Professional Documents
Culture Documents
Mock Exam
Mock Exam
Mock Exam
a. Government
b. Local Government Unit
c. Province
d. City
e. Barangay
2. The common requirements for creation of a local government unit or its conversion from one
level to another shall be based on the following:
a. Sufficient Income
b. Population within the territorial jurisdiction
c. Contiguous Land Area
d. All of the above
e. None of the above
3. The determination of compliance to the common requirements for creation of an LGU or its
conversion shall be attested to by the following except:
a. Department of Finance
b. National Statistics Office
c. Provincial Capitol
d. Lands Management Bureau
e. Department of Environment and National Resources
4. The income classification of local government units resulting from division and merger shall
be updated to reflect the changes in their financial position.
5. A province may be created by an Act of Congress and subject to approval by a majority of the
votes cast in a plebiscite to be conducted by the COMELEC in the local government unit or
units directly affected. From the effectivity of said Act, the plebiscite shall be held within:
a. 30 days
b. 60 days
c. 120 days
d. One year
e. None of the above
6. A contiguous territory as certified by the Lands Management Bureau to comply with the
creation of a province shall be at least:
7. A province may be created if it has an Average Annual Income for the immediately preceding
2 consecutive years based on 1991 constant prices, as certified by the Department of Finance,
of not less than:
a. Php 2,500,000.00
b. Php 20,000,000.00
c. Php 50,000,000.00
d. Php 100,000,000.00
e. Php 250,000,000.00
8. The minimum population as certified by the National Statistics Office to comply with the
requirement for the creation of a province shall be:
a. 25,000 inhabitants
b. 100,000 inhabitants
c. 150,000 inhabitants
d. 250,000 inhabitants
e. 500,000 inhabitants
a. Php 2,500,000.00
b. Php 20,000,000.00
c. Php 50,000,000.00
d. Php 100,000,000.00
e. Php 250,000,000.00
10. The minimum population as certified by the National Statistics Office to comply with the
requirement for the creation of a city shall be:
a. 25,000 inhabitants
b. 100,000 inhabitants
c. 150,000 inhabitants
d. 250,000 inhabitants
e. 500,000 inhabitants
11. A contiguous territory as certified by the Lands Management Bureau to comply with the
creation of a city shall be at least:
12. A classification based on the minimum population of 200,000 inhabitants and Annual
Income of at least Php 50,000,000.00.
a. Barangay
b. Municipality
c. Province
d. Highly Urbanized Cities
e. Component cities of the province
13. A municipality may be created if it has an Average Annual Income for the last 2 consecutive
years based on 1991 constant prices, as certified by the Department of Finance, of not less
than:
a. Php 2,500,000.00
b. Php 20,000,000.00
c. Php 50,000,000.00
d. Php 100,000,000.00
e. Php 250,000,000.00
14. The minimum population as certified by the National Statistics Office to comply with the
requirement for the creation of a municipality shall be:
a. 25,000 inhabitants
b. 100,000 inhabitants
c. 150,000 inhabitants
d. 250,000 inhabitants
e. 500,000 inhabitants
15. The creation, division or abolition of alteration of boundaries of provinces, cities,
municipalities, or barangay within ARMM shall be determined and enacted by:
a. Act of Congress
b. Province
c. Sanggunian
d. Local Government Unit
e. Regional Assembly
ANSWERS
1. b | 2. d | 3. c | 4. a | 5. c | 6. b | 7. b | 8. d | 9. d | 10. c | 11. a | 12. d | 13. a | 14. a |
15. e
1. The number of ranking eligible recommendees of the governor or mayor, as the case may be,
subject to civil service law, rules and regulations from which the Secretary of Finance shall
appoint a Local Treasurer.
a. 2
b. 3
c. 4
d. 5
e. None of the above
2. The following are some of the requirements for the appointment of a Local Treasurer except:
3. The plantilla of personnel in the local government unit concerned in relation to the position
of Local Treasurer should show the following information except:
a. Designation of Position
b. Appropriation or Budget Item Number
c. Range/Salary Grade of the Position
d. Documents establishing compliance to the prescribed requirements
e. Authorized and Actual Salary per annum
4. The delegation of the Appointing Authority over Provincial, City and Municipal Treasurers
and their Assistants may be given by the Secretary of Finance to:
5. Requests for relief, transfer, or detail of Treasurers and Assistant Treasurers shall be acted
upon only for justificable reasons and after compliance with the requisites of due process
comprising with the following except:
6. Unless sooner revoked, the designation of the OIC/ICO of Local Treasury Offices and Acting
Assistant Provincial/City/Municipal Treasurers shall be a period of:
a. 3 months
b. 6 months
c. 1 year
d. 3 years
e. 6 years
7. The designation, conditioned upon a satisfactory performance and in the absence of any
derogatory report and/or adverse information against the designate, can be extended only:
a. Once
b. Twice
c. Thrice
d. Upon recommendation by the Local Chief Executive
e. None of the above
8. Designations and extensions thereof shall be processed by the Regional Office within:
9. Submissions by the Regional Office for designations and extensions thereof shall be
confirmed within:
10. Submission by the BLGF Regional Director for designations shall be acted upon by the
Executive Director and Bureau of Local Government Finance within:
11. Designation submitted to the BLGF for confirmation shall be accompanied by the following
documents except:
a. Officer-in-Charge
b. In-Charge of Office
c. Local Treasurer
d. Assistant Local Treasurer
e. Barangay Treasurer
a. Officer-in-Charge
b. In-Charge of Office
c. Local Treasurer
d. Assistant Local Treasurer
e. Barangay Treasurer
a. 30 days
b. 60 days
c. 90 days
d. 120 days
e. 150 days
15. The Assistant Municipal Treasurer who automatically assumes as ICO shall notify the
BLGF Regional Director concerned, thru the Provincial Treasurer, of the absence, sickness,
death of other incapacity of the regular incumbent and of the date of his/her assumption in a
caretaker capacity within:
a. 24 hours
b. 48 hours
c. 7 days
d. 15 days
e. 30 days
16. The following do not meet the requirements for a person to be appointed Barangay
Treasurer except:
17. A Local Treasurer who is reinstated after having been illegally dismissed is considered as
not having left his office and should be given comparable compensation at the time of his
reinstatement in an amount not exceeding:
a. 6 months salary
b. 1 year salary
c. 2 years salary
d. 5 years salary
e. 10 years salary
18. The approval of application for leave of Provincial, City and Municipal Treasurers and
Assistant Provincial, City and Municipal Treasurers where he intends to leave the country
regardless of duration shall be by:
a. Department of Finance
b. BLGF Regional Director
c. Local Chief Executive
d. Barangay Chairman
e. BLGF Executive Director
a. Department of Finance
b. BLGF Regional Director
c. Local Chief Executive
d. Barangay Chairman
e. BLGF Executive Director
ANSWERS
1. b | 2. c | 3. d | 4. a | 5. c | 6. b | 7. b | 8. d | 9. a | 10. c | 11. e | 12. b | 13. a | 14. c |
15. a | 16. d | 17. d | 18. a | 19. b | 20. c
1. The BLGF Regional Officers shall perform the following administrative and technical
functions involving local treasury operations except:
a. Supervise and coordinate the conduct of local treasury and assessment operations of
provinces, cities and municipalities within the region for the proper implementation of laws,
decrees, rules, regulations and administrative issuances of the Department of Finance.
b. Coordinate the plans, programs and activities of local treasury and assessment offices in the
conduct of tax collection drives and tax information and education campaigns.
c. Conduct regional training programs, seminars, workshops and other allied activities for the
improvement of the administrative and technical skills in the local treasury offices.
d. See to it that payment of taxes of a business is not avoided through simulation of the
retirement thereof and recommend to the Mayor for the disapproval of the application for the
termination or retirement of the business.
e. Undertake measures that would lead to efficient administration of local treasury operations.
