Chapter 3

The Government Accounting Process

QUIZ 1:

1. 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

2. Which of the following is (are) affected when a government entity incurs obligations?
a. ORS
b. RAPAL
c. RAOD
d. a and c

3. 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

4. Which of the following accounts is most likely credited when a government entity remits its
collections to the National Treasury?
a. Cash-Tax Remittance Advice
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Treasury/Agency Deposit, Regular
d. Cash – Collecting Officers

5. 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

6. The receipt of allotment is recorded in the

a. RAPAL
b. RAOD
c. ORS
d. a and b
7. 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

8. The 8-digit Revised Chart of Accounts (RCA) Code for the account “Subsidy from National
Government” starts with number
a. 2
b. 3
c. 4
d. 6

9. 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

10. The NCA is recorded in the

a. Registry of Allotments and Notice of Cash Allocation (RANCA).
b. Books of accounts (Journal and Ledger)
c. Obligation Request and Status (ORS)
d. a and b

“Call upon me in the day of trouble; I will deliver you, and you shall glorify me.”
(Psalms 50:15)

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QUIZ 2:

1. The journal entry to record the billing of revenue (e.g., Communications Network Fees) is
a. Accounts receivable xxx
Communications Network Fees xxx
b. Cash-Collecting Officers xxx
Communications Network Fees xxx
c. Cash-Modified Disbursement System (MDS), Regular xxx
Communications Network Fees xxx
d. Accounts receivable xxx
Subsidy from National Government xxx

2. The journal entry to record the receipt of Notice of Cash Allocation is

a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx
b. Cash-Collecting Officers xxx
Subsidy from National Government xxx
c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx
d. No journal entry.

3. The journal entry to record the receipt of appropriation is

a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx
b. Cash-Collecting Officers xxx
Subsidy from National Government xxx
c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx
d. No journal entry.

4. The journal entry to record the receipt of allotment is

a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx
b. Cash-Collecting Officers xxx
Subsidy from National Government xxx
c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx
d. No journal entry.

5. The entry to record the reversion of unused NCA at the end of the year is
a. Subsidy from National Government
Cash-Modified Disbursement xxx
System (MDS), Regular xxx
b. Accumulated Surplus/(Deficit) xxx
Cash-Treasury/Agency Deposit,
 Regular xxx
c. Subsidy from National Government xxx
Cash-Collecting Officers xxx
d. No journal entry.

6. The entry to record the remittance of contributions to the GSIS, Pag-IBIG or PhilHealth is
a. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Tax Remittance Advice xxx
b. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Collecting Officers xxx
c. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Modified Disbursement
System (MDS), Regular xxx
d. No journal entry.

7. The entry to record the liquidation of payroll fund is

a. Salaries and Wages, Regular xxx
Personal Economic Relief Allowance (PERA) xxx
Due to BIR xxx
Due to GSIS xxx
Due to Pag-IBIG xxx
Due to PhilHealth xxx
Due to Officers and Employees xxx
b. Advances for Payroll xxx
Cash-Modified Disbursement
System (MDS), Regular xxx
c. Due to Officers and Employees xxx
Advances for Payroll xxx
d. Cash-Collecting Officers xxx
Advances for Payroll xxx

8. The entries to record the constructive remittance of taxes withheld to the BIR and the
constructive receipt of NCA for the TRA include
a. Cash-Tax Remittance Advice xxx
Due to BIR xxx
b. Subsidy from National Government xxx
Cash-Tax Remittance Advice xxx
c. a and b
d. None of these.

9. The entry to close the “Cash-Treasury/Agency Deposit, Regular” account at the end of the period is
a. Accumulated Surplus/(Deficit) xxx
Cash-Treasury/Agency Deposit,
Regular xxx
b. Subsidy from National Government xxx
Cash-Treasury/Agency Deposit,
Regular xxx
 c. Cash-Collecting Officers xxx
Cash-Treasury/Agency Deposit,
Regular xxx
d. None of these. The account is not closed.

10. The journal entry to record the collection of unbilled tax revenue (e.g., Travel Tax) through
direct deposit in Authorized Agent Banks is
a. Accounts Receivable xxx
Travel Tax xxx
b. Cash-Modified Disbursement System (MDS), Regular
Travel Tax xxx
xxx
c. Cash-Collecting Officers xxx
Travel Tax xxx
d. Cash-Treasury/Agency Deposit, Regular xxx
Travel Tax xxx

“A man who asks is a fool for five minutes. A man who never asks is a fool for
life.”
- Chinese Proverb

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