GOVERNMENT MIDTERMS ON A TIME PROPORTION BASIS USING THE EFFECTIVE

INTEREST METHOD – According to the GAM for NGA’s, interest

QUIZ 1
revenue is recognized.
TRUE – all revenues shall be remitted to the BTr and included
INTER-AGENCY FUND TRANSFER – The receipt of which of the
in the special fund, unless another law specifically requires
following may not give rise to revenue by a government entity?
otherwise.
WHEN CONDITION IS MET – the national government receives
FALSE – payments to government entities in the form of checks
a foreign grant conditioned on the construction of a public
are not allowed.
infrastructure. According to the GAM for NGAs, when does the
FALSE – revenues of a government entity arise from exchange national government recognize revenue from the grant?
transactions only.
UNDERTAKING OF A TAXABLE ACTIVITY – the taxable event for
FALSE – According to the GAM for NGAs, revenue from Value added tax (VAT) is the.
exchange transactions are measured at the amount of cash
received.

TRUE – when cash flows are deferred, the fair value of the
consideration receivable is its present value.

TRUE – the constructive remittance of taxes withheld through

the TRA gives rise to the recognition of revenue.

TRUE – according to the GAM for NGAs, the receipt of

concessionary loans by government entities may give rise to
revenue recognition.

TRUE – the taxable event for income tax is the passage of time
period for which the tax is levied.

TRUE – taxes are compulsory payments, imposed on persons,

properties or activities, intended to provide revenue to the
government. Taxes include fees, fines and penalties.

TRUE - the main source of revenue for the government is

taxes.

QUIZ 2

COLLECTION OF TAXES – which of the following is a non-

exchange transaction?

SPECIAL FUND – it is a type of fund held by a government

entity that is designated for special purposes.

BY REFERENCE TO THE STAGE OF COMPLETION OF THE

CONTRACT AS THE REPORTING DATE – Entity A enters into a
long term contract to provide services. The outcome of the
transaction can be estimated reliably and the progress on the
contract can be measured with sufficient reliability. According
to the PPSAS how should Entity A recognize revenue from the
contract?

UPON COLLECTION OF THE FEE – A government entity collects

fees for the processing of certain permits. The processing of a
permit would normally take a few minutes. The processing fee
is collected upon issuance of the permit. This government
entity would normally recognize revenue from permit fees.