Chapter 4. The Roles and Responsibilities of Local Treasurers
2. The following are the duties and responsibilities of the Provincial, City, and Municipal
Treasurer except:
3. The provincial, city or municipal treasurers or his deputy shall prepare a certified list of all
real property tax delinquencies which remained uncollected or unpaid for at least one year in
his jurisdictions and submit the same to the sanggunian concerned on or before:
4. The Local Treasurer shall submit certified statement covering income and expenditures to
the LCE on or before:
5. The City or Municipal Treasurer, jointly with the City or Municipal Accountant, shall issue a
certified statement covering actual income on or before:
6. The Local Treasurer shall be a member of the following Local Committees and Boards except:
7. Specific role of the Local Treasurer in the enactment or amendment of revenue ordinance of
Local Government Units include the following except:
8. The Local Government Code of 1991 allows the rates of taxes to be adjusted only once every:
a. 3 years
b. 5 years
c. 10 years
d. 15 years
e. None of the above
a. 5-7 members
b. 5-9 members
c. 10-12 members
d. 10-15 members
e. Any number
10. It is an inter-agency board created under the Government Procurement Reform Act or R A.
No. 9184 chaired by the Secretary of DBM.
11. The keys of the padlocks of the ballot box upon the termination of the counting of the votes
shall be placed in separate envelopes, sealed and signed by all members of the board and
delivered by a COMELEC representative to the following except:
a. Provincial Treasurer
b. Provincial Governor
c. Provincial Fiscal
d. Provincial Election Supervisor
e. None of the above
12. The Board of Canvassers must complete their canvass in the provinces within:
a. 24 hours
b. 36 hours
c. 48 hours
d. 72 hours
e. 96 hours
13. The Board of Canvassers must complete their canvass in the municipalities within:
a. 24 hours
b. 36 hours
c. 48 hours
d. 72 hours
e. 96 hours
14. The Board of Canvassers must complete their canvass in the cities within:
a. 24 hours
b. 36 hours
c. 48 hours
d. 72 hours
e. 96 hours
Chapter 6. Bond for Local Treasurers and Other Accountable Officers of Local Government
Units
16. The Barangay Treasurer shall be bonded with the Fidelity Fund immediately upon
assumption of office in the amount to be determined by the Sangguniang Barangay but not to
exceed:
a. Php 5 million
b. Php 1 million
c. Php 100,000.00
d. Php 50,000.00
e. Php 10,000.00
17. At what percentage of their total value should the corresponding bond for Accountable
Forms involving Cash Tickets, Cattle Registration Certificates, and Marriage Certificates be?
a. 5%
b. 10%
c. 15%
d. 20%
e. 25%
18. An official/employee who has both money and property accountability, shall be bonded
only once to cover both accountabilities, but the amount of the bond shall be in accordance
with the Schedule of Cash Accountability, provided however, that the amount of bond shall not
exceed:
a. Php 5 million
b. Php 1 million
c. Php 100,000.00
d. Php 50,000.00
e. Php 10,000.00
19. The Fidelity Fund shall not be used for the following except:
a. For 5 years
b. For 3 years
c. For 1 year
d. For 6 months
e. During the duration of appointment
ANSWERS
1. d | 2. e | 3. d | 4. b | 5. c | 6. a | 7. e | 8. b | 9. a | 10. d | 11. b | 12. d | 13. b | 14. c |
15. e | 16. e 17. b | 18. a | 19. b | 20. c
Book Two: Receipts and Collection of Local Income, Revenues and Other Fund Sources
Chapter 1. Types of Local Income and Revenues Collected by Local Government Units
1. It refers to all revenues and receipts collected or received forming the gross accretions of
funds of the local government unit.
a. Taxes
b. Revenue
c. Cash collection
d. Income
e. Profit
2. It has the power to create its own sources of revenue and to levy taxes, fees and charges
subject to the provisions of the Local Government Code of 1991, consistent with the basic
policy of local autonomy.
a. Province
b. Local Government Unit
c. City
d. Congress
e. Office of the President
3. The authority of the government to classify the object of taxation, to be valid, must be
reasonable and this requirement is not deemed satisfied unless:
4. The following describe what the taxes, fees and other impositions shall be except:
5. The following are the requirements for a local ordinance to be valid except:
7. The local chief executive may veto any ordinance of the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang bayan. He/she shall communicate the veto:
9. The Sangguniang Panlalawigan shall review the approved city or municipal ordinances or
resolutions within:
10. The city or municipal ordinance or resolution shall be presumed consistent with law and
therefore valid if no action has been taken by the sangguniang panlalawigan within:
a. 3 days
b. 10 days
c. 15 days
d. 30 days
e. 60 days
11. Appeal on the constitutionality or legality of an ordinance may be made within 30 days to
the Secretary of Justice who shall render a decision within:
12. The penalties for violation of tax ordinances prescribed by the local government unit:
13. The following are some of the taxes, fees and charges specifically reserved to provinces
except:
14. The following are the taxes, fees and charges that may be levied by the municipalities and
not otherwise levied by provinces except:
15. Except the rates of professional and amusement taxes, the rates of taxes that the city may
levy may exceed the maximum rates allowed for the province or municipality by not more than:
a. 50%
b. 40%
c. 30%
d. 20%
e. 10%
ANSWERS
1. d | 2. b | 3. e | 4. a | 5. d | 6. e | 7. d | 8. b | 9. a | 10. d | 11. e | 12. c | 13. b | 14. d |
15. a
Book Two: Receipts and Collection of Local Income, Revenues and Other Fund Sources
Chapter 1. Types of Local Income and Revenues Collected by Local Government Units
1. The rate of tax on stores or retailers with fixed business establishments with gross sales or
receipts of the preceding calendar year of Php 50,000.00 or less, in the case of cities and Php
30,000.00 or less, in the case of municipalities, shall not exceed:
2. The application for Barangay clearance for any business or activity shall be acted upon
within:
3. The barangay may levy reasonable fees and charges for the following except:
4. Local government units share from the income generated by the national government from
all taxes and revenue sources for the following except:
a. Bankruptcy
b. Fiscal Losses
c. Budget deficit
d. Variance
e. Public sector deficit
6. The share of all provinces from the total annual Internal Revenue Allotment (IRA) shall be at
an allocation of:
a. 20%
b. 30%
c. 34%
d. 23%
e. 33%
7. The share of all municipalities from the total annual Internal Revenue Allotment (IRA) shall
be at an allocation of:
a. 20%
b. 30%
c. 34%
d. 23%
e. 33%
8. The share of all barangays from the total annual Internal Revenue Allotment (IRA) shall be at
an allocation of:
a. 20%
b. 30%
c. 34%
d. 23%
e. 33%
9. Every barangay with a population of not less than 100 inhabitants shall be entitled to an
Internal Revenue Allotment (IRA) chargeable against the 20% share of the barangay from the
total IRA of not less:
a. Php 20,000.00
b. Php 40,000.00
c. Php 60,000.00
d. Php 80,000.00
e. Php 100,000.00
10. The individual shares in Internal Revenue Allotment (IRA) of each LGU shall be
automatically released direct to the provincial, city, municipal, or barangay treasurer, as the
case may be, on:
a. a monthly basis
b. a quarterly basis
c. a semi-annual basis
d. an annual basis
e. None of the above
11. At what minimum percentage of the Internal Revenue Allotment (IRA) for the year be
mandatory for each LGU to asset aside in its annual budgets as appropriation for local
development projects that are embodied or contained in the local development plans?
a. 5%
b. 10%
c. 20%
d. 30%
e. None of the above
12. It refers to the natural resources situated within the Philippine territorial jurisdiction
including lands of public domain waters, minerals, coal, petroleum, mineral oils, potential
energy forces, gas and oil deposits, forest products, wildlife, flora and fauna, fishery and
aquatic resources and all quarry products.
