ACC 111 | Accounting for Government and Non-Profit Organizations

1ST EXAMINATION Materials:

Writing Materials and Ballpen

Multiple Choice. Shade the letter in the answer sheet of the best answer.

1 Which of the following is a unique requirement of government accounting that is not required in the accounting for business
entities?
a. use of double-entry recording system c. use of accrual basis of accounting
b. use of single-entry recording system d. The presentation of budget information in the financial
statements
2 The Bureau of Treasury (BTR) is responsible for
a. promulgating accounting and auditing rules and regulations. c. receiving and keeping national funds and managing and
controlling the disbursements thereof
b. the formulation and implementation of the national budget d. directly implementing the projects of the government
with the goal of attaining the nation's socio-economic
objectives
3 Which of the following is not a qualitative characteristic of financial report is not included
a. Completeness c. Prudence
b. Variability d. Comparability
4 Promulgated primarily to harmonize the government accounting standards with international accounting standards
a. International Financial Reporting Standards c. Government Accounting Manual
b. Philippine Public Sector Accounting Standards d. International Public Sector Accounting Standards
5 Responsible for the formulation and implementation of the national budget with the goal of attaining the nation's socio-
economic objectives
a. Commission on Audit c. Bureau of Treasury
b. Department of Budget and Management d. Government agencies
6 Refers to any department, bureau or office of the national government, or any of its branches and instrumentalities, or any
political subdivision, as well as any government owned or controlled corporation (GOCC), including its subsidiaries, or other
self-governing board or commission of the government
a. Commission on Audit c. Bureau of Treasury
b. Department of Budget and Management d. Government agencies
7 Has the exclusive authority to promulgate accounting and auditing rules and regulations, keeps the general accounts of the
government, supporting vouchers, and other documents and submits financial to the President and Congress
a. Commission on Audit c. Bureau of Treasury
b. Department of Budget and Management d. Government agencies
8 Authorized to receive and keep national funds and manage and control the disbursements thereof and Maintain accounts of
financial transactions of all national government offices, agencies and instrumentalities
a. Commission on Audit c. Bureau of Treasury
b. Department of Budget and Management d. Government agencies
9 An entity prepares its budget for the upcoming year from scratch. It scrutinizes each item in the budget irrespective of
whether the item was included in the previous budget. This process is called
a. zero budgeting c. scratch budgeting
b. incremental budgeting d. zero-based budgeting
10 It is the authorization made by a legislative body to allocate funds for purposes specified by the legislative or similar
authority.
a. Appropriation c. Obligation
b. Allotment d. Disbursement
11 After deliberations in both houses in the Congress are finished, a committee is formed to harmonize any conflicts between

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 ACC 111 | Accounting for Government and Non-Profit Organizations

the Representatives and Senate versions of the General Appropriations Bill. This committee is called the
a. Congress Conference Committee c. Conflict Conference Committee
b. Bicaramel Conference Committee d. Bicameral Conference Committee
12 It contains documents which are intended to assist the Congress in their review and deliberation of the proposed national
budget
a. Budget Proposal c. President's Budget
b. Final Budget d. President's Proposal
13 Budget Deliberation by Congress is under which cycle
a. Budget Preparation c. Budget Execution
b. Budget Legislation d. Budget Accountability
14 Authorization of allotment by DBM is under which cycle
a. Budget Preparation c. Budget Execution
b. Budget Legislation d. Budget Accountability
15 Deliberation between the president and the cabinet members is under which cycle
a. Budget Preparation c. Budget Execution
b. Budget Legislation d. Budget Accountability
16 Formulated by DBM to set limit for allotment release
a. Allocation Release Program c. Allotment Release Program
b. Allotment Release Policy d. Allotment Review Program
17 Comes after the submission of agencies of their budget proposals
a. Budget Hearing c. Budget Execution
b. Budget Legislation d. Presentation to the Office of the President
I. Registries of Revenue and Other Receipts (RROR) IV. Registries of Budget, Utilization and Disbursements
(RBUD)
II. Registry of Appropriations and Allotments (RAPAL) V. Registries for Allotment and Notice of Cash Allocation
III. Registries of Allotments, Obligations and Disbursements VI. Registries for Allotment and Notice of Transfer of
(RAOD) Allocation
18 Registry/ies used when DBM authorizes incurrence of obligation
a. II & III c. II, III, V &VI
b. I, II, III, IV, V & VI d. II, III & V
19 Registry/ies used to monitor the allotments received, obligations incurred against the corresponding allotment, and the
actual disbursements made.
a. II & III c. III & IV
b. III d. II, III & IV
20 Registry/ies used to record the approved special budget and the corresponding utilizations and disbursements charged to
retained income.
a. IV c. III & IV
b. III d. II, III & IV
21 9. Registry/ies used to ensure that allotments will not exceed appropriations.
a. I c. III
b. II d. IV
22 Registry/ies used for checking of unallocated appropriations
a. I c. III
b. II d. V
23 The authorizations to support obligations for a specific purpose or project, such as multi-year construction projects which
require the incurrence of obligations even beyond the budget year.
a. New General Appropriations c. Unprogrammed Funds

