lOM oARcPSD|5800571

NAME: __________________________________________ 6. It is an authorization issued by the DBM to NGAs

SECTION: ________________________________________ to incur obligations. It is also referred to as
Obligational Authority.
ASSIGNMENT NO. 2 a. Appropriation
Overview of Government Budget Process b. Allotment
c. Budget call
MULTIPLE CHOICE (Encircle the letter of your final answer) d. Budget hearings

1. Which of the following does not 7. It refers to the amount contracted by a duly
properly described the budget authorized administrative officer for which
process used in the Philippines? the government is held liable.
a. Bottom-up budgeting a. Appropriation
b. Top-down budgeting b. Allotment
c. Zero-based budgeting c. Obligation
d. Non-incremental budgeting d. Disbursement

2. Arrange the following steps according to the 8. Which of the following best describes the Notice of
sequence that they appear in the budget cycle. Cash Allocation (NCA)?
I. Allotment a. It is a form of legislative authorization in the
II. Bicameral Deliberations allocation of funds for specified purposes.
III. Budget Accountability Reports b. It is a form of authorization to a government
IV. President’s enactment of the GAA agency to incur obligations on behalf of the
V. Budget hearings with the DBM government.
a. V, IV, II, I and III c. It is a form of authorization to a government
agency to make disbursements out of
b. V, II, IV, I and III
government funds.
c. II, V, II, I and III
d. It is a notice received from the Congress that
d. V, I, II, IV and III
cash is allocated for the payment of planned
expenditures
3. Arrange the following steps according to the
9. Disbursements by government entities are most
sequence that they appear in the budget cycle.
commonly made through
I. Allotment
a. MDS Checks
II. Disbursement Authority
b. Cash
III. Disbursement
c. Petty Cash Fund
IV. Appropriation
d. Credit Card
V. Incurrence of obligation
a. IV, I, II, V and III
10. Responsibility accounting requires all of the following
b. IV, I V, III and II except
c. IV, I, V, II and III
a. separate books of accounts to segregate
d. IV, V, I, II and III
controllable and non-controllable costs
b. identification of responsibility centers
4. This type of budget is prepared in such a way
c. distinction between controllable and non-
that estimated revenues exceed estimated
controllable costs
expenditures.
d. coding structure for responsibility centers
a. Balance budget
b. Excess budget
A legislation approves the allocation of P100B funds to
c. Obligations budget
support the operations of Entity A (a government
d. Budget meal
agency) in the current year. At the start of first
quarter, Entity A receives authorization to incur
5. This summarized an agency’s fiscal year plans
obligations for a maximum amount of P45B in that
and performance targets. It shows the
quarter. Entity A extends half of that authorization to
agency’s physical and financial plan, monthly
its lower operating units. During the quarter, Entity A
cash program, estimate of monthly income,
receives monthly authorization to disburse funds not
and list of obligations that are not year due
to exceed P15B per month. Entity A extends half of
and demandable.
those monthly authorizations to its lower operating
a. Budget Execution Documents (BEDs) units. At the end of the quarter, total obligations
b. Special Allotment Release Order incurred amounted to P40B while total disbursements
c. Statement of Approved Budget, Utilizations, amounted to P35B.
Disbursements and Balances
d. Aging of Due and Demandable Obligations 11. The allocation of the P100B funds to Entity A is
referred to as
 a. Allotment Obligations, Disbursements and
b. Appropriation Balances, how much is shown as
c. Obligation “unreleased appropriations?”
d. Sub-allotment a. P65B
b. P60B
12. The allocation of the P100B funds to Entity A is c. P55B
authorized by d. P45B
a. Department of Budget and Management (DBM)
b. Commission on Audit (COA) 20. In Entity A’s first quarter
c. Bureau of Treasury (BTr) Statement of Appropriations,
d. Congress Allotments, Obligations,
Disbursements and Balances, how
13. The P45B authorization is referred to as much is shown as “unobligated
a. Allotment allotments?”
b. Appropriation a. P6B
c. Obligation b. P5B
d. Sub-allotment c. P10B
d. P15B
14. The P45B authorization is received by Entity A from
a. DBM 21. In Entity A’s first quarter
b. COA Statement of Appropriations,
c. BTr Allotments, Obligations,
d. Congress Disbursements and Balances,
how much is shown as “unpaid
obligations?”
15. The half of the P45B authorization a. P6B
extended by Entity A (Central Office) to b. P5B
its lower operating units is referred to c. P10B
as
d. P15B
a. Allotment
b. Appropriation
22. All disbursements of government entities must be
c. Obligation
in conformance with the law and the
d. Sub-allotment
a. National budget
b. COA audit findings
16. Which of the following best describes the P15B
c. PPSASs
monthly authorizations?
d. PFRSs
a. Allotment
b. Obligation authority (e.g., Notice of Cash 23. An entity prepares its budget for the upcoming
Allocation ‘NCA’) year from scratch. It scrutinizes each item in the
c. Disbursement authority (e.g., Notice of Cash budget irrespective of whether the item was
Allocation ‘NCA’) included in the previous budget. This process is
d. Disbursement authority (e.g., Notice of Transfer called
of Allocation ‘NTA’) a. zero budgeting
b. incremental budgeting
17. The P15B monthly authorizations are received by c. scratch budgeting
Entity A from d. zero-based budgeting
a. DBM
b. COA 24. Under this approach to budgeting, several
c. BTr parties participate in the budget preparation
d. Congress – from the lowest levels of government to the
highest levels, and sometimes even citizen-
18. The half of the P15B monthly authorizations stakeholders participate in the budget
extended by Entity A (Central Office) to its lower preparation.
operating units is referred to as a. bottoms-up budgeting
a. Cash Disbursement Ceiling b. zero-based budgeting
b. Non-Cash Availment Authority c. top-down budgeting
c. Notice of Cash Allocation (NCA) d. bottom-up budgeting
d. Notice of Transfer of Allocation (NTA)

