Education Tax 12,000 [(1.5M + 2.5M) * 30% * 1%]
Garbage Fees 1,200
d. debit to Cash Local Treasury, P25,200
18. Yellow DDS signed a contract for the construction of a building. The contract price is P22,400,000
(inclusive of VAT) payable in two progress billings. The advance payment to the contractor is 15%
of the total contract price, (deductible from the first billing). The retention fee is 10% of the
progress billing. The entry to record the refund of retention fee upon turnover of the building
includes a
a. debit to Guaranty/Security Deposits Payable, 2,240,000
b. debit to Guaranty/Security Deposits Payable, 1,120,000 22,400,00 * 10%
c. credit to Cash-MDS, Regular, P1,120,000 Guaranty/Security Deposits Payable 2,240,000
d. credit to Cash-MDS, Trust, P2,240,000 Cash-MDS, Regular 2,240,000
19. Authorizations programmed annually or for some other period prescribed by law, by virtue of
outstanding legislation that does not require periodic action by Congress.
a. Automatic Appropriations
b. Continuing Appropriations
c. New General Appropriations
d. Supplemental Appropriations
20. A taxpayer from a city in Metro Manila had the following information relating to his real property:
FMV of Land, P1,500,000; FMV of Res. House, P2,500,000. The two( 2%) real property tax and
one (1%) special education tax are both based on the assessed value of the real property. The
assessed value is 30% of the fair market value. Garbage fees amounted to P1,200. How much is
the amount credited to the account Due to LGUs for real property tax?
a. 37,200
Real Property Tax 24,000 [1.5M + 2.5M * 30% * 2%]
b. 14,400 Due to LGU (35% + 25%) * 60%
c. 24,000 Amount credited to Due to LGU = 14,400
d. 21,600
21. A national government agency purchased office equipment on March 10, 2020, and was available
for use only on April 5, 2020. The invoice price amounted to P500,000. The estimated life of the
asset is 5 years. Determine the book value of the equipment on December 31, 2021.
a. 325,833 500,000
b. 333,750 (71,250) [(500,000 * 0.95) / 5 *9/12]
c. 335,000 (95,000)
= 333,750
d. 428,750
22. A national government agency purchased office supplies from a VAT-registered company for
P280,000. The agency also paid the P168,000 MERALCO bill and the PLDT bill of P56,000. How
much is the total amount remitted to the BIR thru the tax remittance advice (TRA) for VAT (BIR
Form 1600)?
a. 9,000 OFFICE SUPPLIES: [280,000 / 1.12 * 0.01] = 2,500
ELECTRICITY: [168,000 / 1.12 * 0.02] = 3,000
b. 29,000 TELEPHONE: [56,000 / 1.12 * 0.02] = 1,000
c. 6,500
d. 22,500 2,500 + 3,000 + 1,000
23. It contains the accounting policies in accordance with the PPSAS as well as the guidelines and
procedures to be adopted by the accountants, budget officers, cashiers, property officers,
accountable officers, and other finance personnel in recording and reporting government financial
transactions.
a. NGAS
b. GAM
c. IFRS
d. IPSAS
24. A national government agency purchased office equipment on March 10, 2020, and was available
for use only on April 5, 2020. The invoice price amounted to P500,000. The estimated life of the
asset is 5 years. Determine the depreciation expense for 2020.
a. 95,000
b. 90,000
[(500,000 * 0.95) / 5 * 9/12]
c. 79,167
d. 71,250
25. Agency Yellow DDS signed a contract for the construction of the building, P22,400,000 (inclusive
of VAT) payable in two progress billings. Advance payment to the contractor is 15% of the total
contract price (deductible from the first billing) while the retention fee is 10% of the progress
billing. How much is the net amount paid by Agency Yellow DDS for the first billing?
a. 6,720,000 11,200,000 [22,400,000 / 2]
(3,360,000) [22,400,000 * 0.15]
b. 6,020,000 (1,120,000) [11,200,000 * 0.10]
c. 7,700,000 (700,000) [11,200,000 / 1.12 * 0.07]
= 6,020,000
d. 7,140,000
26. The LGUs maintains the following general types of fund, except
a. Special Education Fund
b. Fiduciary Fund
c. General Fund
d. Trust Fund
27. An air-conditioning unit for P12,500 was purchased by a national government agency. It was
immediately issued to the end-user of the equipment. The entry to record the issuance of the air-
conditioning unit to the end-user will include a:
a. debit to Semi-Expendable Machinery, 12,500
b. debit to Semi-Expendable Machinery and Equipment Expenses, 12,500
c. debit to Office Equipment, 12,500 Semi-Expendable Machinery & Equipment Expenses 12.5K
d. debit to Office Supplies Inventory, 12,500 Semi-Expendable Machinery & Equipment 12.5K
28. A comprehensive authority issued to all national government agencies, in general, to incur
obligations not exceeding an authorized amount during a specific period for the purpose indicated
therein.
a. GAA
b. GARO
c. SARO
d. NCA
2020:
P20M.
The entry to record the remittance of real property tax to the province includes a:
a. debit to Due to LGUs, 3,000,000 Due to LGUs 1,750,000

b. debit to Due to LGUs, 12,000,000 Cash in Bank - LCCA 1,750,000
c. debit to Due to LGUs, 1,750,000
5,000,000 * 0.35
d. Cash in Bank-LCCA, 4,250,000
30. Which of the following accounts is not classified as a business income?
a. School Fees
b. Permit Fees
c. Rent/Lease Income
d. Hospital Fees
31. Additional appropriation authorized by law to augment the original appropriations that proved to be
inadequate or insufficient for the particular purpose intended due to economic, political, or social
conditions.
a. Continuing Appropriations
b. Automatic Appropriations
c. Supplemental Appropriations
d. General Appropriations
32. This account is debited to recognize deposit with AGDBs of income received for which the agency
has authority to use; trust receipts authorized under specific contracts and agreements; Revolving
Fund under specific laws; and credit advice/memos received from the AGDBs.
a. Petty Cash
b. Cash in Bank-LCCA
c. Cash-Collecting Officers
d. Cash-MDS, Regular
2020:
P20M.
Determine the consolidated income of the municipality related to the transactions during the
month of January 2020.
a. 18.2M
b. 4.7M Real Property Tax 8,000,000 [20,000,000 * 40%]
c. 4.2M Special Education Tax 10,000,000 [20,000,000 * 50%]
Garbage Fees 200,000
d. 8.2M
34. Which of the following statements relating to local government units is true?
Statement 1: The local sanggunian approves the annual budget thru the issuance of an
appropriation ordinance.
Statement 2: Allotment is the authorization issued by the local chief executive to a
department/office of the local government unit, which allows it to incur obligations, for specified
amounts, within the appropriation ordinance.
a. Statement 1 only
b. Statement 2 only
c. Both statements 1 and 2
d. None of the statements
35. The following cash account titles are included in the Trial Balance of an LGU, except
a. Petty Cash
b. Cash-Collecting Officer
c. Cash Local Treasury
d. Cash in Bank-Local Currency, Current Account
ACCO 30033 Quiz 1 and 2: Government Accounting Concepts and Problems
1. Department of Public Works and Highways (DPWH) purchased Construction Equipment from a VAT-registered
supplier on March 10, 2020, and were available for use only on April 05, 2020. The invoice price (exclusive of
VAT) amounted to P2,500,000. The estimated useful life of the asset is 10 years. Depreciation is to be
considered as one month if available for use on or before the 15th of the month; however, if it is available for use
after the 15th of the month, depreciation is for the succeeding month. Assume that the company estimates a 5%
salvage value for the construction equipment. How much is the total amount credited to Due to BIR if the
equipment was paid on April 10, 2020?
a. 156,250
b. 175,000
c. 150,000
d. 133,929
2. The following account balances were taken from the books of a government agency: Salaries & Wages –
Regular, P7,950,000; PERA, P300,000; Other Supplies & Materials Expense, P412,500; Water Expenses,
P45,000; Electricity Expenses, P75,000; Telephone Expenses, P22,500; Travelling Expenses, P127,500;
Representation Allowance & Transportation Allowance (RATA), P225,000; Depreciation Expenses, P150,000;
Subsidy from National Government, P10,750,000; Interest Income, P7,500; Interest Expense, P12,000; Bank
Charges, P2,250; Retirement & Life Insurance Premiums, P795,000; PAG-IBIG Contributions, P100,000;
PHILHEALTH Contributions, P79,500; Employees Compensation Insurance Premiums, P50,000. How much is
the total amount of expenses under Personnel Services (PS)?
a. 8,674,500
b. 8,475,000
c. 8,250,000
d. 9,499,500
3. It refers to authorizations made by law for payments to be made with government funds under specified
conditions for specified purposes.
a. Appropriations
b. Allotments
c. Allocation
d. Obligation
4. The current chairman of the Commission on Audit (COA) is:
a. Emilio Aguinaldo
b. Michael Aguinaldo
c. Martin Aguinaldo
d. Marvin Aguinaldo
5. The following obligations are recorded in the RAOD-MOOE, except
a. Interest Expenses
b. Rent Expenses
c. Office Supplies Expenses
d. Electricity Expenses
6. A government agency ordered a piece of office equipment for P1,200,000 on August 20, 2020. The equipment
was delivered to the government agency on September 11, 2020, and immediately used. The asset has an
estimated useful life of 10 years. The book value of the equipment on December 31, 2021, is:
a. 1,048,000
b. 1,062,000
c. 1,087,500
d. 1,040,000
7. Department of Finance granted cash advance for the traveling expenses of its Department Heads to attend a
convention in Davao in the amount of P500,000. The Department Heads submitted a liquidation report &
supporting documents worth P550,000. The amount is reviewed & validated by the Accountant, what is the
credit journal entry to record the liquidation of the cash advance?
a. Advances to Officers and Employees, P500,000
b. Due from Officers and Employees, P550,000
c. Advances to Officers and Employees, P550,000
d. Advances to Special Disbursing Officer,500,000
Recoupment of the advances, 20% of the billings
Withholding tax
The amount credited to Due to BIR was:
a. 937,500
b. 1,875,000
c. 1,607,142.86
d. 0
9. The minimum amount of an individual asset to be recognized as PPE.
a. 25,000
b. 20,000
c. 15,000
d. 10,000
10. These are expenditures that could not pass the test of prudence or the required diligence of a good father of a
family, thereby not responsive to the exigencies of the service. These expenditures are not supportive of the
objective and mission of the agency relative to the nature of its operations.
a. Irregular
b. Excessive
c. Unnecessary
d. Extravagant
11. A national government agency purchased office supplies from a VAT-registered company for P851,200. The
agency also paid the P179,200 MERALCO bill and the PLDT bill of P134,400. How much is the total amount
remitted to the BIR thru the tax remittance advice (TRA)?
a. 58,240
b. 14,784
c. 52,000
d. 65,200
12. A government budgetary process wherein the President, through the assistance of the DBM, shall prepare &
submit to the Congress a Budget of Expenditures and Sources of Financing (BESF), including receipts from
existing and proposed revenue measures.
a. Budget Preparation and Presentation
b. Budget Authorization
c. Budget Execution
d. Budget Accountability
13. The following are the selected transactions of a national government agency for the month of March 2020:
Total Allotment for MOOE 10,000,000

Total NCA for MOOE 7,500,000
Total Obligation for MOOE 8,000,000
Total Obligations liquidated (disbursement) for MOOE 7,000,000
What is the total amount of unobligated allotment for MOOE?