a. Land resources
b. Sovereignty
c. Forestry
d. National territory
e. National wealth
13. From the gross collection derived by the national government from the preceding fiscal year
from the mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or
charges as well as administrative charges accruing to the national government, the LGU shall,
in addition to the IRA, have a share of:
a. 10%
b. 20%
c. 30%
d. 40%
e. None of the above
14. In lieu of the national and local taxes, businesses and enterprises in Special Economic
Zones shall pay gross income tax of:
a. 1%
b. 3%
c. 5%
d. 10%
e. 12%
15. Other common sources of LGU revenues outside taxation, fees and charges, and shares in
national taxes and wealth are the following except:
a. Donations
b. Sale of Fixed Assets
c. Contributions
d. Sale of Waste Materials
e. Interest Income
ANSWERS
1. e | 2. c | 3. b | 4. e | 5. c | 6. d | 7. c | 8. a | 9. d | 10. b | 11. c | 12. e | 13. d | 14. c |
15. a
Book Two: Receipts and Collection of Local Income, Revenues and Other Fund Sources
Chapter 2. Collection of Revenues and Other Receipts
1. For drawing of checks payable to the LGU, under no circumstances shall the following
checks be accepted except:
2. Upon receipt of the dishonored check and debit memo from the depository bank concerned,
the collecting officer or Local Treasurer shall accomplish the “Notice of Dishonor” and sign it in
behalf of the local chief executive within:
a. 24 hours
b. 2 days
c. 3 days
d. 5 days
e. 7 days
3. The local chief executive upon the recommendation of the Local Treasurer, shall immediately
transmit the certified copies of the dishonored check, debit memo from the bank and notice of
dishonor to the city or provincial prosecutor if the drawer of the dishonored check due to lack
or insufficiency of funds fail to settle his account within:
4. Unless the court shall direct otherwise, pending their redemption, dishonored checks shall
remain in the custody of:
a. Checks
b. Cash Tickets
c. Certificate of Transfer of Large Cattle
d. Certificate of Ownership of Large Cattle
e. Marriage License Certificate
a. 1 month
b. 3 months
c. 6 months
d. 1 year
e. None of the above
7. All Provincial, City and Municipal Treasurers shall deposit their funds and maintain deposit
accounts with Land Bank of the Philippines and Development Bank of the Philippines. By way
of exception, and subject to prior approval of the Department of Finance, they may likewise do
so with the following except:
8. The Barangay Treasurer shall deposit all collections with the city or municipal treasury or in
the depository account maintained in the name of the barangay within:
9. It refers to available cash which the local government unit can freely invest in government
securities and/or fixed term deposits with authorized government depository banks.
a. Idle funds
b. Collections
c. Taxes
d. Bank deposits
e. Cash in Treasury
10. The Treasurer shall maintain the following cashbooks except:
11. It shall be maintained by individual Tellers, Fields and Market Collectors and other
authorized personnel receiving collections outside of the local government office.
12. It shall be used by the designated Liquidating Officer to record all collections turned over to
him by Tellers, Field and Market Collectors, and remittances to the Local Treasurer/Cashier.
13. The Report of Collections and Deposits shall be prepared daily by:
a. Tellers/Collectors
b. Liquidating Officers
c. Local Treasurer/Cashier
d. None of the above
e. All of the above
14. The following shall govern the examination by the Local Treasurer of books of accounts and
pertinent records of businessmen except:
15. In case the books of accounts and other records are not available on the first visit, another
appointment with the business owner/representative, after serving the Letter of Authority,
should be made not later than:
a. 3 days
b. 5 days
c. 7 days
d. 15 days
e. 30 days
16. The deputized Examiners shall perform the following activities except:
18. It shows the detailed computation of the additional assessment for business tax based on
the computed understatement of sales/receipts declared in the business permit application,
the amount of surcharges and penalties, the interest on the deficiency tax assessed, as well as
the signatures of the Examination Team and the Local Treasurer.
19. It shows the amount of tax deficiency inclusive of penalties, surcharges and interest
resulting from the conduct of the examination.
ANSWERS
1. b | 2. c | 3. d | 4. e | 5. a | 6. b | 7. a | 8. d | 9. a | 10. c | 11. b | 12. d | 13. e | 14. c |
15. a | 16. e | 17. b | 18. d | 19. c | 20. a
a. Trust Fund
b. Mutual Fund
c. Special Fund
d. General Fund
e. None of the above
2. It is defined as a sum of money or other resources set aside for the purpose of carrying out
specific activities or attaining certain objectives in accordance with special regulations,
restrictions or limitations, and constitutes an independent fiscal and accounting entity.
a. Government Fund
b. Special Funds
c. Local Funds
d. Fund
e. Trust Fund
3. It consists of monies and resources of the local government which are available for the
payment of expenditures, obligations or purposes not specifically declared by law as accruing
and chargeable to, or payable from, any other fund (Sec. 308, LGC)
a. Government Fund
b. Special Funds
c. Local Funds
d. Fund
e. Trust Fund
4. The General Fund maintains Special Accounts for the following except:
a. Development projects funded from the share of the local government unit concerned in the
internal revenue allotment.
b. Public utilities and other economic enterprises.
c. Operation and maintenance of public schools.
d. Other special accounts which may be created by law or ordinance.
e. Loans, interests, bond issues, and other contributions for specific purposes.
5. It shall consist of private and public monies which have officially come into the possession of
the local government or of a local government official as trustee, agent or administrator, or
which have been received as guaranty for the fulfillment of some obligation.
a. Trust Funds
b. Special Funds
c. Real property tax proceeds
d. Local Funds
e. General Funds
6. The Local School Board determines and approves the allocation of proceeds from the
applicable tax on real property for the following purposes except:
a. Educational research
b. Construction of a school playground
c. Operation and maintenance of public schools
d. Purchase of books and periodicals
e. Construction and repair of school buildings, facilities and equipment
7. The following are some of the fundamental principles governing the utilization of Local
Funds except:
8. It refers to an authorization made by ordinance, directing the payment of goods and services
from local government funds under specified conditions or for specific purposes.
a. Savings
b. Government resolution
c. Budget
d. Appropriation
e. General Fund
a. Supplemental Appropriation
b. Treasury Appropriation
c. Annual Appropriation
d. Continuing Appropriation
e. None of the above
10. This refers to an appropriation available to support obligations for a specified purpose or
project, such as those for the construction of physical structures or for the acquisition of real
property or equipment, even when these obligations are incurred beyond the budget year.
a. Supplemental Appropriation
b. Treasury Appropriation
c. Annual Appropriation
d. Continuing Appropriation
e. None of the above
11. This is one prepared to adjust the equilibrium of the first approved budget which has been
disturbed by current economic, political or social conditions, or to provide an additional
amount to the original appropriation which proved to be inadequate or insufficient for the
particular purpose intended.
a. Supplemental Appropriation
b. Treasury Appropriation
c. Annual Appropriation
d. Continuing Appropriation
e. None of the above
12. This is an appropriation consisting of specified amounts for salaries, wages, and sundry
expenses, etc., authorized by the sanggunian as necessary for the regular operations of the
local government unit during any given year.
a. Supplemental Appropriation
b. Treasury Appropriation
c. Annual Appropriation
d. Continuing Appropriation
e. None of the above
13. It is based on estimated income and program of expenditures for a given year.
14. It is a system of budget control to ensure that obligations incurred will not exceed
appropriations or authorizations made by appropriation ordinance, directing the payment of
goods and services from local government funds under specified conditions or purposes.
15. It is an authorization issued by the Local Chief Executive to a department/office of the local
government unit, which allows it to incur obligations for specified amounts within its
appropriations.
16. This is the yearly overall financial plan of the local government unit equivalent to its
approved appropriation disaggregated into components or categories.
17. This reflects the targeted units of work under each program/activity/project (P/A/P) for
each department/office based on the historical data of peaks and slumps of activities/tasks
and the peculiar requirements of certain P/A/Ps.
18. This must be able to facilitate the management of cash such that it is available when it is
needed for payment of obligations and at the same time optimizes its utilization.
19. This refers to the amount committed to be paid by the local government unit for any lawful
act made by an accountable officer for and in behalf of the local government unit concerned.
20. The Local Budget Matrix classifies budgetary items under the following except:
a. Unprogrammed Appropriation
b. Revenue Collection
c. Not-Needing Clearance
d. Reserve
e. Later Release
ANSWERS
1. b | 2. d | 3. c | 4. d | 5. a | 6. b | 7. e | 8. d | 9. b | 10. d | 11. a | 12. c | 13. a | 14. e |
15. b | 16. b | 17. a | 18. d | 19. c | 20. b
1. The following provides for the steps in the obligation process except:
3. This refers to appropriations for the purchase of goods and services for current consumption
or for benefits expected to terminate within the fiscal year.
4. This refers to appropriations for the purchase of goods and services, the benefits of which
extend beyond the fiscal year and which add to the assets of local government unit concerned.
