Quiz – Revenue and Other Receipts & Disbursements

Name _________________________________________ Score _________ Rating _________

TRUE or FALSE. In the space before each number, write T if the statement if true and F if the statement is false.

1. Cash advances for local travel shall be liquidated within 30 days upon return to the Philippines. (T/F)
2. The authorized credit card company for Cashless Purchase Card System is Citibank.
3. Tax Remittance advice is used for actual remittance of taxes withheld to the BIR.
4. CPC purchases shall be only for specific eligible items and only with specific merchants.
5. In disbursements thru eMDS, disbursements are made directly from the accounts of the BTr maintained with the
Philippine National Bank (PNB).
6. As a general rule, when services are performed by an indeterminate number of acts over a specified time frame,
revenue is recognized on a straight-line basis over the specified time frame.
7. Revenue from non-exchange transactions are recognized on a cash basis
8. As a general rule, a government entity recognizes revenue from service income when services fees are collected.
9. Tax revenue is recognized at a gross amount and not reduced for expenses paid through the tax system
10. Services in kind are recognized as revenue in the year they are earned.
11. Goods in-kind received with conditions shall not be recognized as revenue immediately
12. A collecting officer shall immediately issue an OR upon collection of payment of any nature including the receipt of
NCA.

MULTIPLE CHOICE. Encircle the letter of your chosen answer.

1. Disbursements thru ________ is also known as Direct Payment Method

a. NCAA
b. NCA
c. CPC System
d. MDS

2. If the disallowance pertains to a prior period overstatement of office supplies expense, the journal entry would
include a credit to __________
a. Accumulated Surplus/Deficit
b. Retained Earnings
c. Office supplies expense
d. Receivables-Disallowances/Charges

3. Which of the following is not a mode of cashless disbursement? Disbursement thru ______
a. MDS check
b. ADA
c. eMDS
d. TRA

4. Who shall approve the Disbursement Vouchers?

a. Authorized Representative of Head of Agency
b. Head of Requesting Unit
c. Chief Accountant
d. Budget Officer

5. Who shall certify availability of funds before expenditures can be made?

a. Head of Accounting Unit
b. Budget Officer
c. Chief Officer
d. Sir Chief

6. _______ fund is a fund held by a government agency or public officer acting as an administrator for the fulfillment
of a condition.
a. Fiduciary
b. Special
c. Depository
d. Answer not given

7. Revenue from the sale of goods shall be recognized when all the following conditions have been satisfied except:
a. The entity transferred to the purchaser significant risks and rewards of ownership of the goods
b. The entity retains continuing managerial involvement to the degree usually associated with ownership and
effective control over the goods sold
c. The amount of revenue can be measured reliably
d. It is probable that the economic benefits or service potential associated with the transaction will flow to the
entity
e. Answer not given
8. The outcome of a transaction can be reliably estimated when all the following are satisfied except:
a. The amount of revenue can be measured reliably
b. It is probable that the economic benefits or service potential associated with the transaction will flow from the
entity
c. The stage of completion at the reporting date can be measured reliably
d. The costs incurred and the costs to complete can be measured reliably
e. Answer not given

9. Remittances of collections to the National Treasury are recorded as a debit to which of the following accounts:
a. Cash – Collecting Officers
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Treasury/Agency Deposit, Regular
d. Subsidy from National Government

10. Which of the following shall ensure that the disbursement are legal and conform to applicable rules and
regulations, before obligations can be incurred and disbursements are made?
a. Requesting Officer
b. Chief Accountant
c. Head of Agency
d. Budget Officer

11. A government entity recognizes revenue from exchange or non-exchange transactions. Which of the following
may not give rise to revenue by a government entity?
a. Receipt of military equipment as donation from a foreign government.
b. Receipt of a bequest from the king of a foreign realm.
c. Receipt of cash donation from an international organization.
d. Receipt of free trainings and seminars regarding process technology on farming from an international
organization.