a. 2,500,000
b. 1,500,000
c. 2,000,000
d. 1,000,000
14. Checks issued by the government agencies chargeable against the account of the Treasurer of the Philippines
a. Commercial checks
b. MDS checks
c. Managers Checks
d. NCA checks
15. Purchases without any bidding is an example of:
a. Irregular Expenditures
b. Unconscionable Expenditures
c. Excessive Expenditures
d. Unnecessary Expenditures
16. It signals the start of the preparation of the budget proposal.
a. Budget message
b. Budget call
c. Budget proposal
d. Budget memorandum
17. A serially numbered document prescribed by the DBM that should be used by the NGAs in the remittance of
withheld taxes on funds coming from the DBM.
a. Notice of Cash Allocation
b. Notice of Transfer of Allocation
c. Tax Remittance Advice
d. BIR Form 1601-C
18. Which of the following is not an expense under the classification Personnel Services?
a. Representation Expenses
b. Personnel Economic Relief Allowance
c. Salaries and Wages-Regular
d. Representation Allowance
19. A government agency had the following items for disbursements:
Electricity Expenses 500,000
Rent/Lease Expenses 246,400
How much is the net amount paid for rental?
a. 224,400
b. 231,000
c. 233,200
d. 221,760
20. The debit entry to record the cash collections in a national government agency is:
a. Cash Local Treasury
b. Cash-Collecting Officer
c. Cash in Bank-Local Currency-Current Account
21. Which of the following income of NGAs is classified as service income?
a. Interest Income
b. School Fees
c. Passport and VISA Fees
d. Rent/Lease Income
22. Department of Finance granted cash advance for the traveling expenses of its Department Heads to attend a
convention in Davao in the amount of P500,000. The Department Heads submitted the liquidation report and
supporting documents of cash advances and refunded P20,000 of the excess cash advance. The debit journal
entry to record the refund of excess cash advance includes
a. Cash-MDS, Regular, P20,000
b. Cash-Disbursing Officer, P20,000
c. Cash-Collecting Officer, P20,000
d. Advances to Officers and Employees, P20,000
23. The government agency that audits the general accounts of the Government, promulgates accounting rules and
regulations, and submits the annual financial report of the Government, its subdivisions and agencies is:
a. DBM
b. COA
c. DOF
d. BTr
24. All of the following are national government agencies except:
a. PUP
b. COA
c. BIR
d. GSIS
25. What is the legal basis of the COA for the performance of its function?
a. PD 1445
b. NGAS
c. IPSAS
d. 1987 Constitution
26. A national government agency purchased office supplies from a VAT-registered company for P851,200. The
agency also paid the P179,200 MERALCO bill and the PLDT bill of P134,400. How much is the net amount of
cash paid to MERALCO?
a. 16,656
b. 168,000
c. 126,000
d. 294,000
Signed a contract for the construction of the building, Contract Price-P100 Million
Advances to contractors were made, P15% of the contract price
Received the progress billings from the contractor, 30% completion
Withholding tax
The entry to record the billings includes a:
a. debit to Construction in Progress-Buildings and Other Structures, P30M
b. debit to Construction in Progress-Buildings and Other Structures, P15M
c. credit to Accounts Payable, P15M
d. credit to Advances to Contractors, P15M
28. Unreasonable and immoderate expenses incurred in violation of ethics and morality by one who does not have
any feeling of guilt for the violation.
a. Extravagant
b. Irregular
c. Unnecessary
d. Unconscionable
29. Department of Public Works and Highways (DPWH) purchased Construction Equipment from a VAT-Registered
supplier on March 10, 2020, and were available for use only on April 05, 2020. The invoice price (exclusive of
VAT) amounted to P2,500,000. The estimated useful life of the asset is 10 years. Depreciation is to be
considered as one month if available for use on or before the 15th of the month; however, if it is available for use
after the 15th of the month, depreciation is for the succeeding month. Assume that the company estimates a 5%
salvage value for the construction equipment. How much is the book value of the equipment on December 31,
2021?
a. 2,334,500
b. 2,084,375
c. 2,312,333
d. 2,064,583
30. A government agency ordered office equipment for P200,000 through the procurement services of DBM on April
15, 2020. The equipment was delivered to the government agency on May 15, 2020. The asset has a useful life
of 5 years. The entry to record the delivery of the equipment is:
a. Dr. Office Equipment, Cr. Accounts Payable
b. Dr. Office Equipment, Cr. Due from NGAs
c. Dr. Office Equipment, Cr. Cash-MDS, Regular
d. Dr. Due from NGAS, Cr. Cash-MDS, Regular
31. The credit entry to record the tax remittance thru the Tax Remittance Advice (TRA) is:
a. Cash in Bank-Local Currency, Current Account
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Tax Remittance Advice
d. Due to BIR
32. Tangible items with a service life of more than one year and not within the capitalization threshold of P15,000.
a. Semi-expendable property and equipment
b. Inventories
c. Property and Equipment
d. Investment
33. Statement I: Excessive expenditures are those incurred without restraint, judiciousness, economy& exceed the
bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious & injudicious.
Statement II: Extravagant expenditures are those incurred at an immoderate quantity or exorbitant price. These
also include expenses that exceed what is usual or proper as well as expenses that are beyond just measure or
amount.
a. Both statements are TRUE.
b. Both statements are FALSE.
c. Only statement 1 is TRUE.
d. Only statement 2 is TRUE.
34. The following are the selected transactions of a national government agency for the month of March 2020:
Total Allotment for MOOE 10,000,000