5. This signifies that the expenditure incurred does not adhere to established rules,
regulations, procedural guidelines, policies, principles or practices that have gained recognition
in law.
a. Unnecessary Expenditures
b. Extravagant Expenditures
c. Excessive Expenditures
d. Irregular Expenditures
e. Unconscionable Expenditures
6. This pertains to expenditures which could not pass the test of prudence or the obligation of
a good father of a family, thereby not responsive to the exigencies of the service.
a. Unnecessary Expenditures
b. Extravagant Expenditures
c. Excessive Expenditures
d. Irregular Expenditures
e. Unconscionable Expenditures
7. It signifies expenses without knowledge or sense of what is right, reasonable and just and
not guided or restrained by conscience.
a. Unnecessary Expenditures
b. Extravagant Expenditures
c. Excessive Expenditures
d. Irregular Expenditures
e. Unconscionable Expenditures
a. Unnecessary Expenditures
b. Extravagant Expenditures
c. Excessive Expenditures
d. Irregular Expenditures
e. Unconscionable Expenditures
9. This signifies those incurred without restraint, judiciousness and economy. These
expenditures exceed the bounds of propriety and are immoderate, prodigal, lavish, luxurious,
wasteful, grossly excessive, and injudicious.
a. Unnecessary Expenditures
b. Extravagant Expenditures
c. Excessive Expenditures
d. Irregular Expenditures
e. Unconscionable Expenditures
a. Office equipment and property without the proper identification or inventory markings.
b. Reimbursement of expenses incurred by persons other than authorized representatives of
the LGU for attending conferences, meetings and other official functions.
c. Payment for emergency purchase, where there is no emergency.
d. Payments made on the basis of split requisitions, purchase orders, vouchers or checks even
with approval by proper authority of the LGU.
e. Bringing home government motor vehicles after office hours by officials to whom these are
assigned.
a. Grant of overtime pay for work that is not urgent in nature as to require completion within a
specified time or that can be undertaken during regular office hours.
b. Expenses for advertisement of anniversaries, etc., in newspapers, television or radio merely
for publicity or propaganda purposes.
c. Use of air conditioners when not needed, or even during the absence of the official in whose
room the air conditioner is installed.
d. Use of table lamps while working in the office where the room is adequately illuminated from
the ceiling lights.
e. None of the above.
a. 33
b. 10
c. 20
d. 15
e. 50
13. To determine if the price is excessive, the following factors may be considered except:
a. Payment for maintenance of government vehicles and replacement of parts beyond their life
cycle.
b. Overpricing of purchases characterized by grossly exaggerated or inflated quotations, in
excess of the current and prevailing market price by a 10% variance from the purchased item.
c. Payment for repair of government equipment at a cost exceeding 30% of the current market
price of the same or similar equipment.
d. Expenditures for supplies and materials in quantities beyond that required and needed by
the LGU for a determinable period, resulting in overstocking.
e. None of the above.
ANSWERS
1. a | 2. d | 3. a | 4. e | 5. d | 6. a | 7. e | 8. c | 9. b | 10. d | 11. e | 12. b | 13. c | 14. a |
15. d
1. It constitutes all payments made during a given period either in currency, by check, through
bank and electronic transfers, telegraphic transfers, letters of credit, credit/debit cards and
other non-conventional modes of payment.
a. Local Funds
b. Appropriations
c. Disbursements
d. Savings
d. None of the above
a. Advance Payments
b. Expenditures for Religious or Private Purposes
c. Expenses for Reception and Entertainment
d. Cash Overdrafts in the Treasury
e. None of the above
3. Disbursements from the General Fund and Special Education Fund shall require the
following except:
a. Certification as to existence of appropriation that has been legally made for the purpose by
the Local Budget Officer.
b. Certification as to necessity, legality, as well as to the validity, propriety and legality of
support documents by the head of the requesting department or office.
c. Certification in the Disbursement Voucher by the Local Accountant and the Local Treasurer.
d. Approval by the Local Chief Executive.
e. None of the above
4. Disbursement from the Trust Fund shall require the following except:
5. It is used for the payment of salaries and other emoluments of government employees.
a. Commutable Allowances
b. Honoraria to officials and employees
c. Special Cash Advances
d. Regular Cash Advances
e. Salaries and Wages
7. These are those granted on the explicit authority of the Local Chief Executive only to duly
designated disbursing officers or employees for other legally authorized purposes.
a. Commutable Allowances
b. Honoraria to officials and employees
c. Special Cash Advances
d. Regular Cash Advances
e. Salaries and Wages
8. The cash advance for petty operating expenses shall be sufficient for the recurring expenses
of the agency for:
a. 15 days
b. 1 month
c. 1 quarter
d. 6 months
e. 1 year
9. The Accountable Officer may request replenishment of the case advance when the
disbursements reach at least:
a. 10%
b. 25%
c. 50%
d. 75%
e. None of the above.
11. The amount of the cash advance shall be limited to the requirements for 2 months. The
Accountable Officer shall submit a Report of Disbursements:
12. Travels and payment of travel expenses of officials and employees of National Government
Agencies will require approval of the Department Secretary or his equivalent if it will last more
than:
a. 10 days
b. 15 days
c. 30 days
d. 45 days
e. 60 days
13. The travel expenses of government personnel regardless of rank and destination shall be in
the amount of:
a. Php 500.00
b. Php 800.00
c. Php 1,500.00
d. Php 5,000.00
e. Any amount as requested
14. The cash advance voucher for official foreign travel shall be supported by which
document(s):
a. Travel Order
b. Itinerary of Travel
c. Authority from the President to claim Representation Expenses, when applicable.
d. Certification of the local official or employee concerned duly verified by the Local Accountant
to the effect that no clothing allowance had been received during the next preceding 24
months, if clothing allowance is being claimed.
e. Official receipts of initial expenses made in preparation for such travel.
15. Cash advance for salaries and wages shall be liquidated within the prescribed period of:
ANSWERS
1. c | 2. e | 3. e | 4. a | 5. e | 6. d | 7. c | 8. b | 9. d | 10. e | 11. b | 12. c | 13. b | 14. e |
15. b
1. Cash advance for Petty Operating Expenses and Field Operating Expenses shall be
liquidated within the prescribed period of:
2. A cash advance has to be returned or refunded immediately to the Collecting Officer if it has
not been used for period of:
a. 2 months
b. 3 months
c. 6 months
d. 1 year
e. 2 years
3. Liquidation of the cash advance for Petty Operating Expenses shall be supported by the
following reports and documents except:
a. Report of Disbursements
b. Approved Requisition and Issue Voucher with the Certificate of Emergency Purchase, if
necessary
c. Receipts, Sales Invoices
d. Certificate of Acceptance/Inspection
e. Canvass of at least 3 suppliers
4. Examples of the use of intelligence and/or confidential expenses are as follows except:
a. 2
b. 3
c. 5
d. 10
e. None of the above
8. The frequency of which the Barangay Treasurer shall record all the checks issued in the
Summary of Checks Issued.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
9. The frequency of which the Barangay Record Keeper shall record check disbursement based
on the certified Summary of Checks Issued in the Check Disbursement Register.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
10. The schedule of which the Barangay Record Keeper shall submit the Check Disbursement
Register together with the Summary of Check Issued to the City/Municipal Accountant for
recording of the checks issued in the books.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
11. The schedule for which the Check Disbursement Register shall be totaled, balanced, ruled
recapitulated and certified.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
12. The barangay Disbursement Voucher in 4 copies shall be distributed to the following
except:
13. The cash advance for payroll charged against Barangay Funds maintained by depository
bank shall be liquidated.
14. At what percentage of the General Fund of the barangay shall the budget for the
Sangguniang Kabataan be?
a. 10%
b. 3%
c. 20%
d. 5%
e. None of the above
15. Sanggunian Kabataan budgeting is the same as that of the other LGUs. The major phases
are the following except:
a. Budget Preparation
b. Budget Authorization
c. Budget Review and Execution
d. Budget Accountability and Reporting
e. None of the above
ANSWERS
1. d | 2. a | 3. e | 4. b | 5. a | 6. d | 7. c | 8. a | 9. b | 10. d | 11. c | 12. e | 13. b | 14. a |
15. e
2. It allows Local Treasurers to manage the cash such that it is available when it is needed for
payment of obligations and at the same time optimize its utilization, ensure that released
allotments are adequately covered by available cash and/or future collections, and provide
information to facilitate the control of expenditures.
a. Cash Programming Tools
b. Cash Flow from Operating Activities
c. Cash Flow Forecast
d. Good Governance
e. Cash Management and Programming
3. It aids the Local Treasurer in cash management and programming such as Cash Flow
Forecast and the Cash Flow Analysis.
5. It pertains to the receipts from, and disbursements of cash out of, the regular and primary
operations of the local government unit such as from collection of taxes, share from IRA,
payment to creditors and employees, etc.
6. It includes receipt of cash from bank loans, proceeds from the floatation of bonds and
receipts from other types of borrowings.
7. It pertains to receipts from the sale, acquisition or purchase of long term investments such
as real estate, machinery and other Plant, Property and Equipment.
