Prelim Examination

Subject: Accounting for Government and Non-Profit Organization

I. True of False

Instruction: Write TRUE if the statement is correct or FALSE if the statement is incorrect and
replace the underlined word (if there’s any).

1. In Double Entry Bookkeeping system, two accounting entries are required to record
each accounting transactions. This means that whenever there is a debit in an asset
there must be corresponding credit to liabilities or equity.

2. Responsibility accounting is a system that relates the financial results to a specific

center, which provides access to cost and revenue information under the supervision of
a manager having direct involvement for its performance.

3. Bureau of Treasury shall control and monitor the Notice of Cash Allocation (NCA)
released by the Department of Finance; as well as the bank transfers it makes in
replenishing its Modified Disbursement System accounts.

4. PSASB issues exposure drafts of some proposed PPSAS for comment by interested
parties including COA officials and auditors, agency, finance personnel, oversight
agencies, professional organizations, academe and other stakeholders.

5. The Registry of Appropriation and Allotments (RAPAL) shall be maintained to monitor

appropriation and allotments charged thereto.

6. According to Joint Circular No. 2013-1 dated August 6, 2013, the Department of
Budget and Management (DBM), Commission on Audit (COA), Department of Finance
(DOF), and Bureau of Treasury (BTr) jointly developed the Unified Accounts Code
Structure (UACS).

7. The key purpose of UACS is to enable the timely and accurate reporting of actual
revenue collections and expenditures against budgeted programmed revenues and
expenditures.

8. Off-Budgetary Funds are funds available for any purpose that Congress may choose to
apply, and composed of all receipts or revenues that do not otherwise acrrue to other
funds.
9. Special Accounts in the General Fund are lump-sum funds included in the General
Appropriation Act which are not within the approved appropriation of
department/agencies/lower level operating units and which are available for allocation
to any department/agencies/lower level operating units or LGU for a specific purpose,
as may be duly approved in accordance with special provision on the use of these
funds.

10. Staff Bureau is principal subdivision of a department which primary performs policy,
program development, and advisory functions.

Page 1 of 8
II Multiple Choice

Instruction: Choose the BEST answer

1. It is the process of analyzing, recording, classifying, summarizing and communicating

all transactions involving the receipt and disposition of government funds and property
and interpreting the results thereof.

a. Government Auditing
b. Government Budgeting
c. Government Accounting
d. National Government

2. Which is not charged with the government accounting responsibility?

a. Commission on Audit
b. Department of Budget and Management
c. National Government Agencies
d. Legislative Department

3. What is the role of the Bureau of Treasury in relation to government accounting

responsibility?

a. To receive and keep national funds and manage or control disbursements thereof.
b. To design, prepare and approve the accounting systems of government agencies.
c. To keep the general accounts of the national government.
d. To prepare the annual financial report of the national government, its
instrumentalities and government-owned or controlled corporations.\

4. What is the legal basis of the Commission on Audit in promulgating accounting and
auditing rules and regulations?

a. PD 1445
b. Constitution of the Republic of the Philippines
c. COA Circular No. 2002-003
d. PD 1445 and Constitution of the Republic of the Philippines

5. According to COA Cir. No. 2013-002 dated January 30, 2013, the New Government
Accounting System, effective January 1, 2014, uses a standard chart of accounts with

a. Three digits
b. Four digits
c. Five digits
d. Eight digits

Page 2 of 8
6. The books of original entry shall be used to record, in the time sequence, financial
transactions and information presented in duly certified and approved accounting
documents. What is the basis in recording the financial transactions in the journal?

a. Journal Entry Voucher

b. Journal of Check Issued
c. Journal and Analysis of Obligations
d. Journal of Bills Rendered

7. This is an authorization issued by the Department of Budget and Management to

government agencies to withdraw cash from the National Treasury through the
issuance of Modified Disbursement System checks or other authorized made of
disbursements.

a. Allotment
b. MDS Checks
c. Notice of Cash Allocation
d. Appropriation

8. The Department of Budget and Management, Department of Finance, Bureau of

Treasury, and Commission on Audit are collectively responsible for the Unified
Accounts Code Structure (UACS). Who is responsible for the validation and assignment
of new codes for funding source, organization, sub-object codes for the expenditure
items?