Total Obligations liquidated (disbursement) for MOOE 7,000,000
What is the total amount of unliquidated obligation for MOOE?
a. 2,500,000
b. 1,500,000
c. 2,000,000
d. 1,000,000
Withholding tax
The entry to record the advances includes a:
a. debit to Due from Contractors, P4,500,000
b. debit to Advances to Contractors, P15,000,000
c. debit to Due from Contractors, P30,000,000
d. credit to Cash-MDS), Regular, P14,062,500
36. Which of the following describes the best example of extravagant expenditures?
a. Payment of allowances & other forms of additional compensation without proper authority
b. Overpricing of purchases characterized by grossly exaggerated or inflated quotations, in excess of the
prevailing market price
c. Luxurious furnishings for government buildings
d. Grant of overtime pay for work that is not urgent in nature
37. Which of the following sector got the biggest slice of the 2021 budget?
a. Economic Services
b. Defense
c. General Public Services
d. Social Services
38. The authority issued by the DBM to agencies to cover the liquidation of their actual obligations incurred against
available allotments for availing of proceeds from loans/grants through supplier’s credit/constructive cash.
a. NCA
b. NTA
c. CDC
d. NCAA
39. A government agency ordered office equipment for P200,000 through the procurement services of DBM on April
14, 2020. The equipment was delivered to the government agency on May 25, 2020. The asset has a useful life
of 5 years. The depreciation expense on December 31, 2020, is:
a. 22,167
b. 25,333
c. 23,333
d. 28,500
40. A government agency had the following items for disbursements:
Electricity Expenses 500,000
Rent/Lease Expenses 246,400
Assuming that the government agency is a state university, the entry to remit the tax includes a:
a. debit to Subsidy from National Government, P69,750
b. debit to Due to BIR, P69,750
c. credit to Cash-TRA, P76,350
d. credit to Cash-Modified Disbursement System, Regular, P76,350
41. Under the current government accounting system, an obligation for the purchase of equipment is recorded in
the:
a. RAOD-PS
b. RAOD-FE
c. RAOD-CO
d. RAOD-MOOE
Advances to contractors were made, 15% of the contract price.
Recoupment of the advances, based on % of completion
Withholding tax
The net amount paid to the contractor in the transaction (d) was:
a. 10,125,000
b. 20,625,000
c. 13,125,000
d. 19,125,000
43. The debit entry to close the unused NCA on the books of a national government agency is
a. Subsidy from National Government
b. Cash-MDS, Regular
c. Due to National Treasury
d. Cash-Collecting Officers
44. The following cash account titles are included in the trial balance of a national government agency, except
a. Petty Cash
b. Cash-Local Treasury
c. Cash-Collecting Officer
45. Statement I: Government Accounting Manual contains the accounting policies in accordance with the PPSAS as
well as the guidelines and procedures to be adopted by the accountants, budget officers, cashiers, property
officers, accountable officers, and other finance personnel in recording and reporting government financial
transactions.
Statement II: Cash in Bank-Local Currency Current Account is debited to recognize deposits with AGDBs of
income received for which the agency has authority to use.
a. Both statements are TRUE.
b. Only Statement I is TRUE.
c. Only Statement II is TRUE.
d. Both statements are FALSE.
46. Authority issued by the Central Office of a government agency to its regional and operating units to cover the
latter’s cash requirements.
a. NCA
b. NTA
c. NCAA
d. CDC
47. The following account balances were taken from the books of a government agency: Salaries & Wages –
Regular, P7,950,000; PERA, P300,000; Other Supplies & Materials Expense, P412,500; Water Expenses,
P45,000; Electricity Expenses, P75,000; Telephone Expenses, P22,500; Travelling Expenses, P127,500;
Representation Allowance & Transportation Allowance (RATA), P225,000; Representation Expenses, P150,000;
Subsidy from National Government, P10,750,000; Interest Income, P7,500; Interest Expense, P12,000; Bank
Charges, P2,250; Retirement & Life Insurance Premiums, P795,000; PAG-IBIG Contributions, P100,000;
PHILHEALTH Contributions, P79,500; Employees Compensation Insurance Premiums, P50,000. How much is
the total amount of expenses under Maintenance & Other Operating Expenses (MOOE)?
a. 834,750
b. 870,000
c. 1,134,750
d. 832,500
48. This account is debited to record the amount advanced to officers and employees for official travel.
a. Advances for Operating Expenses
b. Due from Officers and Employees
c. Advances to Officers and Employees
d. Advances to Special Disbursing Officer
49. DFA issued a purchase order (PO) for the acquisition of office equipment costing P150,000. The same was
paid by check after appropriate government tax. The obligation of P150,000 was recorded in the Registry of
Allotment, Obligation, and Disbursement- Capital Outlay (RAOD-CO). How much was the amount of MDS check
issued?
a. 8,036.71
b. 9,375
c. 140,625
d. 141,963.29
50. Which of the following is used as the basis of a recording in the journals?
a. Journal Entry Voucher
b. Obligation Request
c. Purchase Order
d. Subsidiary Ledgers
ACCO 30033 Quiz 4: Accounting for Non-Profit Organizations
1. Account debited when reducing patient billings caused by recognition of charity patients.
a. Contractual Adjustment
b. Patient Service Revenue
c. Accounts Receivable
d. Allowance for Uncollectible Accounts
2. Pledges, which are restricted by donors, are reported as increases in restricted net assets in the statement of
activities of an NPO:
a. When the pledges are made by the donors
b. Upon receipt of the amount pledged
c. When the cash received from pledges is expended in accordance with the donor’s wishes
d. Upon transfer of the fund to unrestricted net assets
3. An entity whose primary source of revenue is made up of contributions.
a. NPOs
b. LGUs
c. NGAs
d. GOCCs
4. Government grants that require performance by the not for profit organization will be accounted for as:
a. Endowment
b. Temporarily restricted revenue
c. Unrestricted revenue
d. Refundable deposits until earned, then unrestricted revenue
5. In accordance with FASB 116, contributions of services are recognized as increases in unrestricted net assets
by a private, not for profit entity if which of the following criteria are satisfied?
I. The services received create or enhance nonfinancial assets.
II. The services require specialized skills, are provided by individuals possessing those skills, and would
typically need to be purchased if not provided by donations.
III. The services will be performed within the current fiscal year.
a. I or II
b. I or III
c. II or III
d. I, II, III
6. During the fiscal year ended June 30, 2020, a private, not-for-profit hospital, acquired equipment, with the cash
contributed by donors who restricted their contributions for this purpose. On the hospital's statement of cash
flows for the year ended June 30, 2020, the equipment acquisition should be reported in which of the following
sections?
a. Operating
b. Financing
c. Investing
7. On June 30, 2020, an alumnus of a non-profit university contributed P1,500,000 with the stipulation that the
donation is to be used for faculty development for 2021. In 2021, the university spent all the donations for
faculty development. For the year ended December 31, 2021, what was the effect of the donation on
unrestricted net assets?
a. Increase
b. Decrease
c. No effect
8. A statement that reports revenues, gains, expenses, losses, and changes in the two categories of net assets.
a. Statement of Operations
b. Statement of Financial Position
c. Statement of Activities
d. Statement of Cash Flows
9. A donation was received by an NPO specifically for research and development. The entry to record the
donation is credited to
a. Contributions Revenue – Unrestricted
b. Contributions Revenue – Restricted
c. Net Assets with Donor Restriction
d. Unrestricted Net Assets
10. A contribution is given without donor restrictions. Which fund group would this be recorded?
a. Current unrestricted fund
b. Current restricted fund
c. Loan fund
d. Endowment fund
11. The type of fund in a non-profit university which is intended for property plant and equipment:
a. Endowment fund
b. Plant fund
c. Trust fund
d. Trustee endowment fund
12. The Contractual Adjustment ledger account of a non-profit hospital is:
a. An expense account
b. A loss account
c. A contra revenue account
d. An asset account
13. With respect to a non-profit organization’s payments to beneficiaries of annuity funds and life income funds:
a. Annuity fund payments are fixed in amount; life income fund payments vary in amount.
b. Annuity fund payments vary in amount; life income fund payments are fixed in amount.
c. Payments from both annuity funds and life income funds are fixed in amount.
d. Payments from both annuity funds and life income funds vary in amount.
14. One of the characteristics of non-profit organizations that is comparable with characteristics of governmental
entities is:
a. Stewardship of resources
b. Measurement of cost expirations
c. Governance by board of directors
d. None of the given
15. The fund of a non-profit university intended for loans to students, faculty and staff is a(n):
a. Annuity fund
b. Life income fund
c. Loan fund
d. Endowment fund
16. The type of fund in a non-profit university coming from outside parties on condition that they not be spent, but
invested to yield earnings which may be spent.
a. Endowment fund
b. Trust fund
c. Plant fund
d. Agency fund
17. Courtesy Discount and Allowances of a non-profit hospital is:
a. An expense account
b. A contra revenue account
c. A loss account
d. An asset account
18. Unrestricted current fund of a private university designated by the governing board for a specific purpose in the
future should be reported as part of:
a. Board designated net assets
b. Unrestricted net assets
c. Restricted net assets
d. Term endowments
19. Statement 1: ASU 2016-14 is an enhancement, not an overhaul, of existing guidance.
Statement 2: ASU 2016-14 limits the presentation of cash flow statement to the direct method only.
d. Both statements are correct.
20. Bantay Kabataan Organization, a non-profit organization, received the following donations during the period:
January 01, 2020: Land with a fair value of P4,000,000 to be used at the discretion of the
BantayKabataan Organization.
February 15, 2020: Cash of P8,000,000 restricted for the acquisition of a truck. The truck will be used in
the Bantay Kabataan Organization’s outreach programs.
March 01, 2020: Investment in equity securities with a fair value of P2,000,000 to be held indefinitely.
Only the investment income shall be used by the organization in its current operations.
May 01, 2020: Lakbay Aral Members from various universities contributed services in a tree-planting
activity initiated by Bantay Kabataan Organization. Although the volunteers rendered their services for
free, the organization estimates that the fair value of these services would amount to P20,000.
June 30, 2020: The Bantay Kabataan Organization acquired a truck for P8,000,000 and received
dividends of P240,000 from the equity securities.
How much is the balance of the net assets without donor restrictions on December 31, 2020?
a. 4,240,000
b. 4,000,000
c. 6,020,000
d. 4,020,000
21. Bantay Kabataan Organization, a non-profit organization, received the following donations during the period:
January 01, 2020: Land with a fair value of P4,000,000 to be used at the discretion of the
BantayKabataan Organization.
February 15, 2020: Cash of P8,000,000 restricted for the acquisition of a truck. The truck will be used in
the Bantay Kabataan Organization’s outreach programs.
March 01, 2020: Investment in equity securities with a fair value of P2,000,000 to be held indefinitely.
Only the investment income shall be used by the organization in its current operations.
May 01, 2020: Lakbay Aral Members from various universities contributed services in a tree-planting
activity initiated by Bantay Kabataan Organization. Although the volunteers rendered their services for
free, the organization estimates that the fair value of these services would amount to P20,000.
June 30, 2020: The Bantay Kabataan Organization acquired a truck for P8,000,000 and received
dividends of P240,000 from the equity securities.
How much is the balance of the net assets with donor restrictions on December 31, 2020?
a. 2,240,000
b. 6,000,000
c. 10,000,000
d. 2,000,000
22. On March 5, 2020, a non-profit organization received unrestricted cash contributions of P1,000,000 and
restricted cash contributions of P600,000. All of the restricted contributions were restricted by the donor for the
purchase of equipment. During the year, equipment costing P200,000 was acquired with the restricted
contributions. How much is the increase (decrease) in net assets with donor restrictions during the year?
a. (400,000)
b. 400,000
c. 600,000
d. (200,000)
23. “No More Worries” is a private not-for-profit healthcare organization offering services for a fee. In the first
quarter of 2021, the NPO rendered health services of P3,000,000 to patients. Of this amount 60% will be
collected, 10% are courtesy discounts, 20% are contractual adjustments and the remaining 10% is estimated to
be uncollectible. How much is the net patient service revenue to be recognized by “No More Worries”?
a. 1,800,000
b. 2,100,000
c. 2,700,000
d. 3,000,000
24. A non-profit Community Hospital patient service records for June 2020 include the following amounts:
Gross patient service revenue (before charity care and contractual adjustments) 400,000
Charity care for indigent patients 40,000
Contractual adjustments 80,000
Provision for doubtful accounts 40,000
How much is the net patient service revenue?

a. 320,000
b. 360,000
c. 240,000
d. 280,000
25. A non-profit university had the following transactions in 2020:
Student tuition and other fees of P5,500,000 were assessed, of which P4,500,000 has been collected
and P100,000 is estimated to be uncollectible.
Alumni association of the university donated P1,000,000 to be used only for faculty development.
Another P1,000,000 was received from a donor, who stipulated that the contribution be invested
indefinitely and that the earnings be used for scholarships. Earnings from these investments for the year
ended December 31, 2020, amounted to P100,000.
Revenue billed for dormitories (an auxiliary enterprise) is P500,000, of which P150,000 is not yet
received.
Expenses are paid and assigned to the following: Instruction – P3,300,000; Research – P200,000;
Student services – P100,000.
Expenses related to Auxiliary enterprises of P100,000 were paid.
How much is the excess of income over expenses under educational and general revenue?
a. 1,800,000
b. 1,900,000
c. 900,000
d. 800,000
received.
How much is the excess of income over expenses under “auxiliary enterprises”?
a. 350,000
b. 250,000
c. 400,000
d. 500,000
received.
How much is the increase(decrease) in restricted net assets on the 2020 statement of activities?
a. 2,100,000
b. 1,100,000
c. 2,000,000
d. 1,900,000
28. A not for profit organization had the following classes of net assets on January 2, 2020: Net assets without
donor restrictions – P2,000,000; Net assets with donor restriction – P5,500,000. During the year ended
December 31, 2020, the following transactions occurred:
Received unconditional pledges of P1,350,000. Half of the amount was received during the year and
the balance payable in 2021.
Received P500,000 of cash donations which were restricted for research activities. During the year
ended December 31, 2020, P100,000 were expended for research.
Received P300,000 dividends and interest income earned on restricted contributions. There were no
restrictions imposed on the income and interest received.
Received conditional pledges from a donor, P1,500,000. As of December 31, 2020, the conditions were
not satisfied yet by the NPO.
Expenses paid, P500,000 (inclusive of P100,000 in no. 2)
How much is the increase (decrease) in the unrestricted net assets in the 2020 statement of activities?
a. 975,000
b. 1,075,000
c. 575,000
d. 2,575,000
How much is the balance of Restricted Net Assets on December 31, 2020?
a. 1,075,000
b. 3,575,000
c. 6,575,000
d. 3,675,000
How much is the balance of net assets for the year ended December 31, 2020?
a. 1,650,000
b. 10,650,000
c. 3,150,000
d. 9,150,000
How much is the reclassification on the statement of activities?
a. 100,000
b. 500,000
c. 600,000
d. 400,000
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sta. Maria, Bulacan Campus
ACCO 30033: Accounting for Government and Non-Profit Organizations
Quiz 3: G.A.M. for Disbursements, Inventory & PPE
Name: _____________________________ Section: __________ Date: _________ Score: ___________

General Instructions: Read the following questions very carefully and write your final answer before the number.
Cheating and any form of communication with your classmates should not be tolerated. STRICTLY NO ERASURES
ALLOWED. Final answer in pencil is also not acceptable. (NO ACRONYM PLEASE!!)
TEST 1 – MULTIPLE CHOICE THEORIES

