1. Which of the following is not used in processing disbursements?

ORs
2. Payments of checks that are chargeable against the Treasury Account are credited to
the
Cash Modified Disbursement (MDS) account
3. When a government entity remits its collections to BTr, the journal entry to record the
remittance includes a
Debit Cash-Treasury/Agency Deposit, Regular
4. All of the following are considered valid cashless disbursements, except
Payment to a supplier through GCash
5. Statement I: Due to strict internal control measures, a government entity can only
disburse funds via cash or check
Statement II: Checks can be MDS or commercial checks
Only statement 2 is true

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6. A government entity makes constructive remittance of taxes withheld to the BIR

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through tax Remittance Advice. The entry in recording the transaction includes a

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Debit to Due to BIR

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7. It is an authority issued by an agency’s Central Office to its regional and operating

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units to cover the latter’s cash requirements
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Notice of Transfer of Allocation (NTA)
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8. Statement I: Government entities are allowed by law to make purchases using credit
card
Statement II: The department of National Defense is one government entity allowed
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to use credit card for payments

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Both statements are true

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9. Entity A acquires an equipment on account and settles the account by debiting

accounts payable and crediting subsidy from national government. The mode of
disbursement used is most likely a/an
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Non cash availment authority

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10. A certification of the availability of funds and completeness of supporting documents

is required before a disbursement of government funds is made. According to the
GAM for NGAs, who shall issue this certification?
Chief Accountant
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11. Statement I: Under the ADA mode of disbursement, payments from a government
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entity are directly debited to the accounts of the payees through fund/bank
Statement II: ADA works like a check, hence, once notified, the payee can go to the
back to withdraw the cash by presenting the notification
Both statements are false
12. According to GAM for NGAs, accounting for Petty Cash shall be done using
Imprest System
13. Which of the account credited when remitting government share for Pag-IBIG
contribution?
Due to Pag-IBIG

14. Statement 1: According to GAM for NGAs, the Advice to Debit Account (ADA) mode
of disbursement can be used only if the payee maintains an account in the same

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 bank where the government entity maintains its account.
Statement 2: Land Bank of the Philippines is the sole government servicing bank
where Advice to Debit Account (ADA) mode of disbursement can be done.
Both statements are false
15. Which of the following is not a form of a disbursement authority?
CBC
16. This is used to recognize in the books of National Government agencies, the
constructive remittance to BIR and BOC of taxes and customs’ duties withheld.
Tax Remittance Advice (TRA)
17. When a government agency pays an account and withholds tax, ,the journal entry
includes a credit to
Due to BIR
18. Which of the following accounts shall be debited once cash advance has been
granted?
Advances to Officers and Employees
19. Entity A wants to make disbursements online. Which of the following should Entity A

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do so that it can make valid disbursements online?

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Enroll with the eMDS of the LBP

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20. Statement I: No additional cash advance shall be given to any official or employee

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unless the previous cash advance given to him/her first liquidated

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Statement II: Liquidation of cash advance for foreign travel should be done in 30
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days upon return to work station
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Only statement 1 is true
21. The following disbursements are excluded from payment using LDDAP-ADA except
Payment of government employee salaries
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22. Petty Cash shall be replenished when

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Disbursements reach at least 75% or as needed

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23. The Chief Accountant shall charge obligations incurred against available allotment to
ensure that
No overdraft is incurred
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24. Entity A disburses a check chargeable against its checking account maintained with
ar stu

Government Servicing Bank. The journal entry to record disbursement involves a

credit to which of the following accounts?
Cash in Bank- Local Currency Current Account
25. Which of the following is not one of the modes of disbursements by government
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entity?
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Payment through GCash

26. Entity A has foreign service post. During the period, it receives authorization from
DBM allowing it to use the collections of its foreign service post to pay for the
necessary operating expenses. The entity to record the disbursement authority
includes a
Debit to cash-constructive income remittance
27. Which of the following is not true regarding cash advance for payroll?
Advances for Payroll may be used for encashment of checks for liquidation of
previous or other types of cash advances
28. According to the GAM for NGAs, disbursements for salaries and wages shall be
supported by
Payroll

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 29. Statement 1: All disbursements require prior certifications to establish their validity
and legality
Statement 2: A certification of fictitious obligation is void and results to criminal
liability by the certifying officials
Both statements are true.

30. Which of the following results in the recognition of payroll?

Liquidation of cash advance for travel

31. Statement 1: The Non-cash Availment Authority (NCAA) is a disbursement authority

issued to government agencies with foreign service posts.
Statement 2: The Department of Foreign Affairs has this kind of disbursement
authority. (#7 kay Ate Karen)
Both statements are false

32. The entry in the books of a government agency with foreign service post to record

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the receipt of disbursement authority called Cash Disbursement Ceiling (CDC)

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includes a (#29 kay Ate Karen)

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Credit to Subsidy from National Government

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33. Entity A purchases office supplies from an authorized merchant using an electronic
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card. The journal entry to record the transaction includes a
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Credit to Accounts Payable

34. Statement 1: All disbursements shall be made through Disbursements Vouchers (DV)
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or payroll.
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Statement 2: The head of Requisitioning Unit shall approve any disbursement.

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Only statement 1 is true

35. When overpayment of expense related to previous year is discovered, the journal
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entry to record the overpayment includes a

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Credit to Accumulated Surplus (Deficit)

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

Head of Agency
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37. Which of the following is not a signatory in the LDDAP-ADA?

Payee

38. Which of the following government agencies will most likely be able to obtain
disbursement authority in the form of Cash Disbursement Ceiling (CDC)?
DFA

39. According to the GAM for NGAs, cash disbursements are made through
Cash advances to authorized personnel

40. Statement 1: Disbursements through the Cash Disbursement Ceiling (CDC) results in

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 the recognition of a loan payable in the books of accounts of the BTr.
Statement 2: Since liability is recognized, the Cash Disbursement Ceiling (CDC)
involves cash inflow to the BTr.
Both statements are false.

41. Statement 1: Entity A may acquire equipment from a supplier, on account and a
lender settles the account of A by directly paying the supplier the proceeds of a loan
payable that is recorded in the BTr’s books
Statement 2: this transaction is called Cash Disbursement Ceiling (CDC).
Only statement 1 is true.

42. A certification on the availability of allotment is required before a disbursement of

government funds is made. According to the GAM for NGAs, who shall issue the
certification?
Budget officer

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43. Which of the following shall certify the availability of funds and completeness of

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supporting documents before the Head of Agency or his/her authorized

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representative can enter into a contract that obligate the government for the eventual

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payment of government funds?

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Chief accountant rs e
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44. Which of the following accounts shall be debited in recording replenishment of PCF?
Appropriate expense account
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45. Which of the following accounts is credited in the books of a government entity to
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reflect a non-cash availment authority (NCAA) mode of disbursement?

v i y re

Subsidy from National Government

46. Which of the following statements regarding the disbursement of government funds is
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incorrect?
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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”
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47. Entity A makes payment through bank transfer. This mode of disbursement is most
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likely through the use of a(an)

Advice to Debit Account

48. Which of the following results to the recognition in the books of accounts classified as
Personnel Services?
Set up of payable for payroll

49. Which of the following is true regarding disbursement through electronic Modified
Disbursement System (eMDS)?
The disbursement is made via an online transaction.

50. Which of the following shall certify the availability of allotment before obligations can

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 be incurred and disbursements are made?
Budget officer

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