a. Department of Budget and Management

b. Department of Finance
c. Bureau of Treasury
d. Commission on Audit

9. The Department of Management, Department of Finance, Bureau of Treasury, and

Commission on Audit are collectively responsible for the Unified Accounts Code
Structure. Who is responsible for the consistency of account classification and coding
structure with the Revised Chart of Accounts?

a. Department of Budget and Management

b. Department of Finance
c. Bureau of Treasury
d. Commission on Audit

10. The Department of Budget and Management, Department of Finance, Bureau of

Treasury, and Commission on Audit are collectively responsible for the Unified
Accounts Code Structure (UACS). Who is responsible for the consistency of account
classification and coding standards with the Government Finance Statistics?

a. Department of Budget and Management

b. Department of Finance
c. Commission on Audit

Page 3 of 8
 d. All of them are responsible.

11. The Philippine Public Sector Accounting Standards (PPSAS) shall be applied to the
following, except:

a. National Government Agencies

b. Government Business Enterprises
c. Local Government Units
d. Government-Owned and Controlled Corporation

12. Its function is to assist the Commission on Audit in formulating and implementing
Philippine Public Sector Accounting Standards.

a. Board of Accountancy
b. Philippine Institute of Certified Public Accountant
c. Public Sector Accounting Standards Board
d. Philippine Accounting Standard Committee

13. The Registry shall be maintained by the fund cluster by the Budget Division/Unit of
each government entity to ensure that allotment releases are within the authorized
appropriation.

a. Registry of Allotment and Notice of Allocation

b. Registry of Appropriation and Allotments
c. Registry of Budget, Utilization and Disbursements
d. Registry of Allotment, Obligation and Disbursement

14. The Registry shall be maintained by Appropriation Act, by fund Cluster, by Major Fund
Output Program/Activity/Project for personnel services.

a. Registry of Allotment, Obligation and Disbursement – Personnel Services

b. Registry of Budget, Utilizations and Disbursement – Personnel Services
c. Registry of Allotments and Notice of Transfer of Allocations
d. Registry of Revenue and Other Receipts.

15. This form shall be used by the originating offices in the utilization of their approved
budget allocation for off-budgetary and custodial funds, such as SAGF, Internally
Generated Funds.

a. Budget Utilization Request Status

b. Obligation Request Status
c. Notice of Budget Utilization Request and Status Adjustments
d. Registry of Revenue and Other Receipts – Internally Generated Funds/Business
Related Funds.

16. It refers to an accounting entity for recording expenditures and revenue associated with
the specific activity for which accounting records are maintained and periodic reports
are prepared.

Page 4 of 8
 a. Financial accounting and reporting
b. Public Sector accounting and reporting
c. Fund cluster accounting
d. Responsibility accounting

17. It is the accrual or cash basis of accounting as defined in the accrual basis
International Public Sector Accounting Standards (IPSAS) and cash basis (IPSAS)

a. Accounting Basis
b. Accounting Policy
c. Accounting Standards
d. Modified accrual basis

18. This journal shall be maintained by fund cluster. Only the transactions not recorded in
the Special Journals shall be recorded in this journal.

a. General Journal
b. Cash Disbursement Journal
c. Check Disbursement Journal
d. Advice to debit account disbursement journal

19. One of the key elements of Unified Accounts Code Structure (UACS) is the Funding
Source Codes. Which of the following is NOT part of Funding Source Codes?

a. Revised Chart of Accounts

b. Financing Source
c. Authorization
d. Fund Category

20. Location Code is a nine-digit code to reflect different area following the Philippine
Standard Geographic Code prescribed by the National Statistical Coordination Board.
Which is the following area is NOT covered by Location Codes under UACS?

a. Province
b. Municapality
c. Barangay
d. Street

21. Organization Code is one of the key elements of Unified Accounts Codes Structure
(UACS). Which of the following is NOT one of those reflected by this element?

a. Department
b. Agency
c. Operating Unit
d. Government-Owned and Controlled Corporation

