lOMoARcPSD|9405337

lOMoARcPSD|9405337
Government Accounting Quiz
No. 1

Name _____________________________________________ Score ________

Rating _______

Write True or False.

1. The COA is tasked in keeping the general ledger accounts of the government, supporting
vouchers, and other documents.
2. The COA has the sole authority in the transfer of funds from one government agency to the
other.
3. Reliability is a qualitative characteristic of information that should be reported on a timely basis.
4. Faithful representation is a qualitative characteristic being applied by an entity in
recognizing an estimated loss from the decline in the value of a property.
5. Government accounting is specialized in nature that the principles applicable to business
entities are never applicable to government entities.
6. General-purpose financial statements is prepared in accordance with the Philippine Public
Sector Accounting Standards (PPSAS)
7. 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 as zero-
based budgeting.
8. After the budget call from the DBM, the proposed budget of various agencies are submitted to
the Office of the President for review.
9. A government entity must first receive an allotment before it can incur obligations.
10. The 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.

Multiple Choice. Encircle the letter of the correct answer.

1. It encompasses the processes of analyzing, recording, classifying, summarizing and

communicating all transactions involving the receipt and disposition of government funds
and property, and interpreting the results thereof.
a. Government accounting
b. Government reporting
c. Government auditing
d. Tax accounting

2. The GAM for NGAs is promulgated by the

a. Commission on Accounting (COA)
b. Commission on Audit (COA)
c. Board of Accountancy (BOA)
d. Bureau of Internal Revenue (BIR)

3. The Commission on Audit (COA) is responsible for

a. the formulation and implementation of the national budget with the goal of attaining the
nation’s socio-economic objectives.
b. receiving and keeping national funds and managing and controlling the disbursements
thereof.
c. directly implementing the projects of the government.
d. promulgating accounting and auditing rules and regulations.

4. Which of the following is not charged with government accounting responsibility?

a. Commission on Audit
b. Bureau of Internal Revenue
c. Non-stock, non-profit private hospital
d. Department of Budget and Management
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5. Which of the following qualitative characteristics may be sacrificed when reporting information
on a timely basis?
a. Relevance
b. Reliability
c. Substance over form
d. Faithful representation

6. According to the GAM for NGAs, information has this qualitative characteristic if it can be
used to assist in evaluating past, present or future events or in confirming or correcting past
evaluations.
a. Feedback value
b. Predictive value
c. Materiality
d. Relevance

7. This refers to the comparability between the financial statements of different entities?
a. Inter-comparability
b. Intra-comparability
c. Horizontal comparability
d. Vertical comparability

8. When the substance of a transaction or event differs from its legal form, the entity should
report the transaction’s or event’s
a. substance
b. legal form
c. a trade-off between a and b
d. either a or b, based on their significance

9. The implication that users must be informed of the entity’s policies, changes to those
policies, and the effects of those changes refers to
a. Comparability
b. Completeness
c. Understandability
d. Reliability

10. In the financial reporting system of the national government, to which of the following shall an
entity reconciles its cash records?
a. Commission on Audit
b. Bureau of Treasury
c. Department of Budget and Management
d. Office of the President

11. Which of the following does not properly describe the budget process used in the
Philippines?
a. Bottom-up budgeting
b. Top-down budgeting
c. Zero-based budgeting
d. Non-incremental budgeting

12. This summarized an agency’s fiscal year plans and performance targets. It shows the
agency’s physical and financial plan, monthly cash program, estimate of monthly income,
and list of obligations that are not year due and demandable.
a. Budget Execution Documents (BEDs)
b. Special Allotment Release Order
c. Statement of Approved Budget, Utilizations, Disbursements and Balances
d. Aging of Due and Demandable Obligations
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13. Arrange the following steps according to the sequence that they appear in the budget cycle.
I. Allotment
II. Bicameral Deliberations
III. Budget Accountability Reports
IV. President’s enactment of the GAA
V. Budget hearings with the DBM

a. V, IV, II, I and III

b. V, II, IV, I and III
c. II, V, II, I and III
d. V, I, II, IV and III

14. Arrange the following steps according to the sequence that they appear in the budget cycle.
I. Allotment
II. Disbursement Authority
III. Disbursement
IV. Appropriation
V. Incurrence of obligation

a. IV, I, II, V and III

b. IV, I V, III and II
c. IV, I, V, II and III
d. IV, V, I, II and III

15. It is an authorization issued by the DBM to NGAs to incur obligations. It is also referred to as
Obligational Authority.
a. Appropriation
b. Allotment
c. Budget call
d. Budget hearings

16. It refers to the amount contracted by a duly authorized administrative officer for which the
government is held liable.
a. Appropriation
b. Allotment
c. Obligation
d. Disbursement

17. Which of the following best describes the Notice of Cash Allocation (NCA)?
a. It is a form of legislative authorization in the allocation of funds for specified purposes.
b. It is a form of authorization to a government agency to incur obligations on behalf of the
government.
c. It is a form of authorization to a government agency to make disbursements out of
government funds.
d. It is a notice received from the Congress that cash is allocated for the payment of planned
expenditures.

18. Disbursements by government entities are most commonly made through

a. MDS Checks
b. Cash
c. Petty Cash Fund
d. Credit Card

19. All disbursements of government entities must be in conformance with the law and the
a. National budget b. COA audit findings c. PPSASs d. PFRSs

20. After deliberation in both houses in the Congress are finished, a committee is formed to
harmonize any conflicts between the Representatives and Senate versions of the General
Appropriations Bill. This committee is called the
a. Adjudication Conference Committee
b. Bicaramel Conference Committee
c. Referee Conference Committee
d. Bicameral Conference Committee