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.
a. The statement is correct.
b. The statement is incorrect.
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.
a. The statement is correct.
b. The statement is incorrect.
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.
a. The statement is correct.
b. The statement is incorrect.
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.
a. The statement is correct.
b. The statement is incorrect.
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.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.
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.
a. The statement is correct.
 b. The statement is incorrect.
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.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.
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.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.
 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:
  Signed a contract for the construction of the building, Contract Price-P50 Million.
  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
10. The following are the selected transactions of a national government agency:
  Signed a contract for the construction of the building, Contract Price-P50 Million.
  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 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
16. The following are the selected transactions of a national government agency:
  Signed a contract for the construction of the building, Contract Price-P50 Million.
  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 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
29. 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 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
33. 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.

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 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.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
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
26. 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 “auxiliary enterprises”?
a. 350,000
b. 250,000
 c. 400,000
d. 500,000
27. 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 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
29. 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 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
30. 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 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
31. 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 reclassification on the statement of activities?
a. 100,000
b. 500,000
c. 600,000
d. 400,000
 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
8. The following are the selected transactions of a national government agency:
 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.
 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 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
 Telephone Expenses 120,000
 Office Supplies Inventory 67,200
 Office Equipment 224,000
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
d. Cash-MDS, Regular
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
27. The following are the selected transactions of a national government agency:
 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
 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 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 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?

a. 2,500,000
b. 1,500,000
c. 2,000,000
d. 1,000,000
35. The following are the selected transactions of a national government agency:
 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.
 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:
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
 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:
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
42. The following are the selected transactions of a national government agency:
 Signed a contract for the construction of the building, Contract Price-P100 Million.
 Advances to contractors were made, 15% of the contract price.
 Received the progress billings from the contractor, 30% completion.
 Paid the amount due to 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:
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
d. Cash-MDS, Regular
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