1. According to GAM for NGAs, the establishment of petty cash fund
a. Requires the approval of the Head of the Agency.
b. Requires the approval of the Chief Accountant.
c. Requires the approval of the President of the Republic of the Philippines
d. Does not require any formal approval because petty cash funds are likely to be immaterial.
2. Entity A maintains a petty cash fund. At any given point of time, the cash on hand and the petty cash vouchers (PCV)
must be equal to the ledger balance of the petty cash fund. If these are not equal, the difference is either shortage or
overage. This system of handling petty cash fund is called
a. Impress System c. Petty Cash System
b. Fluctuating Balance System d. Imprest System
3. The “per transaction” threshold for petty cash disbursements of a government entity is
a. P 5,000.00 b. P 10,000.00 c. P 15,000.00 d. No limit
4. According to GAM for NGAs, inventories are assets, except

a. Held for sale or distribution in the ordinary course of business.
b. Held for use in the production or supply of goods and services.
c. In the process of production for sale.
d. In the form of materials or supplies to be consumed in the production process or in the rendering of services.
5. Entity B, a government entity, purchases furniture and fixtures amounting to P14,000. The entity would most likely
record the purchase as
a. Property, Plant and Equipment c. Inventory Held for Sale
b. Inventory Held for Consumption d. Semi-Expendable Property
6. Statement 1: The GAM for NGAs allows government agencies/entities to use a periodic inventory system.
Statement 2: FIFO method is not available for use by government agencies.
a. Only Statement 1 is TRUE c. Both statements are TRUE
b. Only Statement 2 is TRUE d. Both statements are FALSE
7. Entity C, a government entity, purchases relief goods which are to be held on standby, ready to be distributed when a
calamity strikes. Entity A would most likely classify goods purchased as
a. Inventory Held for Consumption c. Purchases
b. Inventory Held for Distribution d. Note disclosure will be made
8. According to GAM for NGAs, this shall be used for large numbers of items for inventory that are ordinarily
interchangeable.
a. Specific Identification
b. FIFO
c. Weighted average cost applied in a periodic inventory system
d. Weighted average cost applied in a perpetual inventory system
9. Which of the following inventories of a government entity would be subsequently measured at the lower of cost and
current replacement cost?
a. Inventories of rice that are held for sale
b. Medicines being sold by a government-owned pharmacy
c. Books to be distributed to students in public schools
d. Forest products held for sale
Page 1 of 6
10. Which of the following events or transactions would not lead to the recognition of the cost of inventory as expense?
a. The inventory is written down.
b. The inventory is distributed.
c. The inventory is consumed.
d. The inventory is exchanged.
e. None of the above
11. Accountable forms such as pre-printed forms used in government transactions are most likely to be classified by a
government entity as
a. Inventory Held for Consumption
b. Inventory Held for Distribution
c. Semi-Expendable Property
d. Not considered inventory
12. Which of the following does not result to the recognition of PPE?
a. A single purchase of equipment costing P15,000.
b. Purchases of equipment that work together as a group, individually costing P1,000 to P5,000 but with a sum total
cost of more than P15,000.
c. Bulk acquisitions of small items of PPE with aggregate cost of more than P15,000.
d. Acquisition of a building for P10,000,000 intended to be leased out under various operating leases on commercial
basis.
13. Statement 1: The capitalization threshold for items of PPE by government entities is P15,000, which is equal to the
petty cash disbursement limit.
Statement 2: Individual items of PPE with values below the capitalization threshold but work together as a group are
recognized as PPE if the total cost of the group meets the capitalization threshold.
14. Statement 1: According to GAM for NGAs, trade discounts are excluded from the initial measurement of items of PPE
but not cash discounts.
Statement 2: Item below the capitalization threshold of PPE are recognized as Semi-Expendable Property – a separate
class of PPE.
15. Statement 1: The provision for decommissioning and restoration costs of an item of PPE is subsequently measured at
amortized cost.
Statement 2: According to GAM for NGAs, government entities may choose either the cost model or revaluation
mode to subsequently measure their PPE.
16. Statement 1: Government entities normally assign items of PPE a residual value of 10% of cost.
Statement 2: Government entities recognize/record depreciation on a monthly basis.
17. A government entity derecognizes an item of PPE that is

a. Idle b. Fully Depreciated c. Unserviceable d. All of these
18. Department of Education acquires 5 motor vehicles for a package price of P10,000,000. In conjunction with the
purchase, the supplier provides a promotional item of 1 motor vehicle which is not of the same type as those acquired.
The fair value of the motor vehicles is P2,000,000. Which of the following statements is correct?
a. For individual costing purposes, the cost of each of the 5 motor vehicles acquired is P1,600,000
b. For individual costing purposes, the cost of each motor vehicle acquired is P2,000,000
c. For individual costing purposes, the cost of each motor vehicle acquired is P1,666,667
d. The promotional item is recognized as gain equal to fair value.
Page 2 of 6
19. According to GAM for NGAs, cash discounts not taken on purchases of items of PPE are
a. Included in the cost of PPE c. Ignored
b. Recognized as “Other Losses” d. Debited to the “Purchases Discount Lost” Account
20. According to GAM for NGAs, estimates of decommissioning and restoration costs of an item of PPE are (choose the
incorrect statement).
a. Included in the initial cost of the item of PPE at the present value of the estimates.
b. Credited to “Other Provisions” account at their present value.
c. Included in the initial cost of an item of PPE but not subject to subsequent depreciation, although subject to
amortization using the effective interest method.
d. Are recognized as “Other Provisions”, at present value, and subsequently measured similar to a financial liability.
TEST 2 – GAM for NGAs TRANSACTION (2 points)

PUP JPIA Manila purchased office supplies from a VAT-registered company for P851,200. The agency also paid P179,200 for
MERALCO bill and PLDT bill of P134,400.
21. How much is the total amount remittance to the BIR through Tax Remittance Advice for EWT (BIR Form 1601-E)?
a. P58,240 b. P65,200 c. P13,200 d. P52,000
22. How much is the net amount paid to MERALCO?

a. P168,448 b. P168,000 c. P126,000 d. P166,656
Department of Public Works and Highways (DPWH) purchased Construction and Heavy Equipment from a supplier on March
10, 2020 and was available for use only on April 05, 2020. The invoice price (exclusive of VAT) amounted to P2,500,000. The
estimated useful life of the asset is 10 years.
23. How much is the depreciation expense for 2020?
a. P237,500 b. P197,917 c. P178,125 d. P199,500
24. How much is the book value of the equipment on December 31, 2021?
a. P2,334,500 b. P2,084,375 c. P2,312,333 d. P2,064,583
On November 14, 2019, Department of Finance granted cash advance worth P500,000 to defray expenses relative to the official
travel of Department Heads to attend a convention in Davao City. On November 25, 2019, they submitted liquidation report and
supporting documents worth P575,000. The amount is reviewed and validated by the Chief Accountant.
25. The journal entry to recognize liquidation of cash advance includes a credit to:
a. Advances to Officers and Employees – P500,000
b. Due to Officers and Employees – P75,000
c. Advances to Officers and Employees – P575,000
d. Advances to Special Disbursing Officer – P500,000
e. Both A and B
26. Assuming they submitted liquidation report on January 05, 2020, the journal entry to recognize liquidation of cash
advance includes a debit to:
a. Traveling Expense – Local, P575,000
b. Traveling Expense – Local, P500,000
c. Accumulated Surplus/Deficit, P575,000
d. Accumulated Surplus/Deficit, P500,000
Department of National Defense (DND) ordered a defense equipment for P300,000 through procurement services of DBM on
June 15, 2020. The equipment was available & delivered by the DBM to the government agency on July 15, 2020. The asset has
an estimated useful life of 5 years.
27. The entry to recognize order/request of equipment is
a. Credit Accounts Payable, P300,000 c. Credit Cash - MDS Regular, P300,000
b. Credit Due from NGAs, P300,000 d. No entry
28. The entry to record the delivery of equipment is

a. Dr. Due from National Government Agencies (NGAs); Cr. Cash – MDS, Regular
b. Dr. Military, Police and Security Equipment; Cr. Due from National Government Agencies (NGAs)
c. Dr. Military, Police and Security Equipment; Cr. Cash – MDS, Regular
d. Dr. Military, Police and Security Equipment; Cr. Accounts Payable
29. The amount of total tax withheld by DND as Due to BIR?
a. P-0- b. P18,000 c. P21,000 d. P16,071.43
Page 3 of 6
A national government agency had the following items for disbursements:
Electricity Expenses P500,000
Rental of Real Property 280,000
30. The net amount paid to rental was:

a. P255,000 b. P262,500 c. P265,000 d. P252,000
31. The total amount remitted to the BIR through Tax Remittance Advice was:
a. P53,178.57 b. P58,700 c. P71,850 d. P79,350
The following are the selected transactions of a national government agency:

A. Signed a contract for the construction of the building, Contract Price – P100,000,000.
B. Advances to Contractors were made, 15% of the contract price.
C. Received the progress billings from the contractor, 30% completion
D. Paid the amount due to the contractor. Deductions are as follows:
Recoupment of Advances, 20% of the billings
Withholding Tax
32. How much is credited to "Due to BIR"?

a. P 937,500 b. P 1,875,000 c. P1,500,000 d. P1,285,714.29
33. How much is the net amount paid to the contractor?

a. P19,500,000 b. P20,062,500 c. P19,125,000 d. P22,125,000
34. How much is the balance of Construction in Progress – Buildings & Other Structures account?
a. P30,000,000 b. P21,000,000 c. P24,000,000 d. P27,000,000
The following are the transactions of a national government agency for the month of January 2020:
A. Receipt of NCA to cover the operating requirements for the month of January 2020, P30,000,000.
B. Payment to officers & employees for:
Salaries & Wages – Regular P18,000,000
PERA 5,100,000
Deductions:
Withholding Tax on Compensation 3,600,000
GSIS Contributions 2,160,000
PAG-IBIG Contributions 360,000
PHILHEALTH 225,000 6,345,000
Net Amount P16,755,000
C. Payment to the following suppliers & utility companies:

Invoice Amount Invoice Amount
MERALCO P450,000 MANILA WATER P300,000
PLDT 150,000 MANARA MKTG. - Office Supplies 210,000
TIP TOP CO. – Office Equip. 840,000 ESJAY CORP. – Furniture 336,000
D. Remittance of salary deductions except withholding taxes for the month of January.
E. Payment of government share:

Retirement & Life Insurance Contributions P3,000,000
PHIL-HEALTH Contributions 225,000
Employees Compensation Insurance Premiums 465,000
35. The entry to record the receipt of NCA for the month includes
a. Debit to Cash - MDS Regular, P30,000,000
b. Credit to Subsidy from National Government, P20,000,000
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c. Debit to Cash in Bank - LCCA, P30,000,000
d. Credit to Cash – Treasury/Agency Deposit, P30,000,000
e. Both A & B
36. The entry to record the advances relating with payroll in a national government agency includes
a. Debit to Due from Officers & Employees, P16,755,000.
b. Debit to Advances for Payroll, P16,755,000.
c. Debit to Advances to Officers & Employees, P23,100,000.
d. Credit to Cash in Bank, Local Currency Current Account, P16,755,000.
37. How much is the total amount of taxes withheld?

a. P3,734,839.29 b. P3,722,464.29 c. P3,742,875 d. P3,730,500
38. How much is the unused NCA for the month of January?
a. P7,039,500 b. P4,294,500 c. P6,909,000 d. P6,450,000
39. How much is the total obligations incurred for Personnel Services?
a. P27,150,000 b. P16,755,000 c. P29,895,000 d. P20,805,000
40. The total amount remitted to GSIS was

a. P5,625,000 b. P5,160,000 c. P2,160,000 d. P4,050,000
41. A national government agency received Notice of Cash Allocation (NCA) amounting to P625,000 for the year. Unused
NCA at the end of the period amounted to P6,000. A national government agency remitted taxes withheld to the BIR
amounting to P48,000 through Tax Remittance Advice (TRA). How much is the “Net Financial Assistance/Subsidy” to
be reported in the Statement of Financial Performance?
a. P-0- b. P667,000 c. P619,000 d. P571,000
42. The following transactions incurred by a National Government Agency during the period of FY 2020:
Received Notice of Cash Allocation (NCA) amounting to P750,000
Earned total revenue of P290,000 from billings and collections of unbilled income.
Incurred total expenses of P885,000.
Remitted total taxes withheld of P140,000 to the BIR through Tax Remittance Advice (TRA).
The Cash – MDS, Regular has an unused balance of P43,000 at the end of the period.
How much is the surplus (deficit) for the period?

a. (P595,000) b. P155,000 c. P252,000 d. P112,000
43. The trial balances of a national government agency show the following amounts:
Unadjusted Trial Balance – P2,753,000
Adjusted Trial Balance – P2,765,000
Statement of Financial Position (Debit Column) – P1,880,000
Statement of Financial Performance (Credit Column) – P1,137,000
How much is the surplus (deficit) for the period?