8. It is a schedule of all income collections and other receipts to be prepared by all collecting
units. All receipts shall also be classified into operating, financing and investing activities.
10. It is a cash flow monitoring tool used to guide the Local Chief Executive, the Local
Treasurer, and the Local Budget Officer to control the releases of allotment depending on the
collection/expenditure performance during the period.
11. It is the ratio of the Present Value of Annual Cash Returns discounted at the lowest
acceptable rate to the Present Value of the Initial Investment Cost.
12. It is the amount of cash a project is expected to generate annually, and equal to the cash
inflows from projected sales and or service fees minus the estimated cash outflows for
operational expenses.
13. It refers to the expected increase in its peso value considering the prevailing interest rates,
the passage of time, and opportunity cost of capital and similar factors.
14. It is the rate at which an investment is earning, and equates the present value of cash
returns with the present value of the initial investment.
15. It represents the excess of the present value of annual cash returns (discounted at the
lowest acceptable rate) over the present value of the initial capital investment.
a. Cost of money
b. Economic life
c. Scrap value
d. Payback Period
e. None of the above
17. It refers to the length of time or number of years it will take to recover the initial outlay for
a project.
a. Cost of money
b. Economic life
c. Scrap value
d. Payback Period
e. None of the above
18. The LGU should consider long-term financing for the acquisition, maintenance and
replacement or expansion of physical assets (including land) only if the economic enterprise
would be expected to generate revenue in the near term or if these assets have a useful life of at
least:
a. 1 year
b. 3 years
c. 5 years
d. 10 years
e. None of the above
19. Cash Programming Tools such as Cash Flow Forecast and Cash Flow Analysis can provide
the following information except:
20. When funding competing capital projects, the viability and approvability of the project and
its funding from long-term debt should be assessed based on the following factors except:
ANSWERS
1. d | 2. e | 3. a | 4. c | 5. b | 6. c | 7. a | 8. e | 9. b | 10. d | 11. a | 12. e | 13. b | 14. d |
15. c | 16. b | 17. d | 18. c | 19. a | 20. a
1. It refers to the answerability of every public officer whose duties permit or require the
possession or custody of government funds or property and who shall be accountable therefor
and for the safekeeping thereof in conformity with law.
a. Liability
b. Public Service
c. Accountability
d. Honesty
e. Responsibility
2. The obligation to prudently exercise assigned or imputed authority attaching to the assigned
or imputed role of an individual or group participating in organizational activities or decision.
a. Liability
b. Public Service
c. Accountability
d. Honesty
e. Responsibility
3. The officer of any government agency whose duties permit or require the possession or
custody of government funds or property, (such as the Local Treasurer, Collecting Officer,
Disbursing Officer, Cashier, Paymaster, and Property Officer) who is required by law to render
account to the Commission on Audit.
a. Persons Responsible
b. Accountable Officer
c. Local Treasurer
d. Persons Liable
e. None of the above
4. The persons determined by the auditor to be answerable for an audit disallowance or charge
arising from the post-audit of transaction or examination of the cash and accounts of an
accountable officer.
a. Persons Responsible
b. Accountable Officer
c. Local Treasurer
d. Persons Liable
e. None of the above
5. The persons determined by the auditor to be answerable for compliance with the audit
requirements as called for in the notice of suspension.
a. Persons Responsible
b. Accountable Officer
c. Local Treasurer
d. Persons Liable
e. None of the above
6. A written notification by the Auditor to the agency head and the accountable officer
concerned of the total suspensions, disallowances and charges found in audit, as well as the
settlements thereof.
a. Disallowance
b. Settlement
c. Certificate of Settlement and Balances
d. Termination
e. Suspension
a. Disallowance
b. Settlement
c. Certificate of Settlement and Balances
d. Termination
e. Suspension
8. The deferment of action to allow or disallow in audit a transaction pending compliance with
certain requirements.
a. Disallowance
b. Settlement
c. Certificate of Settlement and Balances
d. Termination
e. Suspension
9. The disapproval in audit of a transaction, either in whole or in part.
a. Disallowance
b. Settlement
c. Certificate of Settlement and Balances
d. Termination
e. Suspension
10. These are items of property, plant and equipment and are referred to as such because of
their permanent nature and because they are not subject to rapid turnover.
a. Quick Assets
b. Liability
c. Fixed Assets
d. Equity
e. Current Assets
a. Equipment
b. Furniture and fixtures
c. Land
d. Office Supplies
e. Building
12. A personal obligation arising from an audit disallowance or charge in the course of post
audit of a transaction or examination of the cash and accounts of an accountable officer.
a. Quick Assets
b. Liability
c. Fixed Assets
d. Equity
e. Current Assets
13. Cash and other assets that are not earmarked for specific purposes other than the payment
of a current liability or a readily marketable investment.
a. Quick Assets
b. Liability
c. Fixed Assets
d. Equity
e. Current Assets
14. A holding that can be converted into cash within a short period of time.
a. Quick Assets
b. Liability
c. Fixed Assets
d. Equity
e. Current Assets
15. It is the process of elevating to the next higher authority a decision, order, or ruling.
a. Settlement
b. Appeal
c. Reconsideration
d. Complaint
e. None of the above
ANSWERS
1. c | 2. e | 3. b | 4. d | 5. a | 6. c | 7. b | 8. e | 9. a | 10. c | 11. d | 12. b 13. e | 14. a | 15.
b
Book Four: Fund Management Practices, Accountability, Cash Examination, Shortages
and Settlement of Accounts of Local Treasurers, and Liabilities of Local Treasurers in the
Administration of Local Taxes, Fees, and Charges
Chapter 2. Accountability, Responsibility, and Liability of Local Treasurers for Funds and
Property
1. When a Local Treasurer or officer accountable for government funds or property absconds
with them, dies, or becomes incapacitated in the performance of his duties, in the case of funds
and property of the province, city and municipality, the designation of a custodian to take
charge of the funds or property until a successor shall have been appointed and qualified shall
be made by:
2. When a loss of government funds or property occurs while they are in transit or the loss is
caused by fire, theft, or other casualty or force majeure, the officer accountable therefor or
having custody thereof shall immediately notify the Commission on Audit or auditor concerned
and, unless the auditor allows a longer period, shall present his application for relief with the
available supporting evidence within:
a. 30 days
b. 45 days
c. 60 days
d. 90 days
e. None of the above
3. The sealing of safe and other cash receptacles shall be resorted to by the examining officer
only in the following exceptional cases except:
5. After the cash examination is completed, the auditor shall prepare and submit a final
narrative report which shall contain:
a. Introduction
b. Findings
c. Recommendations
d. All of the above
e. None of the above
6. A person who, by direct provision of the law, popular election or appointment by competent
authority, shall take part in the performance of public functions in the government, or shall
perform in said government or in any of its branches public duties as an employee, agent, or
subordinate official, of any rank or class.
a. Public officer
b. Accountable officer
c. Auditor
d. Local Treasurer
e. Examining officer
7. Auditors of all government agencies shall certify the balances arising in the accounts settled
by them to the Commission on Audit and to the proper Local Treasurer, Collecting Officer, or
Disbursing Officer, in such form as the Commission on Audit may prescribe, within:
a. 30 days
b. 45 days
c. 60 days
d. 90 days
e. None of the above
8. Unless extended in writing and for good cause, a charge of suspension by the accountable
officer shall become a disallowance if after receipt of the certificate or notice it is not
satisfactorily explained within:
a. 30 days
b. 45 days
c. 60 days
d. 90 days
e. None of the above
9. It summarizes all suspensions, disallowances and charges found in audit, including the
settlements thereof as of a given date.
a. Notice of Suspensions
b. Certificate of Settlement and Balances
c. Notice of Disallowance
d. Notice of Charge
e. Credit Notice
10. It shall be issued as often as suspensions are made by the auditor for the purpose of
notifying the agency head and the accountable officer concerned on the suspended
transactions.
a. Notice of Suspensions
b. Certificate of Settlement and Balances
c. Notice of Disallowance
d. Credit Notice
e. Audit Observation Memorandum
11. It shall be used and issued as often as disallowance are made by the auditor in order to
notify the agency head, the accountable officers concerned, and the other persons liable for the
disallowed transaction.
a. Notice of Suspensions
b. Certificate of Settlement and Balances
c. Notice of Disallowance
d. Notice of Charge
e. Credit Notice
12. It is issued by the auditor to the accountable officer within 30 days from receipt of the
report of disbursements for liquidation of cash advances, to inform the latter of the amount
allowed in audit and any suspensions and/or disallowance made.
