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GOVERNMENT ACCOUNTING Reviewer
Acctng For Governmental,Not-For-Profit Entities (ACT GOV)
Far Eastern University
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CHAPTER 1: Overview of Government Accounting
● The commission on Audit (COA) is responsible for - Promulgating accounting and auditing rules and regulations ● The implication that users must be informed of the entity’s policies, changes to those policies, and the effects of those changes refers to - Comparability ● According to the GAM for NGAs, information has its qualitative characteristic if it can be used to assist in evaluating past, present, or future events or in confirming or correcting past evaluations - Relevance ● It compases 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. - Government Accounting ● This refers to the comparability between the financial statements of different entities - Inter-comparability ● Which of the following qualitative characteristics may be sacrificed when reporting information on a timely basis? - Reliability ● In the financial reporting system of the national government, to which of the following shall an entity reconcile its cash records? - Bureau of Treasury ● Which of the following is not charged with government accounting responsibility? - Non-stock, non-profit, private hospital ● The GAM for NGAs is promulgated by - Commission on Audit ● When the substance of a transaction or event differs from its legal form, the entity should report transaction’s or event’s - Substance
CHAPTER 2: Budget Process
● 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 P10B. This event can be described as - APPROPRIATION ● Entity A, a government entity, receives notice that OUT OF ITS P10B approved budget for the year, Entity A can incur obligations up to P4B in then first quarter. This event can be described as - ALLOTMENT ● After receiving its obligational authority amounting 4B, Entity A enters into binding agreements for the eventual payments of a total sum of P3B. The P3B event can describe as - OBLIGATION
● Entity A, government entity, receives authorization to disburse funds not to exceed P1B in a specified period. This event can describe as - NOTICE OF ALLOCATION ● 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. - RESPONSIBILITY CENTER ● Which of the following is correct regarding zero-based budgeting? - The current year's budget is formulated without regard to the previous year's budget. ● 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. - Zero-based budgeting ● Which of the following would most likely come first in the budget process? - Budget call from the DBM ● Which of the following would most likely come last in the budget process? - Performance Review ● Which of the following approaches to budget preparation provides the best internal control? - Zero-based budgeting
CHAPTER 3: The Government Accounting Process
● This event is recorded in the books of accounts - Closing Entries ● Which of the following is (are) affected when a government entity incurs obligations? - ORS and RAOD ● Which of the following is not a form of disbursement authority? - Allotment ● According to GAM for NGASs, the Registries are ( choose the incorrect statement) - Maintained by the accounting unit of government entity ● Which of the following records is technically not considered an accounting book? - Registry of Appropriations and Allotments ● The 8-digit Revised Chart of Accounts (RCA) Codee for the account “Subsidy from National Government” starts with number - 4 ● The journal entry to record billing of revenue (eg, Communication Network Fees) is - Accounts Receivable/ > Communication Network Fees<br/> ● Which of the following accounts is most likely credited when a government entity remits its collections to the National Treasury? - Cash- Collection Officers
● According to P. 1445, - Amounts received in trust and from business-type activities of the government may be separately recorded.
CHAPTER 5: Disbursement
● According to the GAM for NGAs, cash disbursement is made through - Cash advances to authorized personnel ● Which of the following shall certify the availability of allotment before obligations can be incurred and disbursements are made? - Budget Officer ● Payments of checks that are chargeable against the Treasury Account are credited to the - Cash-Modified Disbursement System (MDS) account ● Which of the following is not one of the modes of disbursements by a government entity - Payment through Short Messaging System (SMS) ● Which of the following statements regarding the disbursement of government funds is incorrect? - Officials and employees authorized to travel shall be granted cash advance to cover travelling expenses. The amount granted shall be accounted for as “Due to officers and Employees .” ● Entity A makes payment through bank transfer. This mode of disbursement is most likely through the use of a(an) - Advice to Debit Account ● All Disbursement Vouchers (DVs) or Payroll shall be approved by the Head of Agency - Head of Agency ● Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of disbursement? - DR: Accounts Payable, CR: Subsidiary from National Government ● It is an authority issued by an agency’s Central Office to its regional and operating units to cover the latter’s cash requirements - Notice of Transfer Allocation (NTA) ● 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? - Chief Accountant
CHAPTER 6: Financial Instruments