a. P252,000 b. P885,000 c. (P252,000) d. (P743,000)
44. On April 01, 2020, a national government agency purchased and delivered 20 units of Communication Equipment from
a dealer at a price of P280,000 for replacement of old units at the Conference Room of the agency. The equipment was
available for use on June 01, 2020. The equipment has a useful life of 5 years. How much is the depreciation expense
for the FY 2020?
a. P19,950 b. P15,516.67 c. P21,000 d. P-0-
The following are the selected transactions of a national government agency for the month of March 2020:
Total Allotment for MOOE P10,000,000

Total Disbursed for MOOE 7,000,000
45. How much is the unpaid obligation?

a. P2,500,000 b. P1,500,000 c. P2,000,000 d. P1,000,000
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46. How much is the unfunded allotment?
a. P2,500,000 b. P1,500,000 c. P2,000,000 d. P1,000,000
**END OF QUIZ 3**
God Bless!!
Page 6 of 6
1
GOVERNMENT ACCOUNTING
It 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 (Section 109,
PD 1445). PD No. 1445 governs the accounting system in the government.
Objectives:
1. To produce information concerning past and present condition
2. To provide a basis for guidance for future operations
3. To provide for control of the acts of public bodies and officers in the receipt, disposition and utilization of funds
and property
4. To report on the financial position and the results of operation of government agencies for the information of all
persons concerned. (Section 110, PD No. 1445)
The Philippine Budget Cycle (Budget Process / Budgetary Procedures)

1. Budget Preparation and Presentation – a government budgetary process wherein the President, through the
assistance of the Department of Budget and Management (DBM), shall prepare and submit to the Congress a
budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures.
2. Budget Legislation or Authorization - a government budgetary process which involves the enactment by the
Congress of the General Appropriations 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.
3. Budget Execution or Implementation - a government budgetary process which involves the implementation of the
general appropriations act which includes the release of revenue allotment under the supervision of Department of
Budget and Management.
4. Budget Accountability - a 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.
The Government Accounting Manual (GAM)

The Commission on Audit (COA) revised the New Government Accounting System (NGAS) prescribed under COA
Circular No. 2002-02 dated June 18, 2002 because of the recent developments brought about by the Philippine Public
Financial Management Reforms and significant changes in the field of accounting.
Legal Basis
The Government Accounting Manual (GAM) is prescribed by COA pursuant to Article IX-D, Section 2 par. (2) of the
1987 Constitution of the Republic of the Philippines which provides that:
“The Commission on Audit shall have exclusive authority, subject to the limitations in this Article, to define the scope of
its audit and examination, establish the techniques and methods required therefor, 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".
Coverage
This Manual presents the basic accounting policies and principles in accordance with the Philippine Public Sector
Accounting Standards (PPSAS) adopted thru COA Resolution No. 2014-003 dated January 24, 2014 and other pertinent
laws, rules and regulations. It includes the Revised Chart of Accounts (RCA) prescribed under COA Circular No. 2013-
002 dated January 30, 2013, as amended; the accounting procedures, books, registries, records, forms, reports, and
financial statements; and illustrative accounting entries. It shall be used by all National Government Agencies (NGAs) in
the:
a. preparation of the general purpose financial statements in accordance with the PPSAS and other financial reports
as may be required by laws, rules and regulations; and
b. reporting of budget, revenue and expenditure in accordance with laws, rules and regulations.
Objective of the Manual

The Manual aims to update the following:
a. standards, policies, guidelines and procedures in accounting for government funds and property;
b. coding structure and accounts; and
c. accounting books, registries, records, forms, reports and financial statements.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES – STA. MARIA, BULACAN CAMPUS

COLLEGE OF ACCOUNTANCY
ACCO 30033 – ACCOUNTING FOR GOVERNMENT & NON PROFIT ORGANIZATIONS
GOVERNMENT ACCOUNTING MANUAL (GAM) DISCUSSION GUIDE
2
Basic Government Accounting and Budget Reporting Principles

Each entity shall recognize and present its financial transactions and operations conformably to the following:
a. Generally accepted government accounting principles in accordance with the PPSAS and pertinent laws, rules and
regulations;
b. Accrual basis of accounting in accordance with the PPSAS;
c. Budget basis for presentation of budget information in the financial statements (FSs) in accordance with PPSAS
24;
d. Revised Chart of Accounts prescribed by COA;
e. Double entry bookkeeping;
f. Financial Statements based on accounting and budgetary records; and
g. Fund Cluster Accounting
Components of General Purpose Financial Statements

The complete set of General Purpose Financial Statements consists of:
a. Statement of Financial Position;
b. Statement of Financial Performance;
c. Statement of Changes in Net Assets/Equity;
d. Statement of Cash Flows;
e. Statement of Comparison of Budget and Actual Amounts; and
f. Notes to the Financial Statements, comprising a summary of significant accounting policies and other explanatory
notes.
Books of Accounts and Registries

The books of accounts and registries of the National Government Entities consist of:
a. Journals
1. General Journal
2. Cash Receipts Journal
3. Cash Disbursements Journal
4. Check Disbursements Journal
b. Ledgers
1. General Ledgers
2. Subsidiary Ledgers
c. Registries
1. Registries of Revenue and Other Receipts
2. Registry of Appropriations and Allotments
3. Registries of Allotments, Obligations and Disbursements (RAOD)
4. Registries of Budget, Utilization and Disbursements (RBUD)
Allotment Class to be posted for the appropriate registry:

1. Capital Outlay (CO) – purchase of fixed assets (wherein the acquisition cost per unit is P15,000 and above) and
PPEs.
2. Maintenance and Other Operating Expenses (MOOE) – operating expenses incurred for the daily operating
requirements of a government agency (it also includes Semi – Expendable Assets whose acquisition cost per unit
is below P15,000).
3. Personnel Services (PS) – salaries, wages and other employee benefits of a government employee.
4. Financial Expenses (FE) – interest expenses, commitment charges and finance charges.
Disbursements
They constitute all cash paid constitute all cash paid out during a given period in currency (cash) or by check/Advice to
Debit the Account (ADA). It may also mean the settlement of government payables/obligations by cash, check or ADA. It
shall be covered by Disbursement Voucher / Petty Cash Voucher (PCV) / Payroll.
The different modes of disbursements are as follows:

1. Checks (Modified Disbursement System or Commercial Checks). Checks shall be drawn only on duly
approved Disbursement Voucher (DV) or Payroll. These shall be used for payment of regular expenses which
3
cannot be conveniently nor practically paid using the ADA or not authorized to be paid using the Petty Cash Fund
or advances for operating expenses. Checks issued shall be reported and recorded in the books of accounts
whether released or unreleased to the respective payees. There are two types of checks being issued by
government agencies as follows:
a. Modified Disbursement System (MDS) Checks – are checks issued by government agencies chargeable
against the account of the Treasurer of the Philippines, which are maintained with different MDS-Government
Servicing Banks [GSBs] (i.e. LandBank of the Philippines)
b. Commercial Checks – are checks issued by NGAs chargeable against the Agency Checking Account with
GSBs. These shall be covered by income/receipts authorized to be deposited with AGDBs.
2. Cash. Cash disbursements constitute payments out of cash advances granted to the regular and special disbursing
officers for personal services, petty expenses and MOOE for field operating requirements. All cash payments
shall be covered by duly approved DVs/payrolls/petty cash vouchers (PCVs). The cash advances may be granted
to the cashier’s/disbursing officers/officials and employees to cover the following: salaries and wages, travels,
special time-bound undertakings and petty operating expenses.
3. List of Due and Demandable Accounts Payable – Advice to Debit Account (LDDAP – ADA)
An authorization issued by the National Government Agencies/Operating Units appearing in the lower portion of
the List of Due and Demandable Accounts Payable – Advice to Debit Account (LDDAP-ADA). It serves as
instruction to the Modified Disbursement System, Government Servicing Banks (MDS-GSBs) to debit a specified
amount from its available NCA balance under regular MDS sub-account for payment of creditors/payees through
the Expanded Modified Direct Payment Scheme (ExMDPS). The following are excluded from the
implementation of ExMDPs:
a. Payment of Terminal Leave and Retirement Gratuity (TL/RG) benefits which is governed by Republic Act
No. 10154 as implemented by CSC Resolution No.1300237 and Budget Circular No. 2013-1;
b. Remittance of social insurance premium contributions to government corporations, such as GSIS,
PHILHEALTH, and HDMF;
c. Payment of Accounts Payable to utility companies, such as: supplier of petroleum, oil and lubricants, water,
illumination and power services, telephone, internet and other communication services; and
d. Other payables which cannot be conveniently nor practicably paid using the ADA.
4. Tax Remittance Advice (TRA). The Tax Remittance Advice (TRA) refers to a serially-numbered document
prescribed by the DBM that should be used by the NGAs in the remittance of withheld taxes on funds coming
from DBM.
5. Foreign-based Government Agencies through Cash Disbursement Ceiling (CDC). It is an authorization

issued by the DBM to DFA and other agencies with foreign posts to utilize their collections retained by their
Foreign Service Posts (FSPs) to cover operating requirements, but not to exceed the released allotment to the said
post. (National Budget Circular No. 535 dated December 29, 2011).
6. Direct Payment Method. This type of disbursement should be covered by a Non-Cash Availment Authority
(NCAA). This mode of disbursement is made through the Journal Entry Voucher (JEV) issued by the Bureau of
Treasury (BTr) to the availing/implementing agency to record payment of goods and services made directly by the
lending institution to the supplier or contractor.
Fund Release Documents. With the adoption of the Unified Account Code Structure (UACS) and Performance Informed
Budgeting (PIB), the following are the fund release documents:
a. Obligational Authority or Allotment – the following are the documents which authorize the entity to incur
obligations:
1. General Appropriations Act Release Document (GAARD) – serves as the obligational authority for the
comprehensive release of budgetary items appropriated in the General Appropriations Act, categorized as For
Comprehensive Release (FCR).
2. Special Allotment Release Order (SARO) - covers budgetary items under For Later Release (FLR) (negative
list) in the entity submitted Budget Execution Documents (BEDs), subject to compliance of required

4
documents/clearances. Releases of allotments for Special Purpose Funds (SPFs) (e.g., Calamity Fund,
Contingent Fund, E-Government Fund, Feasibility Studies Fund, International Commitments Fund,
Miscellaneous Personnel Benefits Fund and Pension and Gratuity Fund) are also covered by SAROs.
3. General Allotment Release Order (GARO) – is a comprehensive authority issued to all national government
agencies, in general, to incur obligations not exceeding an authorized amount during a specified period for the
purpose indicated therein. It covers automatically appropriated expenditures common to most, if not all,
agencies without need of special clearance or approval from competent authority, i.e. Retirement and Life
Insurance Premium.
b. Disbursement Authority – the following documents authorize the entity to pay obligations and payables:
1. Notice of Cash Allocation (NCA) – authority issued by the DBM to central, regional and provincial offices
and operating units to cover the cash requirements of the agencies. The receipt of NCA specifies the
maximum amount of withdrawal that an entity can make from a government bank for the period indicated.
The Collecting Officer shall not issue an OR for the receipt of NCA. The journal entry to recognize the
receipt of NCA is:
Account Title UACS Code Debit Credit