19. In Entity A’s first quarter Statement of

Appropriations, Allotments,
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25. What is the correct sequence of the following steps TRUE OR FALSE (Write True if the statement is correct and
in the budget process? False if the statement is wrong)
I. Budget Legislation
II. Budget Accountability ______1. Technically, only the Journals and Ledgers are
III. Budget Preparation considered accounting records;
IV. Budget Execution the Registries are budget records.
a. II, III, I and IV ______2. Separate accounting records and budget registries
b. III, I, IV and II are maintained for each
c. III, I, II and IV fund cluster.
d. III, IV, I and II ______3. Government entities and business entities use the
term "obligation" or the
26. After deliberation in both houses in the phrase "incurrence of obligation" similarly.
Congress are finished, a committee is formed ______4. The various registries maintained by government
to harmonize any conflicts between the entities primarily serve as
Representatives and Senate versions of the internal control for controlling and monitoring the
General Appropriations Bill. This committee is conformance of actual results with the approved budget.
called the ______5. A check disbursement is normally recorded as
a. Adjudication Conference Committee credit to the "Cash-Modified Disbursement System (MDS)
b. Bicaramel Conference Committee Regular" account.
c. Referee Conference Committee ______6. Both the ORS and RAOD are updated each time an
d. Bicameral Conference Committee obligation is incurred, a payable is recorded for the
obligation incurred, and disbursements are made to
27. It is the authorization made by a legislative body settle the recorded payables.
to allocate funds for purposes specified by the ______7. At the end of each year, an adjustment is made to
legislative or similar authority. revert any unused NCA of a
a. Appropriation government entity.
b. Allotment ______8. The GAM for NGAs requires the Collecting Officer
c. Obligation to issue an official receipt to
d. Disbursement acknowledge the receipt of the Notice of Cash Allocation.
______9. The entry to record the reversion of unused NCA
28. These are the authorizations programmed at the end of the period is the
annually or for some other period prescribed by exact opposite of the entry used to record the receipt of
law, by virtue of outstanding legislation which NCA.
does not require periodic action by Congress. ______10. The remittance of amounts withheld to other
a. Automatic Appropriations government agencies, such as the
b. New General Appropriations BIR, BOC, GSIS, PhilHealth, and Pag-IBIG, is done through the
c. Continuing Appropriations TRA.
d. Supplemental Appropriations
IDENTIFY THE FOLLOWING EXPENSE ACCOUNTS
29. Entity A, a government entity, wants to make Write PS for Personal Services, MOOE for Maintenance and
disbursements. Arrange the following events in Other Operating Expenses, CO for Capital Outlay, and FE for
the correct sequence before Entity A can make Financial Expenses.
valid disbursements.
I. Allotment ______1. Roads, Highways and Bridges
II. Disbursement Authority ______2. Personal Economic Relief Allowance
III. Appropriation ______3. Representation Expense
IV. Incurrence of obligation ______4. Terminal Leave Benefits
a. II, III, I, and IV ______5. Interest Expense
b. III, I, IV, and II ______6. Intelligence Expense
c. III, I, II, and IV ______7. Honoraria
d. III, IV, I, and II ______8. Documentary Stamp Expense
______9. Cash Gift
30. This is necessary before government ______10. Subscription Expense
entities can enter into contracts that
bind the government for the eventual
disbursement of government funds.
a. Disbursement authority
b. Notice of cash allocation
c. Allotment
d. Incurrence of obligation