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 ACC 111 | Accounting for Government and Non-Profit Organizations

b. Supplemental Appropriations d. Continuing Appropriations

24 Annual authorizations for incurring obligations during a specified budget year, as listed in the GAA
a. New General Appropriations c. Unprogrammed Funds
b. Supplemental Appropriations d. Continuing Appropriations
25 Collections which are authorized by law to be used directly by agencies concerned for their operation or specific purposes
a. Revolving Funds c. Unprogrammed Funds
b. Retained Income/Funds d. Trust Receipts
26 Receipts derived from business-type activities of departments/agencies which are authorized by law to be constituted as
such and deposited in an authorized government depository bank
a. Revolving Funds c. Unprogrammed Funds
b. Retained Income/Funds d. Trust Receipts
27 The various registries maintained by government entities are considered, technically, as
a. Books of accounts c. General Ledgers
b. Budget records d. Log books
28 The Philippine Public Sector Accounting Standards (PPSAS) shall be applied to the following except:
a. National Government Agencies c. Local Government Units
b. Government Business Enterprises d. Government Owned and/or Controlled Corporations
29 This is the point where government agencies obtain access to the government funds.
a. Appropriation c. Incurrence of Obligation
b. Allotment d. Disbursement Authority
30 Which is not a report submitted to DBM and COA
a. Monthly Report of Disbursements c. Aging of Due and Demandable Allotment
b. Quarterly Report of Revenue and Other Receipts d. Quarterly Report of Revenue and Other Receipts
31 Which is not a source of government funds
a. Taxes c. Projects
b. Borrowings d. Grants
32 Which is not charged with the government accounting responsibility?
a. Commission on Audit c. National Government Agencies
b. Department of Budget and Management d. Legislative Department
33 The disbursement is recorded in the
a. Journal and Ledger c. ORS
b. RAOD d. All of these
34 The review and approval of the national budget by the Congress of the Philippines and the formulation of an appropriate bill
a. Budget Preparation c. Budget Execution
b. Budget Legislation d. Budget Accountability
35 It provides for the ceiling or the maximum extent an agency can commit the resources of the government in the
performance of its function
a. Appropriation c. Incurrence of Obligation
b. Allotment d. Disbursement Authority
36 Pertain to various operating expenses other than employee benefits and financial expenses, e.g., travel, utilities, supplies,
etc.
a. Personnel Services c. Financial Expenses
b. Maintenance and Other Operating Expenses d. Capital Outlays
37 Pertain to all types of employee benefits, e.g., salaries, bonuses, allowances, cash gifts, etc.
a. Personnel Services c. Financial Expenses
b. Maintenance and Other Operating Expenses d. Capital Outlays

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 ACC 111 | Accounting for Government and Non-Profit Organizations

38 Account used to pay taxes

a. Cash - Modified Disbursement System c. Advances to Officers and Employees
b. Cash - Tax Remittance Advice d. Cash - Payment to Salary
39 Account used to release payment to government employees
a. Cash - Modified Disbursement System c. Advances to Officers and Employees
b. Cash - Tax Remittance Advice d. Cash - Payment to Salary
40 Account used to pay government contributions
a. Cash - Modified Disbursement System c. Advances to Officers and Employees
b. Cash - Tax Remittance Advice d. Cash - Payment to Salary

For questions 41-60

The trial balance of Entity A at the beginning of the period is shown below:

Accounts Debit Credit

Cash - Collecting Officers 10,000.00
Accounts Receivable 20,000.00
Building 900,000.00
Accumulated Depreciation - Building 300,000.00
Office Furniture 200,000.00
Accumulated Depreciation - Office Furniture 50,000.00
Accounts Payable 10,000.00
Accumulated Surplus (Deficit) 770,000.00
Total 1,130,000.00 1,130,000.00
Additional Note:

 The 10,000.00 accounts payable pertains to office supplies purchased in the prior year that were delivered but not yet paid.

Transactions during the period:

1) Entity A receives its GAA, allotment and incurs obligations as follows:

Appropriation Allotment Incurrence of Obligation

Personnel Services 1,000,000.00 850,000.00 800,000.00
Maintenance and other operating expenses 400,000.00 360,000.00 300,000.00
Capital Outlay 600,000.00 570,000.00 500,000.00
Total 2,000,000.00 1,780,000.00 1,600,000.00

2) Entity A receives the following Notice of Cash Allocation

a) For current year’s appropriation: P1,700,000.00
b) For the prior year’s accounts payable : P10,000.00

3) Disbursement (Personnel Services)

Salaries and Wages 500,000

Personal Economic Relief Allowance (PERA) 100,000
Gross Compensation 600,000
Withholding Tax (100,000)

