AVA3 GOVT ACCT

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

A

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.

D

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

B

This refers to the comparability between the financial statements of different entities?

a. Inter-comparability

b. Intra-comparability

c. Horizontal comparability

d. Vertical comparability

A

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

A

This approach to budgeting requires the justification of items in the budget irrespective of whether they

are new or carried over from the previous year.

a. Zero-based budgeting

b. Bottoms-up budgeting

c. Incremental budgeting

d. Bottoms-down budgeting

A

Which of the following would most likely comes first in the budget process?

a. Budget accountability report

b. President’s enactment of the budget

c. Presentation to the Office of the President

d. Budget Call from the DBM

D

Entity A, a government entity, receives authorization to disburse funds not to exceed ₱1B in a specified

period. This event can be described as

a. Notice of Cash Allocation

b. Allotment

c. Appropriation

B

Entity A, a government entity, receives notice that for the current year, the maximum amount it can

spend on maintenance and other operating expenses is ₱10B. This event can be described as

a. Notice of Cash Allocation

b. Allotment

c. Appropriation

d. Budgetication

C

It is a part, segment, unit or function of a government agency, headed by a manager, who is accountable

for a specified set of activities.

a. Responsibility Accounting

b. Responsibility Center

c. Budget Center

d. Call Center

D

Which of the following records is technically not considered an accounting book?

a. General Journal

b. Subsidiary Ledger

c. Cash Disbursements Journal

d. Registry of Appropriations and Allotments

D

Which of the following is (are) affected when a government entity makes disbursements to settle

recorded obligations?

a. ORS

b. RAOD

c. Journal and Ledger

d. All of these

D

This event is recorded in the books of accounts.

a. Notice of Appropriation

b. Notice of Allotment

c. Notice of Cash Appropriation

d. Closing entries

D

According to the GAM for NGAs, the Registries are (choose the incorrect statement)

a. maintained by the accounting unit of a government entity

b. maintained by fund cluster

c. maintained for each object of expenditure, whenever the registry is used for monitoring obligations

and disbursements

d. maintained by the budget division of a government entity

A

Which of the following is not a form of disbursement authority?

a. Allotment

b. Notice of Cash Allocation

c. Non-Cash Availment Authority

d. Cash Disbursement Ceiling

A

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 cash donation from an international organization.

c. Receipt of free trainings and seminars regarding process technology on farming from an

international organization.

d. Receipt of a bequest from the king of a foreign realm

C

According to P.D. 1445, all revenues of an entity shall be remitted to the National Treasury and included

in the

a. General Fund c. National Fund

b. Special Fund d. Official Fun

A

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 “Subsidy from National Government” account.

b. debit to the “Cash – Modified Disbursement System (MDS), Regular” account.

c. credit to the “Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas” account.

d. credit to the “Other Deferred Credits” account.

D

Which of the following does not give rise to revenue from assistance or subsidy?

a. Inter-agency Fund Transfer

b. Notice of Cash Allocation

c. Tax Remittance Advice

d. Non-Cash Availment Authority

A

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. recognized as revenue.

c. recorded only in the registries but not in the books of accounts.

d. remitted only through the use of the TRA.

A

Which of the following shall certify the availability of allotment before obligations can be incurred and

disbursements are made?

a. Budget Officer

b. Head of Agency

c. Chief Accountant

d. COA Auditor

A

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

a. Budget Officer

b. Head of Agency

c. Chief Accountant

d. COA Auditor

B

Payments of checks that are chargeable against the Treasury Account are credited to the

a. Modified Disbursement System Checks

b. Commercial Checks

c. Advice to Debit Account

d. Cash-Modified Disbursement System (MDS) account

D

Which of the following statements regarding the disbursement of government funds is incorrect?

a. No additional cash advance shall be given to any official or employee unless the previous cash

advance given to him is first liquidated.

b. Transfer of cash advance from one officer to another is prohibited.

c. A cash advance shall not be used to encash checks or to liquidate a previous cash advance.

d. 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

Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of disbursement?

a. Accounts Payable

Cash-Constructive Income Remittance

xxx

xxx

b. Accounts Payable

Cash – Modified Disbursement

System (MDS), Regular

xxx

xxx

c. Accounts Payable

Subsidy from National Government

xxx

xxx

d. None of these.

A

If the unadjusted balance of cash per bank statement is greater than the adjusted balance and there no

other reconciling items or errors, the difference would most certainly be caused by a

a. Credit memo c. Deposits in transit

b. Debit memo d. Outstanding checks

D

Entity A estimates a risk of loss on a recognized asset at 20%. However, Entity A can only accept a

risk of 5%. Entity A then enters into a forward contract to offset the excess risk of 15%. This process

is best described as

a. Risk management

b. Forward hedging

c. Hedge accounting

d. Process risk hedge

B