According to P.D.

1445,
Amounts received in trust and from business-type activities of the government may be
separately recorded.
All revenues of an entity shall be retained by the entity and included in its General Fund, unless
another law specifically allows otherwise.
A collecting officer shall immediately issue a temporary receipt upon collecting a payment of any
nature.
Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash receipts,
the BIR may approve, upon request, the exemption from the use of accountable forms.

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
recorded as liability.
recognized as revenue.
recorded only in the registries but not in the books of accounts.
remitted only through the use of the TRA.

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?
Receipt of military equipment as donation from a foreign government.
Receipt of cash donation from an international organization.
Receipt of free trainings and seminars regarding process technology on farming from an
international organization.
Receipt of a bequest from the king of a foreign realm.

At the end of the period, the “Cash-Treasury/Agency Deposit, Regular” account is closed to the
Subsidy from National Government account.
Accumulated Surplus or Deficit account.
Cash-Modified Disbursement System (MDS), Regular account.
This account is not closed.

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
credit to the “Subsidy from National Government” account.
debit to the “Cash – Modified Disbursement System (MDS), Regular” account.
credit to the “Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas” account.
credit to the “Other Deferred Credits” account.

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

Government entities and business entities use the same accounting treatment for all of the following
except
trade discounts allowed to customers.
recognizing revenue from royalty agreements.
recognizing revenue from dividends.
remittance of taxes withheld to the BIR

Which of the following does not give rise to revenue from assistance or subsidy?
Inter-agency Fund Transfer
Notice of Cash Allocation
Tax Remittance Advice
Non-Cash Availment Authority

Remittances of collections to the National Treasury are recorded as a debit to which of the following
accounts
Cash – Collecting Officers
Cash-Treasury/Agency Deposit, Regular
Cash-Modified Disbursement System (MDS), Regular
Subsidy from National Government

All of the following give rise to the recognition of revenue from non-exchange transaction except
sale of goods
taxes
fines and penalties
donation of goods in-kind