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 ACC 111 | Accounting for Government and Non-Profit Organizations

GSIS (20,000)
Pag-IBIG (20,000)
PhilHealth (10,000)
Total Deductions (150,000)
Net 450,000
a) Payables, taxes and mandatory benefits are paid immediately

4) Disbursement (Maintenance and other operating expenses and Capital Outlay)

a) Purchased office supplies on account amounting to P50,000.00
b) Purchased office furniture on account amounting to P100,000.00
c) Paid the office supplies amounting to P40,000.00 inclusive of P4,000.00 tax
d) Paid the office furniture amounting to P80,000.00 inclusive of P8,000.00 tax
e) Paid the payable from prior period amounting to P10,000.00 inclusive of P1,000.00 tax.
f) All tax payable are paid.
g) Used P20,000.00 of office supplies
5) Billing, Collections and Remittance
a) Billed P100,000 for license fee and P50,000 for registration fee
b) Received P50,000 from license fee
c) Received P20,000 from registration fee
d) Remitted P50,000 to treasury

41 Accounts to be used in journalizing P2,000,000.00 appropriation

a. Debit Cash - Modified Disbursement System c. Credit Appropriation P2,000,000.00
P2,000,000.00
b. Budget Registries only d. Credit Subsidy from National Government P2,000,000.00
42 Accounts to be used in journalizing P2,000,000.00 appropriation
a. Debit Cash - Modified Disbursement System c. Credit Appropriation P2,000,000.00
P2,000,000.00
b. Budget Registries only d. Credit Subsidy from National Government P2,000,000.00
43 Accounts to be used in journalizing P2,000,000.00 appropriation
a. Debit Cash - Modified Disbursement System c. Credit Appropriation P2,000,000.00
P2,000,000.00
b. Budget Registries only d. Credit Subsidy from National Government P2,000,000.00
44 Unreleased appropriations
a. P1,130,000.00 c. P180,000.00
b. P220,000.00 d. P400,000.00
45 Total amount of Notice of Cash Allocation released by authorized banks
a. P1,700,000.00 c. P1,710,000.00
b. P1,780,000.00 d. P2,000,000.00
46 (For Personnel Services) Amount to be disbursed through Cash - Tax Remittance Advice
a. P50,000.00 c. P150,000.00
b. P100,000.00 d. P450,000.00
47 (For Personnel Services) Total amount to be disbursed through Cash - Modified Disbursement System
a. P500,000.00 c. P150,000.00
b. P50,000.00 d. P450,000.00
48 (For Maintenance and other operating expenses and Capital Outlay) Remaining payable for purchase of office supplies
a. P10,000.00 c. P4,000.00
b. P14,000.00 d. P6,000.00
49 (For Maintenance and other operating expenses and Capital Outlay) Total amount paid to BIR

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 ACC 111 | Accounting for Government and Non-Profit Organizations

a. P12,000.00 c. P4,000.00
b. P13,000.00 d. P8,000.00
50 (For Maintenance and other operating expenses and Capital Outlay) Total amount of remaining office supplies
a. None c. P20,000.00
b. P50,000.00 d. P30,000.00
51 (For Billing, Collections and Remittance) Total income for the period
a. P70,000.00 c. P50,000.00
b. P150,000.00 d. P80,000.00
52 (For Billing, Collections and Remittance) Credit account for remittance to treasury
a. Cash - Treasury P50,000 c. Cash - Collecting Officer P50,000.00
b. Income P50,000.00 d. Accounts Receivable P50,000.00
53 (For Unadjusted Trial Balance) Total amount of debit/credit in the unadjusted trial balance
a. P3,123,000.00 c. P2,973,000.00
b. P2,503,000.00 d. P1,300,000.00
54 (For Unadjusted Trial Balance) Credit Balance of Subsidy from National Government
a. P1,710,000.00 c. P1,823,000.00
b. P1,723,000.00 d. P1,810,000.00
55 (For Unadjusted Trial Balance) Credit balance of Accounts Payable
a. P10,000.00 c. P40,000.00
b. P30,000.00 d. P50,000.00
56 (For Unadjusted Trial Balance) Total expenses
a. P30,000.00 c. P20,000.00
b. P630,000.00 d. P620,000.00
57 (For Unadjusted Trial Balance) Total income
b. P100,000.00 c. P150,000.00
b. P50,000.00 d. P170,000.00
58 (For Unadjusted Trial Balance) Debit Balance of Cash - Modified Disbursement System
a. P1,710,000.00 c. P1,112,000.00
b. P1,093,000.00 d. None
59 (For Unadjusted Trial Balance) Debit balance of Cash - Tax Remittance Advice
a. P113,000.00 c. 112,000.00
b. P100,000.00 d. None
60 (For Unadjusted Trial Balance) Debit balance of Cash - Treasury
a. P30,000.00 c. P50,000.00
b. P80,000.00 d. None

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