Cash – Modified Disbursement System, Regular 10104040 xx
Subsidy from National Government 40301010 xx
2. Non-Cash Availment Authority (NCAA) – authority issued by the DBM to agencies to cover the liquidation of
their actual obligations incurred against available allotments for availment of proceeds from loans/grants
through supplier’s credit/constructive cash. The journal entry to recognize the receipt of NCAA is:

Accounts Payable 20101010 xx
3. Cash Disbursement Ceiling (CDC) – authority issued by DBM to the Department of Foreign Affairs (DFA)
and Department of Labor and Employment (DOLE) to utilize their income collected/retained by their Foreign
Service Posts (FSPs) to cover their operating requirements, but not to exceed the released allotment to the said
post. The journal entry to recognize collections for DFA and DOLE’s books of FSPs with corresponding
journal entry for the deposit of collections to authorized servicing bank:

Cash – Collecting Officers 10101010 xx
Passport and Visa Fees 40201120 xx
Cash in Bank – Foreign Currency, Current Account 10103020 xx

Cash – Collecting Officers 10101010 xx
4. Notice of Transfer of Allocation (NTA) – authority issued by the Central Office to its regional and operating
units to cover the latter’s cash requirements. The NTA shall be the authority of the regional and operating
units to pay their operating expenses, purchases of supplies and materials, acquisition of PPE, accounts
payable, and other authorized disbursements through the issue of MDS checks, ADA or other modes of
disbursements. The journal entry to recognize Notice of Transfer of Allocation from central office to regional
and operating units:
Cash – Modified Disbursement System, Regular 10104040 xx
ILLUSTRATIVE ACCOUNTING JOURNAL ENTRIES (NOS. 01 – 14):

1. Receipt of General Appropriations Act (GAA): PS - P6,500,000; MOOE - P7,500,000; CO - P10,000,000
Posting to the appropriate Registry of Appropriations and Allotments (RAPAL)

5
2. Receipt of Allotments from DBM: PS - P6,400,000; MOOE - P7,250,000; CO – P9,500,000

Posting to the appropriate Registry of Appropriations and Allotments (RAPAL) & Registry of Allotments,
Obligations and Disbursements (RAOD)
3. Incurrence of Obligations: PS - P6,000,000; MOOE – P6,900,000; CO – P9,400,000

Posting of Obligation Request and Status (ORS) to the appropriate Registry of Allotments, Obligations and
Disbursements (RAOD)
4. Receipt of Notice of Cash Allocation (NCA) from DBM: PS – P6,000,000; MOOE – P5,700,000; CO –
P6,500,000
Cash – Modified Disbursement System, Regular 10104040 18,200,000
Subsidy from National Government 40301010 18,200,000
5. Purchased office equipment for P6,580,000 and Office Supplies held for stock for P1,380,000 on account.

Office Equipment 10605020 P6,580,000
Office Supplies Inventory* 10404010 1,380,000
Accounts Payable 20101010 P7,960,000
*If the purchase of office supplies is directly issued to end-user, it is debited to Office Supplies Expense (50203010)
instead of Office Supplies Inventory.
6. Issuance of Office Supplies to end-user as per Requisition and Issue Slip (RIS).

Office Supplies Expense 50203010 P1,380,000
Office Supplies Inventory 10404010 1,380,000
7. Grant cash advances for Payroll for the month of February 2019: Salaries & Wages – Regular, P5,100,000;
PERA, P550,000 less deductions: Withholding Tax, P510,000; GSIS, P153,000; PAG-IBIG/HDMF, P102,000
and PHILHEALTH, P51,000.

Advances for Payroll 19901020 P4,834,000
Cash – Modified Disbursement System, Regular 10104040 P4,834,000
8. Liquidation of payroll.

Salaries & Wages - Regular 50101010 P5,100,000
Personal Economic Relief Allowance 50102010 550,000
Advances for Payroll 19901020 P4,834,000
Due to BIR 20201010 510,000
Due to GSIS 20201020 153,000
Due to PAG-IBIG 20201030 102,000
Due to PHILHEALTH 20201040 51,000
Due to BIR Computation:

Tax Rate Tax Rate
GOODS – VAT SALES GOODS – NON VAT SALES
Expanded 1% Expanded 1%
Final VAT 5% GMP / Percentage Tax 3%

6
SERVICES – VAT SALES SERVICES – NON VAT SALES

Expanded 2% Expanded 2%
Final VAT 5% GMP / Percentage Tax 3%
9. Paid the Accounts Payable for Equipment and Office Supplies, less Tax.

Due to BIR 20201010 P 426,428.57
Cash – Modified Disbursement System, Regular 10104040 7,533,571.43
[ P7,960,000 / 1.12 * ( 1% goods + 5% VAT ) = P426,428.57 ]
NOTE: When the problem is silent whether the supplier is VATABLE or NON-VATABLE entity, it is a VATABLE Entity
unless the problem states that the supplier is a NON-VATABLE entity.
Assuming the supplier is NON-VAT:

Due to BIR 20201010 P 318,400
Cash – Modified Disbursement System, Regular 10104040 7,641,600
[ P7,960,000 * ( 1% goods + 3% NONVAT ) = P318,400.00 ]
10. Paid the following less Tax: Janitorial, P1,104,000; Security Agency, P2,760,000; Water, P65,600; Electricity,
P328,000; Telephone - Landline, P56,200.

Janitorial Services 50212020 P1,104,000
Security Services 50212030 2,760,000
Water Expenses 50204010 65,600
Electricity Expenses 50204020 328,000
Telephone Expense – Landline 50205020-02 56,200
Due to BIR 20201010 P 269,612.50
Cash – Modified Disbursement System, Regular 10104040 4,044,187.50
[ P4,313,800 / 1.12 * ( 2% services + 5% VAT ) = P269,612.50 ]
11. Remittance of employee’s share (No. 6 transaction) plus the following government share:
Retirement & Life Insurance Contributions P153,000

PHILHEALTH Contributions 51,000
Employees Compensation Insurance Premiums 10,000

Due to GSIS 20201020 153,000
Due to PAG-IBIG 20201030 102,000
Retirement & Life Insurance Premiums 50103010 153,000
PAG-IBIG Contributions 50103020 102,000
PHILHEALTH Contributions 50103030 51,000
Employees Compensation Insurance Premiums 50103040 10,000
Cash – Modified Disbursement System, Regular 10104040 622,000
12. Received constructive receipt of Notice of Cash Allocation for Tax Remittance Advice (TRA).

Cash – Tax Remittance Advice 10104070 P1,206,041.07
Subsidy from National Government 40301010 P1,206,041.07

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13. Constructive Remittance to BIR of taxes withheld through Tax Remittance Advice (TRA).

Due to BIR 20201010 P1,206,041.07
Cash – Tax Remittance Advice 10104070 P1,206,041.07
14. To record the unused Notice of Cash Allocation (NCA).

Subsidy from National Government 40301010 P1,166,241.07
Cash – Modified Disbursement System, Regular 10104040 P1,116,241.07
CLASSIFICATION OF ADVANCES
1. Advances to Officers and Employees – for official travels;
2. Advances for Operating Expenses – granted to regular disbursing officer for operating expenses of operating/field
units and foreign post not maintaining complete set of books;
3. Advances for Payroll – for payment of salaries, wages and other personnel benefits; and
4. Advances to Special Disbursing Officer (SDO) – for special purpose/time-bound undertakings.
5. Advances to Contractors – for the payment of mobilization fee.
OTHER TRANSACTIONS:
1. Cash Advances
Last January 09, 2019, Mr. Balaoag granted cash advance worth P40,000 to defray expenses in connection with his
official travel to Singapore, as member of the Philippine Delegation for ASEAN Summit from January 23 – 26, 2019. He
submitted liquidation report worth P35,000 on February 26, 2019.
Grant of cash advance.

Advances to Officers and Employees 19901040 P40,000.00
Cash – Modified Disbursement System, Regular 10104040 P40,000.00
Liquidation of cash advance (if he liquidates within the current year)

Traveling Expense - Foreign 50201020 P35,000.00
(if he liquidates cash advance next year)

Accumulated Surplus/Deficit 30101010 P35,000.00
Refund of excess cash advance to the Cashiering Office.

Cash – Collecting Officer 10101010 P5,000.00
Deposit for the refund of excess cash advance to the Bureau of Treasury (BTr).
Cash – Treasury/Agency Deposit, Regular 10104010 P5,000.00
Cash – Collecting Officer 10101010 P5,000.00
At year-end, the balance of Cash – Treasury/Agency Deposit, Regular must be closed.

Accumulated Surplus/(Deficit) 30101010 P5,000.00
Cash – Treasury/Agency Deposit, Regular 10104010 P5,000.00

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2. Construction of PPE
January 20, 2019: Sign a contract for the construction of an office building. Contract price is P10,000,000
exclusive of VAT, payable in two progress billings. Advance payment to contractor is 15% of the total contract
price while retention fee is 10% of the progress billing.
Posting of Obligation Request and Status (ORS) to the appropriate Registry of Allotments, Obligations and
Disbursements (RAOD) – Capital Outlay (CO)
January 22, 2019: Paid mobilization fee to contractor.

Advances to Contractors 19902010 P1,680,000
[ P10,000,000 * 1.12 * 15% = P1,680,000 ]
February 23, 2019: Received the first progress billing from the contractor. 50% completed (net of advances).
Construction in Progress – Buildings & Other Structures 10610030 P5,600,000
Advances to Contractors 19902010 P1,680,000
Accounts Payable 20101010 3,920,000
[ P10,000,000 * 1.12 * 50% = P5,600,000 ]
February 28, 2019: Payment of first progress billing

Due to BIR 20201010 P 350,000
Guaranty/Security Deposits Payable 20401040 560,000
Cash – Modified Disbursement System, Regular 10104040 3.010.000
[ P5,600,000 / 1.12 * ( 2% services + 5% VAT ) = P350,000 ]
March 30, 2019: Received the final progress billing from the contractor
Construction in Progress – Buildings & Other Structures 10610030 P5,600,000
Accounts Payable 20101010 5,600,000
April 03, 2019: Payment of final progress billing

Due to BIR 20201010 P 350,000
Guaranty/Security Deposits Payable 20401040 560,000
Cash – Modified Disbursement System, Regular 10104040 4.690.000
April 07, 2019: Acceptance of the building.

Buildings 10604010 P11,200,000
CIP – Buildings & Other Structures 10610030 P11,200,000
April 10, 2019: Refund of retention fee.

Guaranty/Security Deposits Payable 20401040 P1,120,000
December 31, 2019: Depreciation of building (assuming the useful life is 20 years)*
Depreciation – Buildings & Other Structures 50501040-01 P399,000
Accumulated Depreciation – Buildings 10604011 P399,000
[ (P11,200,000 * 95%) / 20 * 9/12 = P399,000 ]
9
*In GAM, the residual value of PPE is 5%
3. Transaction with DBM – Procurement Service
Advance payment to DBM – Procurement Service for the purchase of Office Supplies, P100,000
Due from National Government Agencies (NGAs) 10303010 P100,000
Cash – MDS, Regular 10104040 P100,000
Delivery of Office Supplies from DBM – Procurement Service

Office Supplies Inventory 10404010 P100,000
Due from NGAs 10303010 P100,000
4. Salaries and Wages paid thru ATM.