a. Notice of Suspensions
b. Certificate of Settlement and Balances
c. Notice of Disallowance
d. Notice of Charge
e. Credit Notice
13. It shall be used and issued as often as charges are made by the auditor to notify the agency
head, accountable officer concerned and other persons liable for the deficiencies noted in the
audit of revenues and receipts.
a. Notice of Suspensions
b. Certificate of Settlement and Balances
c. Notice of Disallowance
d. Notice of Charge
e. Credit Notice
14. The Certificate of Settlement and Balances shall be issued for every accountable officer and
for each fund within:
15. It shall be issued to the agency head and/or other officials concerned relative to the
findings/observations/other deficiencies noted in the audit of accounts/transactions and
requiring comment/reply thereto within the period specified therein.
a. Notice of Disallowance
b. Audit Observation Memorandum
c. Credit Notice
d. Auditor’s Order
e. None of the above
ANSWERS
1. d | 2. a | 3. e | 4. c | 5. d | 6. a | 7. c | 8. d | 9. b | 10. a | 11. c | 12. e | 13. d | 14. a |
15. b
1. It shall be used by the auditor to enforce the settlement of audit disallowances and charges,
whenever the persons liable therefor refuse or fail to voluntarily settle the disallowances and
charges after the decision has become final and executor.
a. Notice of Disallowance
b. Audit Observation Memorandum
c. Credit Notice
d. Auditor’s Order
e. None of the above
2. All transactions which are irregular, unnecessary, excessive and extravagant and those
which are illegal and unconscionable. These are:
3. Transactions or accounts which could otherwise have been settled for some documentary or
technical requirements and those the legality/propriety/regularity of which the auditor doubts,
but which may possibly be allowed in audit after satisfactory explanation or valid justification
by the parties concerned. These are:
5. The liability of public officers and other persons for audit disallowances shall be determined
on the basis of the following except:
6. Unless a request for reconsideration is filed or an appeal is taken, the Report, Certificate of
Settlement and Balances, Order or Decision of the auditor shall become final after notice
thereof to the parties concerned upon the expiration of:
a. 1 month
b. 3 months
c. 6 months
d. 12 months
e. None of the above
7. Under R. A. No. 7160, failure to post and publish the itemized monthly collections and
disbursements of the LGU within the prescribed period shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or
both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its
minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
e. Automatic dismissal from the service after due notice and hearing
8. Under the Revised Penal Code, frauds against the public treasury and similar offenses by a
public officer, such as (1) Demanding, directly or indirectly, the payment of sums different from
or larger than those authorized by law, (2) Failing voluntarily to issue a receipt, as provided by
law, for any sum of money collected by him officially, (3) Collecting or receiving, directly or
indirectly, by way of payment or otherwise, things or objects of nature different from that
provided by law, shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or
both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its
minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
e. Automatic dismissal from the service after due notice and hearing
9. Under R. A. No. 7160 and without prejudice to criminal prosecution under the Revised Penal
Code and other applicable laws, any Local Treasurer who fails to issue or execute the warrant
of distraint or levy after the expiration of the time prescribed, or who is found guilty of abusing
the exercise thereof by competent authority shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or
both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its
minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
e. Automatic dismissal from the service after due notice and hearing
10. Under R. A. No. 7160, the enforcement of any tax ordinance or revenue measure after due
notice of the disapproval or suspension thereof shall be:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or
both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its
minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
e. Automatic dismissal from the service after due notice and hearing
11. Under R. A. No. 7160, failure to collect tax due on real property by any officer or to dispose
of delinquent real property at public auction by the Local Treasurer shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or
both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its
minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
e. Automatic dismissal from the service after due notice and hearing
12. Any public officer who is guilty of the misappropriation or malversation of funds or property
shall suffer the penalty of reclusion temporal in its minimum and medium periods, if the
amount involved is:
13. Any public officer who is guilty of the misappropriation or malversation of funds or property
shall suffer the penalty of prision correccional in its minimum and medium periods, if the
amount involved is:
14. Any public officer who is guilty of the misappropriation or malversation of funds or property
shall suffer the penalty of prision mayor in its maximum period to reclusion temporal in its
minimum period, if the amount involved is:
15. Any public officer who is guilty of the misappropriation or malversation of funds or property
shall suffer the penalty of prision mayor in its maximum and medium periods, if the amount
involved is:
ANSWERS
1. d | 2. a | 3. c | 4. b | 5. e | 6. c | 7. a | 8. c | 9. e | 10. d | 11. b | 12. d | 13. a | 14. c |
15. b
Book Five: Detailed Procedures on Real Property Tax Business Tax Fees and Charges and
Other Resource Mobilization
Chapter 1. Real Property Taxes
1. It refers to the actual cost of the machinery to its present owner, plus the cost of
transportation, handling, and installation at the present site. This is applicable for newly
acquired machinery not yet depreciated and appraised within the year of its purchase.
a. Acquisition Cost
b. Actual Use
c. Ad Valorem Tax
d. Market Value
e. Amortization
2. It is a levy on real property determined on the basis of a fixed proportion of the value of the
real property.
a. Acquisition Cost
b. Actual Use
c. Ad Valorem Tax
d. Market Value
e. Amortization
3. It refers to the principal purpose for which the property is principally or predominantly
utilized by the person in possession thereof.
a. Acquisition Cost
b. Actual Use
c. Ad Valorem Tax
d. Market Value
e. Amortization
a. Appraisal
b. Assessment
c. Assessment Level
d. Re-assessment
e. Improvement
5. It is the act or process of determining the value of property as of a specific date for a specific
purpose.
a. Appraisal
b. Assessment
c. Assessment Level
d. Re-assessment
e. Improvement
6. It is the assigning of new assessed values to property, particularly real estate, as the result
of general, partial, or individual reappraisal of the property.
a. Appraisal
b. Assessment
c. Assessment Level
d. Re-assessment
e. Improvement
7. It is the act or process of determining the value of a property, or proportion thereof subject
to tax, including the discovery, listing, classification, and appraisal of properties.
a. Appraisal
b. Assessment
c. Assessment Level
d. Re-assessment
e. Improvement
8. It is the percentage applied to the fair market value to determine the taxable value of the
property.
a. Appraisal
b. Assessment
c. Assessment Level
d. Re-assessment
e. Improvement
9. It is the price at which a property may be sold by a seller who is not compelled to sell and
bought by a buyer who is not compelled to buy.
a. Assessed Value
b. Depreciated Value
c. Fair Market Value
d. Remaining Value
e. Replacement or Reproduction Cost
10. It is the cost that would be incurred on the basis of current prices, in acquiring an equally
desirable substitute property, or the cost of reproducing a new replica of the property on the
basis of current prices with the same or closely similar material.
a. Assessed Value
b. Depreciated Value
c. Fair Market Value
d. Remaining Value
e. Replacement or Reproduction Cost
11. It is the value remaining after deducting depreciation from the acquisition cost.
a. Assessed Value
b. Depreciated Value
c. Fair Market Value
d. Remaining Value
e. Replacement or Reproduction Cost
12. It is the value corresponding to the remaining useful life of the machinery.
a. Assessed Value
b. Depreciated Value
c. Fair Market Value
d. Remaining Value
e. Replacement or Reproduction Cost
13. It is the fair market value of the real property multiplied by the assessment level. It is
synonymous to taxable value.
a. Assessed Value
b. Depreciated Value
c. Fair Market Value
d. Remaining Value
e. Replacement or Reproduction Cost
14. It embraces machines, equipment, mechanical contrivances, instruments, appliances, or
apparatus which may or may not be attached, permanently or temporarily, to the real property.
a. Useful Life
b. Remaining Economic Life
c. Assets
d. Economic Life
e. Machinery
15. It is the period of time expressed in years from the date of appraisal to the date when the
machinery becomes valueless.
a. Useful Life
b. Remaining Economic Life
c. Assets
d. Economic Life
e. Machinery
16. It is the estimated period over which it is anticipated that a piece of machinery or
equipment may be profitably utilized.
a. Useful Life
b. Remaining Economic Life
c. Assets
d. Economic Life
e. Machinery
17. It is land devoted principally to industrial activity as capital investment and is not classified
as agricultural, commercial, timber, mineral, or residential land.
a. Commercial Land
b. Idle Lands
c. Industrial Land
d. Mineral Lands
e. Residential Land
18. It is land devoted principally for the object of profit and is not classified as agricultural,
industrial, mineral, timber, or residential land.