● It is a report that is prepared for the purpose of bringing the balances of cash per records and per bank statement into agreement. — Bank Reconciliation Statement ● If the unadjusted balance 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 — Outstanding checks ● Which of the following does not qualify as cash equivalent for a government entity — Money market placement with an original term of 3 months ● 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 — Risk Management ● Which of the following may not be included as part of cash in the note disclosures? — Treasury bills acquired 3 months before maturity date ● The entry to record a disbursement from the petty cash fund is — None of these ● According to the GAM for NGAs, government entities shall prepare bank reconciliations — on a monthly basis ● Which of the following statements is incorrect regarding the accounting checks by a government entity? —Unreleased checks are physically cancelled. ● All of the following may cause the cancellation of a check drawn by a government entity except — The check is dishonored ● It is a hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such asset, liability or firm commitment, that is attributable to a particular risk and could affect surplus or deficit — Fair value hedge
CHAPTER 7: Inventories
● For government entities, inventories are assets (choose the incorrect one) ○ Used in the production of goods ● Entity A, a government entity, purchases office supplies. Entity A would most likely record the purchase
account of Entity A by directly paying the supplier the proceeds of a loan payable that is recorded in the BTr’s books. This mode of disbursement is called - Non cash availment authority ● Which of the following transactions is not recorded through a credit to the cash modified disbursement system, Regular account? - Constructive remittance of taxes withed to the BIR. ● After the budget call, budget hearings are made whereby agencies defend their proposed programs and expenditures for the upcoming year before the - DBM ● It is the expenditure authority derived from appropriation laws, government ordinances, and other related to the anticipated revenue or receipts for the budgetary period. - Approved Budget ● After the incurrence of obligations, the next step is the budget cycle is - Disbursement Authority ● The president's explanation of the country's fiscal policy..... - President Budget Message ● The basis of accounting required by the GAAM for NGAs is - Accrual basis ● A government entity remitting collections to the BTr will debit this account to record the remittance - Cash-Treasury/Agency Deposit, Regular ● This account is debited when government entities remit collections to the National Treasury - Cash Modified Disbursement System (MDS), Regular or Cash- Treasury/ Agency Deposit, Regular ● Which of the following government agencies will most li\kely to be able to obtain a disbursement authority in the form of cash isbursemnet ceiling (CDC) - DOLE ● This refers to charges for the use of cash or cash equivalents..... - Interest Income ● This refer to transaction in which one entity receives assets or services, or has liabilities extinguished..... - Exchange Transaction ● A government entity recognizes revenue form exchange or non exchange transactions. In which of the following transactions does a government entity need not recognize revenue - Receipt of Pledge ● Entity A acquires equipment from a supplier, on account. A lender settles the account of Entity A by directly paying the supplier the proceeds of a loan payable that is recorded in the BT r’s books. This mode of disbursement is called
- Non Cash Availment Authority (NCAA) ● The taxable event for Value Added Tax.... - Taxable Activity ● The GAM for NGA’s is promulgated by the - Commision on Accounting ● The commission on Audit is responsible for - Promulgating accounting and auditing rules and regulations ● This accounting concept is necessary so that uses can use information in the financial statements in noting differences and similarities.... - Comparability ● Which of the following statements is correct regarding the fundamental principles for disbursement of Public funds under P No. 1445?
- Trust funds shall be available..... ● Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of disbursement? - DR: Accounts Payable, CR: Subsidiary from National Government ● Entity A, a government entity, receives its 9M allotment.... - No journal Entry ● The journal entry to record the collection of unbilled tax revenue... - Dr). Cash Treasury/Agency Deposit,Regular. Cr.) Travel Tax ● Entity A, a government entity, grants a 10,000 cash advance from the travelling expenses of an Employee. The employee liquidates 8,000 of the cash advance and remits the excess cash advance of 2,000. - 8, ● All of the above involves the physical transfer of cash except - Remittance of taxes through the Tax Remittance Advice ● Which of the following modes of disbursement would result to the recognition of a loan payable in books of BTr - NCAA ● Entity A is a government hospital. Entity A would most likely recognize revenue from services rendered to a patient - When the services rendered and the patient is billed ● Which of the following would result in an increase or decrease in revenue.... - ANY OF THESE ● The receipt of subsidy from the national government or other government agencies - Give rise to the recognition of revenue ● Which of the following statements best describes the various Registries maintained by government entities? - ALL OF THESE
GOVERNMENT ACCOUNTING Reviewer
Course: Acctng For Governmental,Not-For-Profit Entities (ACT GOV)
University: Far Eastern University
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