Salaries and Wages Regular P3,500,000
PERA 1,400,000
Total P4,900,000
Less Deductions:
Withholding Tax 500,000
Life and Retirement Premium 315,000
Pag - Ibig Premium 35,000
PhilHealth Premium 60,000 910,000
Net Amount P3,990,000
Deposit for salaries and wages to be paid thru ATM

Cash in Bank – Local Currency, Current Account 10102020 P3,990,000
Payment of salaries and wages through ATM

Salaries & Wages - Regular 50101010 P3,500,000
Personal Economic Relief Allowance 50102010 1,400,000
Cash in Bank - LCCA 10102020 P3,990,000
Due to BIR 20201010 500,000
Due to GSIS 20201020 315,000
Due to PAG-IBIG 20201030 35,000
===================================NOTHING FOLLOWS===================================
#jcabillonar

POLYTECHNIC UNIVERSITY OF THE
PHILIPPINES COLLEGE OF ACCOUNTANCY
SANTA MARIA, BULACAN CAMPUS
QUIZ 3: NOT-FOR-PROFIT ORGANIZATIONS

INSTRUCTION: Choose the best answer for each number. STRICTLY NO ERASURES
ALLOWED and PROVIDE SUPPORTING COMPUTATIONS. NO SOLUTIONS, NO CREDIT.
THEORIES (40 ITEMS - 1 point each)

l. A nonprofit hospital shall prepare which of the following statements?
1. Statement of financial position Ill. Statement of changes in net assets
11. Statement of operations IV. Statement of cash flows
a. I and Il only c. I, Il and IV only

b. l, 11 and 111 only d. All of the above,
2. Which of the following statements of a private nonprofit hospital reports changes in

unrestricted, temporarily restricted and permanently restricted net assets for a time
period?
l. Statement of financial position
ll. Statement of operations
111. Statement of changes in net assets.
a. I and Il only. c. 11 and 111 only

b. I and Ill only d. 111 only.
3. The "contractual adjustment" account of a nonprofit hospital is

a. An expense account c. A loss account
b. A revenue offset account d. An asset account
4. Which of the following private nonprofit entities is required to prepare a "statement of

functional expenses" meaning by function and by natural classification?
a. Hospital c. Voluntary health and welfare organization
b. University d. Performing arts organization
5. Which of the following is required to prepare a statement of functional expenses?

a. An art museum c. A private foundation
b. A shelter for the homeless d. A public golf course
6. A voluntary health and welfare organization received a gift of new furniture having a fair
value of PI 0,000. The fumiture was carried in the donor's books at P8,000 at the date of
donation. The voluntary health and welfare organization then gives the furniture to needy
families following the flood brought about by Typhoon "Nona". How should the organization
record the receipt and distribution of this donation?
a. No entry made.
b. Recognize public support of PI 0,000 and community assistance expense
c. Make Memo entry.
d. Recognize revenue of P 10,000 and community expenditures of P 10,000
7. Which entry should be the correct entry to record pledges of P200,000 to a public television
fundraiser? The public television organization estimates that 5% of the funds will be
uncollectible.
a. Pledges Receivable P200,000
Unrestricted Net Assets — Contributions P200,000
b. Cash 200,000
c. Pledges Receivable P200,000

Provision for Uncollectible Pledges 10,000
Allowance for Uncollectible Pledges 10,000
d. Pledges Receivable 190,000
Allowance for Uncollectible Pledges 10,000
8. A law firm develops the service contracts for a voluntary health and welfare organization.
How will this action be recorded by the voluntary health and welfare organization?
a. As a restricted revenue c. As both an unrestricted revenue and as an expense
b. As an unrestricted contribution d. As both a restricted revenue and as an expense
9. For a private nonprofit organization, when is a donor's conditional promise to give
considered unconditional?
a. Only when the condition is substantially met.
b. When the possibility that the condition will not be met is remote.
c. When the conditional promise is made.
d. When the cash or other asset promised is received.
10. A conditional promise to give

a. Depends on the occurrence of a specified future and uncertain event to bind the
promisor
b. Depends only on the passage of time or demand by the promise for performance
c. When the possibility that a condition will not be met is remote.
d. Recognizes as contribution revenues and receivables in the period in which the
promise is received.
I l. Fund raising costs of voluntary health and welfare organizations are classified as:
a. Program services c. Functional expenditure
b. Supporting services d. None of the above
12. When a temporary restriction on resources of a nongovernment, not for profit entity is met
by the incurrence of an expense for the restricted purpose:
a. Amounts reported in the temporarily restricted net assets are classified as unrestricted
net assets.
b. The entry is a debit to expense and a credit to the program services.
c. The expense is reported in the statement of activities as an increase in unrestricted net
assets.
d. None of the above.
13. Unconditional promise to give that are collectible within one year of the financial statement
date:
a. Should be reported at the present value of the amounts expected to be collected, using
the donor's incremental borrowing rate.
b. Should be reported at their gross amount
c. Should be reported at their gross amount less allowance for uncollectible account.
d. None of the above.
14. Unconditional promise to give (pledges) of nongovernment, voluntary health and welfare
organizations are recognized as revenue and support in the period in which
a. All restrictions on pledged resources have been removed. c. Pledges resources are
expended
b. The pledges are received d. None of the above
15. In preparing statement of cash flows for nongovernment, not for profit entity, cash
contributions that are restricted for long term purposes are classified as
a. Financing activities. c. Capital and related financing activities
b. Operating activities. d. None of the above.
16. Government grants that require performance by the NPO will be accounted for as:
a. Unrestricted revenue
b. Refundable deposits until earned, then unrestricted revenue
c. Temporarily restricted revenue
d. Endowments
17. The entry to record donation for specific purpose is

a. Cash c. Cash
Restricted Support Contribution Restricted Net Asset
b. Cash d. None of the above
Unrestricted Net Asset
18. The credit entry to record dues from membership in a not for profit entity is
a. Unrestricted revenue c. Unrestricted Support - Contribution
b. Unearned Membership Dues d. None of the above
19. In the statement of cash flows of a NPO, cash flows from financing activities include:
a. Proceeds of sale from investment c. Investment in endowment
b. Cash received from donors d. None of the above
20. Under the cash flows from investing activities in the statement of cash flows of a NPO.
Which of the following is included:
a. Purchases of equipment c. Donations given
b. Payment of notes payable d. None of the above
21. In Statement of Activities of a NPO, membership donation is classified under

a. Income c. Expenditures
b. Revenues d. None of the above
22. In Statement of Activities, income from small enterprise is classified under
a. Income c. Expenditures
b. Revenues d. None of the above.
23. They provide educational services, including teaching and research

a. VHWO c. University or Colleges
b. Hospitals d. None of the above.
24. In case of universities and colleges, they are used to account for resources that are
expendable in carrying daily operations.
a. Loan funds c. Quasi endowment funds
b. Current Funds d. None of the above.
25. Statement I: Agency Fund is used to account for resources held by college or university
as custodian or custodian for student, faculty and staff.
Statement Il: It is used only for current restricted and unrestricted fund
a. I is true. c. Both statements are TRUE
b. Il is true. d. Both statements are FALSE
26. Accounting treatment offunds depends on the term of the agreement under which the
funds are established.
a. Quasi — endowment c. Loan fund
b. Unexpended plantd. None of the above
27. Statement I: In an annuity fund, the payment to the beneficiary could vary each period.
Statement Il: In a life income fund, the payment is a fixed amount each period.
a. Statement I is true. c. Both statements are true.
b. Statement Il is hue. d. Both statements are false.
28. The journal entry to record tuition fees earned under unrestricted current fund is
a. Cash c. Accounts Receivable
Accounts Receivable Educational and General
Revenue
Educational and General Revenue Allowance for Uncoll.
Accounts
Educational and General Expense
Accounts Payable
29. Which of the following is NOT a source of revenue of a university or college?

a. Tuition fees c. Private gifts, grants and contracts
b. Endowment Income d. None of the above.
30. The credit entry to record the mandatory transfer of funds for the retirement of liabilities of
a college or university is:
a. Mandatory transfer c. Accounts Receivable
b. Due to Plant Fund for retirement of liabilities d. None of the Above
31. The ______ includes revenue from the provision of facilities and services to faculty, staff
and students.
a. Service Department Activities c. Revenue of Auxiliary Enterprise
b. Revenue of Restricted Current Funds Group d. None of the above
32. The accounting records for _____ are normally maintained on a cost-reimbursement
basis. No revenues or expenditures are recorded for this.
a. Service Department Activities. c. Revenue of Auxiliary Enterprise
b. Revenue of Restricted Current Funds Group d. None of the above
33. The following are the expenditures incurred in carrying out the operation of colleges or
universities EXCEPT:
a. Instruction c. Tuition Fees
b. Academic Support d. None of the above.
34. The entry for unrestricted current fund generated from sales of goods and services that
are related incidentally to educational activities of the college or university is:
a. Accounts Receivable c. Cash/Accounts Receivable
Educational and General Revenue Educational and General Revenue
Accounts Receivable
Educational and General Revenue
35. The Sunshine University purchase equipment directly through unrestricted current funds
in the amount of P 1,500,000. The journal entry to record the transaction in unrestricted
current funds is:
a. Cash c. Educational and General Expense
Accounts Receivable Cash/Accounts Payable
Educational and General Revenue

Educational and General Expense
Accounts Payable
36. Under the Plant Fund, ___________ is used to account for resources set aside for debt
service and debt retirements related to fixed assets/PPE.
a. Investment in Plant Fund c. Renewal or Replacement Plant Fund
b. Retirement of Indebtedness Plant Fund d. None of the above
37. Statement I: The current environment in relation to medical malpractice claims has caused
insurance companies to raise premiums to health care providers.
Statement Il: It also limits the amount of risk insurance companies are willing to insure.
a. Both statements are TRUE c. Only I st statement is TRUE
b. Both statements are FALSE d. Only 2nd statement is TRUE
38. Debit entry to record the estimated claims costs and liability of medical malpractice claims
is
a. Cash — Limited in use under Malpractice Funding Arrangement
b. Medical Malpractice Costs or Administrative Services Expense
c. Estimated Malpractice Liability
d. Cash
39. Which of the following is NOT an operating expense of hospitals?

a. Provision for depreciation c. Employee and contractual allowances
b. Provision for bad debts d. Fiscal Services
40. Premium fees, which are revenues from agreement under which hospitals provide any
necessary patient services for specific fees, is also known as subscriber fees or
a. Capitation fees c. Contractual Adjustments
b. Other Operating Revenue d. None of the above
PROBLEMS (20 ITEMS -2 points each)
l. An institution for the orphaned special children received equipment as donation with an
estimated useful life of 5 years with no salvage/residual value on January 01, 2016. The
donor's cost of this asset was P40,000 and its fair value at the date of donation was
P50,000. What amount of depreciation of this asset should the institution recognize in its
year-end financial statement?
a. P10,000 c. P 8,500
b. P 8,000 d. None of the above
2. Research and Development Hospital, a private not for profit hospital, earned P250,000 of
novelty gift shop revenues and spent on research during the year ended December 31,
2014. The P50,000 spent on research was part of P75,000 contribution received during
December 2013 from a donor who stipulated that the donation be used for medical
research. Assume none of the novelty gift shop revenues were spent in 2014. For the
year ended December 31, 2014, what was the increase in unrestricted net assets from
the events occurring during 2014?
a. P300,OOO c. P250,OOO
b. P200,OOO d. P275,OOO
3. The BSA 3-1 Colleges bookstore had sales of P600,000 and purchased supplies for
P350,000. P250,000 of the supplies was used for the period. Salaries paid auxiliary
employees were P200,000. What is the credit entry to record sales related to auxiliary
enterprise?
a. Cash of P600,000 c. Auxiliary Enterprise Expense of P800,000
b. Auxiliary Enterprise Revenue of P600,000 d. None of the above
4. Using the same information in NO. 3, what is the appropriate journal entry to record the
salaries of auxiliary enterprise employees?
b. Auxiliary Enterprise Expense P200,000
Cash P200,000
c. Auxiliary Enterprise Expense P250,000