a. Commercial Land
b. Idle Lands
c. Industrial Land
d. Mineral Lands
e. Residential Land
a. Commercial Land
b. Idle Lands
c. Industrial Land
d. Mineral Lands
e. Residential Land
20. These are lands in which minerals, metallic or non metallic, exist in sufficient quantity or
grade to justify the necessary expenditures to extract and utilized such materials.
a. Commercial Land
b. Idle Lands
c. Industrial Land
d. Mineral Lands
e. Residential Land
ANSWERS
1. a | 2. c | 3. b | 4. e | 5. a | 6. d | 7. b | 8. c | 9. c | 10. e | 11. b | 12. d | 13. a | 14. e |
15. b | 16. d | 17. c | 18. a | 19. e | 20. d
Book Five: Detailed Procedures on Real Property Tax Business Tax Fees and Charges and
Other Resource Mobilization
Chapter 1. Real Property Taxes
1. The appraisal, assessment, levy and collection of real property tax shall be guided by the
following fundamental principles except:
a. Real property shall be appraised at its current and fair market value.
b. Real property shall be classified for assessment purposes on the basis of its potential use.
c. Real property shall be assessed on the basis of a uniform classification within each local
government unit.
d. The appraisal, assessment, levy and collection of real property tax shall not be let to any
private person.
e. The appraisal and assessment of real property shall be equitable.
2. A province or city or municipality within Metropolitan Manila Area shall fix a uniform rate of
basic real property tax applicable to their respective jurisdiction. For provinces, at what
maximum rate of the Assessed Value should the levy be?
a. 1%
b. 2%
c. 3%
d. 5%
e. 10%
3. A province or city or municipality within Metropolitan Manila Area shall fix a uniform rate of
basic real property tax applicable to their respective jurisdiction. For cities, or municipalities of
Metropolitan Manila Area, at what maximum rate of the Assessed Value should the levy be?
a. 1%
b. 2%
c. 3%
d. 5%
e. 10%
4. For additional Ad Valorem Tax on idle lands, at what maximum rate of the assessed value of
the property may a province or city, or a municipality within the Metropolitan Manila Area levy
an annual tax in addition to the basic real property tax?
a. 1%
b. 2%
c. 3%
d. 5%
e. 10%
5. For additional levy on real property tax for the Special Education Fund outside of
Metropolitan Manila Area, who has the authority to impose the additional SEF tax?
a. Local Treasurer
b. Local Chief Executive
c. Barangay Chairman
d. Municipality
e. Province
6. A province, city or municipality may impose a special levy on the lands comprised within its
territorial jurisdiction specially benefited by public works projects or improvements funded by
the LGU concerned. The tax ordinance imposing the levy shall meet the following requirements
except:
a. Describe with reasonable accuracy the nature, extent, and location of the public works
projects or improvements to be undertaken.
b. State the estimated cost of the public works projects or improvements.
c. Identify the lands and owners to be affected or the persons having legal interest therein.
d. Specify the meters and bounds by monuments and lines.
e. Specify the number of annual installments for the payment of the special levy.
7. The following are exempt from real property tax except:
a. Autonomous regions
b. Government-Owned or Controlled Corporations
c. Provinces and sub-provinces
d. Cities and municipalities
e. Barangays
8. It refers to any agency of National Government, not integrated within the department
framework, vested with special functions or jurisdiction by law, endowed with some if not all
corporate powers, administering special funds, and enjoying autonomy, usually through a
charter.
9. The real properties owned by the following government-owned or controlled corporations are
not exempt from the real property tax except:
10. The real property tax for any year shall accrue and constitute a lien on the property which
shall be superior to any lien, mortgage, or encumbrance of any kind whatsoever, and shall be
extinguished only upon the payment of the delinquent tax, on:
a. April 15
b. January 1
c. January 31
d. September 30
e. December 31
11. The Provincial, City or Municipal Assessor shall prepare and submit to the Treasurer of the
LGU an assessment roll containing a list of all persons whose real properties have been newly
assessed or re-assessed and the values of such properties, on:
a. April 15
b. January 1
c. January 31
d. September 30
e. December 31
12. For the current year, the City or Municipal Treasurer shall, in the case of the basic real
property tax for the SEF, post the notice of the dates when the tax may be paid without interest
at a conspicuous and publicly accessible place at the city or municipal hall, on or before:
a. April 15
b. January 1
c. January 31
d. September 30
e. December 31
13. The owner of the real property or the person having legal interest therein may pay the real
property tax and the additional tax for SEF due thereon, without interest, in 4 equal
installments, to be due and payable as follows:
a. 30 days
b. 45 days
c. 60 days
d. 6 months
e. 2 years
15. The Provincial, City Treasurer, or Municipal Treasurer in the case of a municipality within
Metropolitan Manila Area shall decide the protest filed by the taxpayer when the payment was
made under protest, within:
a. 30 days
b. 45 days
c. 60 days
d. 6 months
e. 2 years
ANSWERS
1. b | 2. a | 3. b | 4. d | 5. e | 6. c | 7. b | 8. d | 9. e | 10. b | 11. e | 12. c | 13. c | 14. a |
15. c
Book Five: Detailed Procedures on Real Property Tax Business Tax Fees and Charges and
Other Resource Mobilization
Chapter 1. Real Property Taxes
1. An act providing for the recognition and use of electronic commercial and non-commercial
transactions, penalties for unlawful use thereof, and other purposes.
a. R. A. No. 7160
b. R. A. No. 6657
c. R. A. No. 6810
d. R. A. No. 8792
e. R. A. No. 7279
2. An act instituting a comprehensive agrarian reform program to promote social justice and
industrialization providing the mechanism for its implementation and for other purposes.
a. R. A. No. 7160
b. R. A. No. 6657
c. R. A. No. 6810
d. R. A. No. 8792
e. R. A. No. 7279
3. The basic real property tax and any other tax levied under Title 2, Book II of R. A. No. 7160
shall, from the date they become due, be collected within:
a. 5 years
b. 7 years
c. 10 years
d. 15 years
e. 20 years
4. In case of fraud or intent to evade payment of the real property tax, an administrative or
judicial action may be instituted for the collection of the same, from the discovery of such fraud
or intent to evade payment, within:
a. 5 years
b. 7 years
c. 10 years
d. 15 years
e. 20 years
5. The period of prescription within which to collect the real property tax levied under Title 2,
Book II of R. A. No. 7160 shall be suspended for the time during any the following scenarios
except:
6. The Warrant of Levy shall be mailed to or served upon the delinquent real property owner or
person having legal interest therein, and after receipt of the same, the levying officer shall
submit a report on the levy to the sanggunian concerned within:
a. 3 days
b. 5 days
c. 10 days
d. 15 days
e. 30 days
7. After service of the Warrant of Levy, the Local Treasurer shall proceed to publicly advertise
for sale or auction the property or a usable portion thereof as may be necessary to satisfy the
tax delinquency and expenses of sale which shall be effected by the issuance of a Notice of Sale
and the posting and publication thereof, within:
a. 3 days
b. 5 days
c. 10 days
d. 15 days
e. 30 days
8. It is issued by the Local Treasurer concerned, together with the official receipt and tax
clearance which shall in effect extinguish the tax lien on the property if the owner of the real
property or person having legal interest therein pays the delinquent tax, the interest due
thereon and the expenses of sale before the date fixed for the sale.
a. Certificate of Release
b. Proof of Service
c. Warrant of Levy
d. Certificate of Redemption
e. Certificate of Sale
9. It is issued by the Local Treasurer to the purchaser containing the name of the purchaser, a
description of the property sold, the amount of the delinquent tax, the interest due thereon, the
expenses of sale and brief description of the proceedings.
a. Certificate of Release
b. Proof of Service
c. Warrant of Levy
d. Certificate of Redemption
e. Certificate of Sale
10. It is issued by the Local Treasurer to the owner of the delinquent real property or person
having legal interest therein invalidating the Certificate of Sale issued to the purchaser if he
pays the amount of the delinquent tax, including the interest due thereon and the expenses of
the sale plus interest of 2% per month within one year from date of sale.
a. Certificate of Release
b. Proof of Service
c. Warrant of Levy
d. Certificate of Redemption
e. Certificate of Sale
11. In case there is no bidder for the real property advertised for sale, the local Treasurer shall
purchase the property in behalf of the LGU concerned. The taxpayer or any of his
representative may redeem the property by paying to the Local Treasurer the full amount of the
real property tax and the related interest and cost of the sale within:
a. 6 months
b. 1 year
c. 2 years
d. 3 years
e. 5 years
12. For real estate taken for taxes, fees or charges, the sanggunian concerned may, by
ordinance duly approved, may dispose of the real property acquired under Section 263 of R. A.