12. All Disbursement Vouchers (DVs) or Payroll shall be approved by the:

a. Budget Officer
b. Chief Accountant
c. Head of Agency
d. COA Auditor

13. Which of the following shall certify the availability of allotment before obligations can be incurred and
disbursements are made?
a. Head of Agency
b. Chief Accountant
c. COA Auditor
d. Budget Officer

14. Which of the following statements regarding the disbursement of government funds is incorrect?
a. A cash advance shall not be used to encash checks or to liquidate a previous cash advance.
b. Transfer of cash advance from one officer to another is prohibited.
c. Officials and employees authorized to travel shall be granted cash advance to cover traveling expenses. The
amount granted shall be accounted for as “Due to Officers and Employees.”
d. No additional cash advance shall be given to any official or employee unless the previous cash advance given
to him is first liquidated.

15. Which of the following shall certify the availability of funds and completeness of supporting documents before the
Head of Agency or his/her authorized representative can enter into contracts that obligate the government for the
eventual payment of government funds?

a. Chief Accountant
b. COA Auditor, jointly with DBM
c. BTr
d. Budget Officer

16. According to P.D. 1445, all revenues of an entity shall be remitted to the National Treasury and included in the:
a. General Fund
b. Special Fund
c. National Fund
d. Official Fund

17. According to the GAM for NGAs, cash disbursements are made through:
a. any of these
b. cash advances to authorized personnel
c. direct cash payments by the Head of Agency to the payees
d. direct cash payment by Collecting Officers to payee
18. At the end of the period, the “Cash-Treasury/Agency Deposit, Regular” account is closed to the:
a. Subsidy from National Government account.
b. Accumulated Surplus or Deficit account.
c. This account is not closed.
d. Cash-Modified Disbursement System (MDS), Regular account.

19. Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of disbursement?
a. Accounts Payable xx
Cash-Constructive Income Remittance xx
b. Accounts Payable xx
Cash – Modified Disbursement System (MDS), Regular xx
c. Accounts Payable xx
Subsidy from National Government xx
d. None of these.

20. Which of the following is not one of the modes of disbursements by a government entity?
a. check
b. payment through Short Messaging System (SMS)
c. online payment
d. credit card

21. Entity A makes payment through bank transfer. This mode of disbursement is most likely through the use of a(an)
a. MDS check
b. Advice to Debit Account
c. Commercial check
d. Credit Card

22. According to P.D. 1445,

a. Amounts received in trust and from business-type activities of the government may be separately recorded.
b. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash receipts, the BIR
may approve, upon request, the exemption from the use of accountable forms.
c. All revenues of an entity shall be retained by the entity and included in its General Fund, unless another law
specifically allows otherwise.
d. A collecting officer shall immediately issue a temporary receipt upon collecting a payment of any nature.

23.Government entities and business entities use the same accounting treatment for all of the following except:
a. remittance of taxes withheld to the BIR
b. trade discounts allowed to customers.
c. recognizing revenue from dividends.
d. recognizing revenue from royalty agreements.

24. According to the GAM for NGAs, revenue includes only those that are received or receivable by the entity in its
own account. Accordingly, receipts on behalf of another entity are:
a. recorded as liability.
b. recorded only in the registries but not in the books of accounts.
c. recognized as revenue.
d. remitted only through the use of the TRA.

25. All of the following give rise to the recognition of revenue from nonexchange transaction except
a. donation of goods in-kind
b. fines and penalties
c. taxes
d. sale of goods

26. Which of the following does not give rise to revenue from assistance or subsidy?
a. Tax Remittance Advice
b. Inter-agency Fund Transfer
c. Notice of Cash Allocation
d. Non-Cash Availment Authority

27. Which of the following shall certify the necessity and legality of the disbursements, before obligations can be
incurred and disbursements are made?
a. Budget Officer
b. Head of Agency
c. Requesting Officer
d. Chief Accountant

28. The national government received a foreign grant conditioned on the construction of a public infrastructure. Entity
A was chosen as the implementing agency. When the national government received the grant, the entry in the BTr’s
books included a
a. credit to the “Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas” account.
b. credit to the “Subsidy from National Government” account.
c. credit to the “Other Deferred Credits” account.
d. debit to the “Cash – Modified Disbursement System (MDS), Regular” account.