Cash P250,000
d. Cash P200,000
Accounts Receivable P200,000
e. None of the above
5. Using the same information in NO. 3, how much is the total expenditures incurred in the
operation of auxiliary enterprise?
a. P550,000 c. P600,000
b. P450,000 d. None of the above
6. Per Capitol Hospital's established rate structure, health care services revenue of
9,000,000 would have been earned for the year ended. However, only 6,750,000was
collected due to charity allowances of P1,500,000 and discounts of P750,000 to third party
payor for the year. What amount should Capitol Hospital report as net health care services
of revenue in the statement of operations?
A. 9,000,000
B. 6,750,000
C. 8,250,000
D. 7,500,000
7. Following were among the receipts recorded by Lorna Hospital
Unrestricted Gifts 1,000,000

Restricted Current Funds (expended for current operations) 500,000
Restricted Current Funds (not yet expended) 200,000
The amount that should be included in the current fund revenue is

a. 1,700,000
b. 1,500,000
c. 1,200,000
d. 1,000,000
8. VPS College, a private not-for-profit college, received the following contributions during
2013:
• P3,125,000 from CHED for faculty academic advancements starting academic year
2014.
• P625,000 from a donor who stipulated that the contribution be invested in perpetuity
that the earnings be used for renovation of the main library. As of December 31, 2013,
earnings from investment amounted to P31,250.
For the year ended December 31, 2013, what amount of these contributions should be
reported as unrestricted revenue on the statement of activities?
a. 0
b. 3,125,000
c. 3,156,250
d. 3,781,250
9. Using the same information in NO. 8, what amount of these contributions should be
reported as temporarily restricted revenue in the statement of activities on December 31,
2013?
a. 0
b. 3,125,000
c. 3,156,250
d. 3,781,250
10. QPS Hospital had the following cash receipts and disbursements for the year ended
DECEMBER 31, 2014:
Collections from patients
Contribution for an establishment of term 500,000
endowment Tuition from nursing school
Interest received from investment in permanent endowment 175,000
Dividends received from investment in term endowments 200,000
Payment of supporting expenses 750,000
Payment of program expenses
The interest received from permanent endowment is restricted by the donor for
acquisition of medical equipment.
How much is the net cash provided by operating activities?

A. 1,675,000
B. 1,875,000
C. 2,050,000
D. 2,175,000
ll. NPC University, a private not-for-profit university, had the following cash inflows during
the year ended June 30, 2014:
• P4,000,000 from students for tuition.

• P2,250,000 from a donor who stipulated that the money be invested indefinitely.
• P 1,400,000 from a donor who stipulated that the money be spent in accordance
with the wishes of NPC's governing board.
On statement of cash flows for the year ended June 30, 2014. What amount of these
cash flows should be reported as financing activities?
A. 1,400,000
B. 3,650,000
C. 5,400,000
D. 2,250,000
12. Using the same information in number 11, how much should be reported as operating
activities?
A. 1,400,000
B. 3,650,000
C. 5,400,000
D. 2,250,000
13. NGO College, a private not-for-profit college received P4,800,000 from Dr. Wu on May
25, 2016. Dr. Wu stipulated that his contribution be used to support faculty research and
book writing seminars during the fiscal year beginning on July 01, 2016. On July 15, 2016
administrators of NGO College awarded seminar and training grants totaling P3,900,000
to several faculty members in accordance with the wishes of the donor.
For the year ended June 30, 2016, NGO College should report the P4,800,000
contribution as
a. Temporarily restricted revenues on the statement of activities.
b. Unrestricted revenue on the statement of activities.
c. Temporarily restricted deferred revenue on the statement of activities.
d. An increase in fund balance on the statement of financial position.
14. YKB Hospital, a not-for-profit hospital affiliated with a religious group, reported the
following information for the year ended December 31, 2016:
Gross Patient Service rendered

Bad Debts Expense 250,000
Contractual Adjustments with 3rd party payors
Charity Care 750,000
Courtesy Allowances to hospital employees 450,000
Net patient service revenues for the hospital for the year ended December 3 1 , 20 1 6 is
A. 11,250,000
B. 10,550,000
C. 9,800,000
D. 9,550,000
15. During 2016, DTS Hospital purchased medicines for hospital use totaling P 1,000,000.
Included in the PI was an invoice of PI 00,000 that was cancelled in 2016 by the vendor
because the vendor wished to donate this medicine to DTS. The donation should be
recorded as:
a. An increase of PI 00,000 to Patient Service Revenue
b. An increase of PI 00,000 to Other Non — Operating Revenue
c. An increase of PI 00,000 to Other Operating Revenue
d. A decrease of P 100,000 to Other Non — Operating Revenue
16. During the year ended December 31, 2016 a not for profit performing arts entity received
the following donor-restricted contribution and investment income:
• Cash contribution of P 1,350,000 to be permanently invested
• Cash dividends and interest of P75,000 to be used for the acquisition of theatre
equipment.
As a result of these cash receipts, the statement of cash flows for the year ended
December 3 1, 2016, would report an increase of:
a. P1,425,000 from operating activities
b. P 1,425,000 from financing activities
c. P75,000 from operating activities and an increase of P 1,350,000 from financing
activities
d. P 1,350,000 from operating activities and an increase of P75,000 from financing
activities
17. The Cure, a not-for-profit hospital reported the following information for the year ended
December 3 1, 2016:
Revenue from pharmacy/drugstore P
Amounts charged/billed to patients 750,000
2,400,000
Bad Debts Expense 10,000
Revenue from gift shop/cafeteria 410,000
Contractual adjustments — 200,000

Philhealth/Medicare
Unrestricted Gifts
25,000
Charity Care 150,000
Allowances for discounts to hospital 90,000
employees
Salary expenses — medical staff 150,000
Net patient service revenues for the Cure Hospital year-end December 31, 2016 is
A. 3,270,000
B. 2,110,000
C. 1,960,000
D. 3,120,000
18. Maxicare, a not for profit organization had the following classes of net assets on January
01, 2016:
Unrestricted = P 1,000,000 Temporary = P200,000 Permanent = P2,000,000

During the fiscal year ended December 31, 2016, the following events occurred:
A. It purchased Furniture and Fixture costing P200,000 with contributions restricted for
this purpose. The contributions had been received from donors during December of
2015.
B. It received P260,000 of cash donations which were restricted for research activities.
During the year ended December 31, 2016, PI 80,000 of the contributions were
expended on research.
C. It sold investments classified in the permanently restricted class for a loss of P80,000.
Dividends and interest income earned on the investments amounted to P 140,000.
There were no restrictions on how investment income was to be used.
D. Received cash contributions of P400,000 from donors who did not place either time
or used restrictions upon their donations.
E. Expenses, excluding depreciation expense, for program services and supporting

services incurred during the year ended December 31, 2016 amounted to 520,000.
F. Depreciation expense for the ended December 31, 2016 was PI 60,000.
At December 31, 2016, how much is the amount of permanently restricted net
assets?
A. 2,140,000
B. 2,060,000
C. 2,000,000
D. 1,920,000
19. Using the same information in NO. 18, how much is the temporarily restricted net assets
at 12/31/16?
a. P260,000 c. P200,000
b. P 80,000 d. P120,000
20. Using the same information in NO. 18, how much is the reclassifications to be reported in
the statement of activities at December 31, 2016?
a. P380,000 c. P180,000
b. P200,000 d. P660,000

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ACCO 30033 Quiz 5: Cooperatives

1. Cooperatives are exempted from paying taxes.

3.Which of the following is not an expense under the classification Personnel

5.Which of the following income of NGAs is classified as service income?. Single

6.A government agency ordered a piece of office equipment for P1,200,000 on

15.A national government agency purchased office supplies from a VAT-registered

17.Department of Public Works and Highways (DPWH) purchased Construction

18.The following are the selected transactions of a national government agency: a.

19.Which of the following describes the best example of extravagant

23.Department of Public Works and Highways (DPWH) purchased Construction

26.It refers to authorizations made by law for payments to be made with

28.Purchases without any bidding is an example of:. Single choice.

29.The minimum amount of an individual asset to be recognized as PPE.. Single

30.Checks issued by the government agencies chargeable against the account of

31.Statement I: Excessive expenditures are those incurred without restraint,

34.A national government agency purchased office supplies from a VAT-registered

35.The following are the selected transactions of a national government agency: a.

41.The following are the selected transactions of a national government agency: a.

48.The following are the selected transactions of a national government agency: a.

50.Unreasonable and immoderate expenses incurred in violation of ethics and

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The net amount paid to the contractor was: (letter d transaction)

The entry to record the billings includes a 50,000,000 * 40%

a. debit to Construction in Progress-Buildings and Other Structures, P20M

The entry to remit the tax includes a

The entry to record the collection from the taxpayers includes a

a. debit to Cash Local Treasury, P40.2M Cash - Local Treasury 10.2M

a. debit to Due from Contractors, P10M Advances to Contractors 10M

a. debit to Due to LGUs, 3,000,000 Due to LGUs 1,750,000

Total Allotment for MOOE 10,000,000

What is the total amount of unobligated allotment for MOOE?

Total Allotment for MOOE 10,000,000

What is the total amount of unliquidated obligation for MOOE?

How much is the net patient service revenue?

Name: _____________________________ Section: __________ Date: _________ Score: ___________

TEST 1 – MULTIPLE CHOICE THEORIES

4. According to GAM for NGAs, inventories are assets, except

17. A government entity derecognizes an item of PPE that is

TEST 2 – GAM for NGAs TRANSACTION (2 points)

22. How much is the net amount paid to MERALCO?

28. The entry to record the delivery of equipment is

30. The net amount paid to rental was:

The following are the selected transactions of a national government agency:

32. How much is credited to "Due to BIR"?

33. How much is the net amount paid to the contractor?

C. Payment to the following suppliers & utility companies:

E. Payment of government share:

37. How much is the total amount of taxes withheld?

40. The total amount remitted to GSIS was

How much is the surplus (deficit) for the period?

How much is the surplus (deficit) for the period?

Total Allotment for MOOE P10,000,000

45. How much is the unpaid obligation?

The Philippine Budget Cycle (Budget Process / Budgetary Procedures)

The Government Accounting Manual (GAM)

Objective of the Manual

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES – STA. MARIA, BULACAN CAMPUS

Basic Government Accounting and Budget Reporting Principles

Components of General Purpose Financial Statements

Books of Accounts and Registries

Allotment Class to be posted for the appropriate registry:

The different modes of disbursements are as follows:

5. Foreign-based Government Agencies through Cash Disbursement Ceiling (CDC). It is an authorization

Name: _______________________ Section: Date: _ Score: _______