No. 7160 at public auction, upon notice of not less than:
a. 5 days
b. 15 days
c. 20 days
d. 30 days
e. None of the above
13. The proceeds of the basic real property tax, including interest thereon, and proceeds from
the use, lease or disposition, sale or redemption of property acquired by public auction by the
province shall be distributed accordingly. At what percentage of the proceeds will accrue to the
General Fund of the province?
a. 35%
b. 70%
c. 40%
d. 50%
e. 25%
14. The proceeds of the basic real property tax, including interest thereon, and proceeds from
the use, lease or disposition, sale or redemption of property acquired by public auction by the
province shall be distributed accordingly. At what percentage of the proceeds will accrue to the
barangay where the property is located?
a. 35%
b. 70%
c. 40%
d. 50%
e. 25%
15. The proceeds of the basic real property tax, including interest thereon, and proceeds from
the use, lease or disposition, sale or redemption of property acquired by public auction by the
province shall be distributed accordingly. At what percentage of the proceeds will accrue to the
General Fund of the municipality where the property is located?
a. 35%
b. 70%
c. 40%
d. 50%
e. 25%
ANSWERS
1. d | 2. b | 3. a | 4. c | 5. b | 6. c | 7. e | 8. a | 9. e | 10. d | 11. b | 12. c | 13. a | 14. e |
15. c
Book Five: Detailed Procedures on Real Property Tax Business Tax Fees and Charges and
Other Resource Mobilization
Chapter 1. Real Property Taxes
1. The proceeds of the basic real property tax, including interest thereon, and proceeds from
the use, lease or disposition, sale or redemption of property acquired by public auction by the
city shall be distributed accordingly. At what percentage of the proceeds will accrue to the
General Fund of the city?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
2. The proceeds of the basic real property tax, including interest thereon, and proceeds from
the use, lease or disposition, sale or redemption of property acquired by public auction by the
province shall be distributed accordingly. At what percentage of the proceeds will accrue to the
barangay where the property is located or equally to all component barangays of the city?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
3. The proceeds of the basic real property tax, including interest thereon, and proceeds from
the use, lease or disposition, sale or redemption of property acquired by public auction by the
province shall be distributed accordingly. At what percentage of the proceeds shall be
distributed among the component barangays of the cities where the property is located?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
4. These are those imposed by a local government unit on the privilege of engaging in business,
occupation and other activities within its territorial jurisdiction.
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
5. It includes the yield of the soil, such as corn, rice, wheat, rye, hay, coconuts, sugarcane,
tobacco, root crops, vegetables, fruits, flowers and their by-products; ordinary salt; all kinds of
fish; poultry; and livestock and animal products, whether in their original form or not.
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
7. These include theaters, cinemas, concert halls, circuses and other places of amusement
where one seeks admission to entertain oneself by seeing or viewing the show or performance.
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
a. Central Bank
b. Credit card companies
c. Banks and other financial institutions
d. Financial service providers
e. Banking investments
10. It is the capital which a person employs in any undertaking, or which he contributes to the
capital of a partnership, corporation, or any other juridical entity or association in a particular
taxing jurisdiction.
a. Corporation
b. Capital Investment
c. Contractor
d. Countryside and Barangay Business Enterprise
e. Charges
11. These refer to pecuniary liability, as rents or fees against persons or property.
a. Corporation
b. Capital Investment
c. Contractor
d. Countryside and Barangay Business Enterprise
e. Charges
12. It includes persons, natural or juridical, not subject to professional tax under Section 139
of R. A. No. 7160, whose activity consists essentially of the sale of all kinds of services for a fee,
regardless of whether or not the performance of the service calls for the exercise or use of the
physical or mental faculties of the contractor or his employees.
a. Corporation
b. Capital Investment
c. Contractor
d. Countryside and Barangay Business Enterprise
e. Charges
13. It includes partnerships, no matter how created or organized, joint-stock companies, joint
accounts (cuentas en participacion), associations or insurance companies.
a. Corporation
b. Capital Investment
c. Contractor
d. Countryside and Barangay Business Enterprise
e. Charges
14. It refers to any business entity, association, or cooperative registered under the provisions
of R. A. No. 6810.
a. Corporation
b. Capital Investment
c. Contractor
d. Countryside and Barangay Business Enterprise
e. Charges
15. It means one whose business is to buy and sell merchandise, goods, and chattels as a
merchant. He stands immediately between the producer or manufacturer and the consumer
and depends for his profit not upon the labor he bestows upon his commodities but upon the
skill and foresight with which he watches the market.
ANSWERS
1. b | 2. d | 3. a | 4. c | 5. b | 6. e | 7. a | 8. d | 9. c | 10. b | 11. e | 12. c | 13. a | 14. d |
15. b
Book Five: Detailed Procedures on Real Property Tax Business Tax Fees and Charges and
Other Resource Mobilization
Chapter 2. Business and Other Local Taxes
1. It means a charge fixed by law or ordinance for the regulation or inspection of a business or
activity.
2. It is a right or privilege, affected with public interest which is conferred upon private persons
or corporations, under such terms and conditions as the government and its political
subdivisions may impose in the interest of public welfare, security, and safety.
3. It included the total amount of money or its equivalent representing the contract price,
compensation or service fee, including the amount charged or materials supplied with the
services and the deposits or advance payments actually or constructively received during the
taxable quarter for the services performed or to be performed for another person.
4. It includes every person who, by physical or chemical process, alters the exterior texture or
form or inner substance of any raw material or manufactured or partially manufactured
product in such manner as to prepare it for special use or uses to which it could not have been
put in its original condition.
a. Marginal Farmer or Fisherman
b. Manufacturer
c. Municipal Waters
d. Motor Vehicle
e. Businessman
6. It means any vehicle propelled by any power other than muscular power using the public
roads, but excluding road rollers, trolley cars, street sweepers, sprinkles, lawn mowers,
bulldozers, graders, forklifts, amphibian trucks, and cranes.
7. It include streams, lakes, tidal waters within the municipality, marine waters included
between two lines drawn perpendicularly to the general coastline from points where the
boundary lines of the municipality or city touch the sea at low tide and a third line parallel
with the general coastline and 15 kilometers from it.
8. It includes the owner, manager, administrator, or any other person who operates or is
responsible for the operation of a business establishment or undertaking.
a. Residents
b. Peddler
c. Persons
d. Operator
e. Civilian
9. It means any person who, either for himself or on commission, travels from place to place
and sells his goods or offers to sell and deliver the same.
a. Residents
b. Peddler
c. Persons
d. Operator
e. Civilian
10. They refer to every natural or juridical being, susceptible of rights and obligations or of
being the subject of legal relations.
a. Residents
b. Peddler
c. Persons
d. Operator
e. Civilian
11. It refer to natural persons who have their habitual residence in the province, city, or
municipality where they exercise their civil rights and fulfill their civil obligations, and to
juridical persons for which the law or any other provisions creating or recognizing them fixes
their residence in a particular province, city or municipality.
a. Residents
b. Peddler
c. Persons
d. Operator
e. Civilian
12. It means a sale where the purchaser buys the commodity for his own consumption
irrespective of the quantity of the commodity sold.
a. Wharfage
b. Wholesale
c. Retail
d. Vessel
e. Operator
13. It includes every type of boat, craft, or other artificial contrivance used, or capable of being
used, as means of transportation on water.
a. Wharfage
b. Wholesale
c. Retail
d. Vessel
e. Operator
14. It means a fee assessed against the cargo of a vessel engaged in foreign or domestic trade
based on quantity, weight, or measure received and/or discharged by vessel.
a. Wharfage
b. Wholesale
c. Retail
d. Vessel
e. Operator
15. It means a sale where the purchaser buys or imports the commodities for resale to persons
other than the end user regardless of the quantity of the transaction.
a. Wharfage
b. Wholesale
c. Retail
d. Vessel
e. Operator
ANSWERS
1. d | 2. c | 3. a | 4. b | 5. a | 6. d | 7. c | 8. d | 9. b | 10. c | 11. a | 12. c | 13. d | 14. a |
15. b