WEEK 1

TRUE Compared to the accounting for business entities, government accounting places greater emphasis on the
sources and utilization of government funds and the management's stewardship over government resources.
TRUE The qualitative characteristics in the GAM for NGAs are similar to the principles in the PFRSs.
TRUE Taxes are the main source of the government funds.
TRUE A unique financial reporting requirement of government entities is the use of fund cluster accounting. Under
fund cluster accounting, separate books and reports are prepared for each type of fund held by a government entity
TRUE Other sources of funds of the government include fees, borrowings. and grants from other governments and
international bodies. Taxes are the main source of the government funds.
FALSE Currently, the financial reporting of government entities is based on NGAS.
FALSE The principles used in the financial reporting of government entities are very unique that only a very few of
principles are similar to those that are applied to business entities.
FALSE The GAM for NGAs is promulgated by the Philippine Congress under the authority conferred to it under the
Philippine Constitution.
FALSE The GAM for NGAs is promulgated primarily to harmonize government accounting standards with the U.S.
GAAP.
FALSE An item is recognized as an asset if it both the "probable future economic benefits” and "reliable
measurement" criteria, regardless of whether the item is a resource controlled arising from past events only.

WEEK 2
FALSE The budget preparation in the Philippines uses a "bottom-up” approach. Under this approach, the budget
preparation starts from the highest levels of the government down to the lowest levels.
FALSE An entity prepares its budget by simply rolling-over the budget in the previous year and adjusting each line
item by 10% increment to reflect inflation. This process is described zero-based budgeting
FALSE After the budget call from the DBM, the proposed budget of various agencies are submitted immediately to
the Office the President for review
FALSE An entity can incur obligations after receiving notice of its appropriation but before receiving the allotment
FALSE Budget deliberations in the Congress start in the House of Senate.
TRUE Notice of Cash Allocation (NCA) is an authority issued by the DBM to central, regional and provincial offices
and operating units to cover their cash requirements.
TRUE Responsibility accounting greatly enhances budget accountability because managers are evaluated only in
terms of the costs or other variables that they control, and therefore, budget deviations can be readily attributed to
the managers accountable therefor.
TRUE A government entity must first receive an allotment before it can incur obligations.
FALSE A government entity can make disbursements even before it receives a disbursement authority.
FALSE Appropriation is also called obligational authority.

WEEK 3
TRUE Technically, only Journals and Ledgers are accounting records; Registries are budget records.
TRUE Separate accounting records and budget registries maintained for each cluster.
FALSE Government entities and business entities use the term “obligation” or the phrase “incurrence of obligation”
similarly
TRUE The various registries maintained by government entities primarily serve as internal control for controlling and
monitoring the conformance of actual results with the approved budget
TRUE A check disbursement is normally recorded as a credit to the “Cash-Modified Disbursement System (MDS),
Regular” account.
TRUE Both the ORS and RAOD are updated each time an obligation is incurred, a payable is recorded for the
obligation incurred, and disbursements are made to settle the recorded payables
TRUE At the end of each year, an adjustment is made to revert any unused NCA of a government entity
FALSE The GAM for NGAs requires the Collecting Officer to issue an official receipt to acknowledge the receipt of the
Notice of Cash Allocation.
TRUE The entry to record the reversion of unused NCA at the end of the period is the exact opposite of the entry
used to record the receipt of NCA.
TRUE The remittance of amounts withheld to the other government agencies, such as the BIR, BOC, GSIS, Philhealth
and PAG-IBIG, is done through the TRA

WEEK 4
TRUE The Registries of Revenue and Other Receipts (Appendices 7, 7A, 7B, 7C and 7D) shall be maintained by the
Budget Unit of NGAs to monitor the revenue and other receipts estimated/budgeted, collected and
remitted/deposited.
TRUE The Registry of Appropriations and Allotments (RAPAL) (Appendix 8) shall be maintained by NGAs to monitor
appropriations and allotments charged thereto. It shall show the original, supplemental and final budget for the year
and all allotments received charged against the corresponding appropriation.
FALSE The balance between appropriation and allotment is extracted every time an entry is made to prevent
incurrence of overdraft in appropriations. No need to separate the RAPAL by fund cluster and by Major Final Output
(MFO)/PAP/Appropriation Acts.
TRUE The Registries of Allotments, Obligations and Disbursements(RAOD) shall be maintained by the Budget Unit of
agencies to record allotments, obligations and disbursements. It shall show the allotments received for the year,
obligations incurred against the corresponding allotment and the actual disbursements made.
TRUE The balance is extracted every time an entry is made in RAOD to prevent incurrence of obligations in excess of
allotment and overdraft in disbursements against obligations incurred. The RAODs shall be maintained by
appropriation act, fund cluster, MFO/PAP, and allotment class.
TRUE The incurrence of obligations shall be made through the issuance of Obligation Request and
Status(ORS)(Appendix 11). The ORS shall be prepared by the Requesting/Originating Office supported by valid claim
documents like DVs, payrolls, purchase/job orders, itinerary of travel, etc.
TRUE The Head of the Requesting/Originating Office or his/her authorized representative shall certify in the Section
A of the ORS as to the necessity and legality of charges to the budget under his/her supervision, and validity,
propriety and legality of SDs. The Head of the Budget Unit shall certify to the availability of allotment and such is duly
obligated by signing in Section B of the ORS.
FALSE A subsidiary record to monitor a particular obligation shall be maintained by the Accounting Unit in Section C
of the ORS. It shall contain the original amount of obligation, payable (goods delivered and services rendered) and
the actual amount paid.
TRUE Adjustment of obligation incurred after the processing of the claim by the Accounting Division/Unit shall be
made through the use of Notice of Obligation Request and Status Adjustment (NORSA) (Appendix 12). The
adjustment shall be effected thru a positive entry (if additional obligation is necessary) or a negative entry (if
reduction is necessary) in the 'Obligation' column of the ORS and RAOD.
TRUE The NORSA shall be prepared by the Accounting Division/Unit after the processing of the claim which shall be
used in adjusting the original amount obligated to the actual obligations incurred in the RAOD.It shall be forwarded
by the Accounting Division/Unit to the Budget Unit to take up the adjustments of obligation in the RAOD.