Page 5 of 8
22. For the purpose of Unified Accounts Codes Structure (UACS), Constitutional Offices,
Judiciary and the Legislature are categorized as:

a. Lower-level operating unit

b. Sub-agency
c. Agency
d. Department

23. It is an integrated group activities that contributes to an agency or department’s

continuing objective.

a. Major Final Output (MFO)

b. Program
c. Activity
d. Project

24. It refers to any various units of the government, including an office, instrumentality of
GOCC that may not approximate the size of a department, but which nonetheless
performs tasks that are equally important and whose are of concern is nationwide in
scope.

a. Central Office
b. Operating Unit
c. Agency
d. Bureau

25. According to Joint Circular No. 2013-1 dated August 6, 2013, the following
departments jointly developed the Unified Accounts Code Structure (UACS), except

a. Department of Budget and Management

b. Joint Legislative-Executive Council
c. Department of Finance
d. Commission on Audit

26. It is a political corporate unit of the government which serves as a dynamic mechanism
for developmental process and effective governance of local government units within its
territorial jurisdiction.

a. Region
b. Province
c. Municipality
d. Barangay

27. It is the fund available for any purpose that Congress may choose to apply and
composed of all receipts or revenues that do not otherwise accrue to other funds.

a. Custodial Fund
b. General Fund

Page 6 of 8
 c. Off-budgetary Fund
d. Revolving Fund

28. These are annual authorization for incurring obligations, in terms of specified amounts
for Personnel Services, Maintenance and Other Operating Expenses, Financial
Expenses, and Capital Outlays during a specified budget year, as listed in the General
Appropriation Act.

a. Automatic Appropriation
b. Continuing Appropriation
c. Supplemental Appropriation
d. New general Appropriation

29. Entity A acquires equipment from a supplier, on account. A lender settles the account
of Entity A by directly paying the supplier the proceeds of a loan payable that is
recorded in the BTr’s books. This mode of disbursement is called
a. Cash Disbursement Ceiling (CDC)
b. Advice to Debit Account (ADA)
c. Non-Cash Availment Authority (NCAA)
d. Notice of Transfer of Allocation (NTA)

30. Under this type of disbursement authority, disbursements are made out of the entity’s
own bank account rather than through the Treasury Single Account.
a. Disbursement through Advice to Debit Account (ADA)
b. Disbursement through Cash Disbursement Ceiling (CDC)
c. Disbursement through electronic Modified Disbursement System (eMDS)
d. Disbursement through Non-Cash Availment Authority (NCAA)

Page 7 of 8
III Match Column A with Column B
Column A
1. Fundamental issues
2. Statutory Authority
3. Lower level Operating Unit Code
4. Agency Code
5. Department Code
6. Revolving funds
7. Retained Income Fund
8. Automatic Appropriation
9. Continuing Appropriation
10. Trust Receipt
“Go ahead and be lazy; sleep on, but you will go hungry.”
Column B
a. No description provided
b. Refer to the assigned code for the individual
operating units without reference to Region Code
c. Where accounting principle or a significant element
of a disclosure requirement contained in IPSAS is
considered to be conflict with the Philippine laws,
rules and regulations, this would be regarded as a
fundamental issue and the accounting principle or
disclosure requirement may be changed.
d. Refers to any of the various unit of the
government, including an office, instrumentality or
GOCC that may approximate the size of department,
but which nevertheless performs tasks that are
equally important and whose areas of concern is
nationwide in scope.
e. Where the international standard deviates from the
Philippine regulatory or legislative environment,
Philippine application guidance shall be issued
accordingly.
f. It is primary subdivision of the Executive Branch
responsible for the overall management of a sector or
a permanent national concern with nationwide or
international impact
g. Are receipts that are officially in the possession of
government agencies or public officer as agent, or
administrator or which have been received for the
fulfilment of particular obligation.
h. are collections that are authorized by law to be
used directly by agencies fir their operation or
specific purpose
i. are standby appropriation for priority program or
project of the government
j. Authorization made annually or for some other
periods prescribed by law by virtue of standing
legislation, which do not require periodic action by
the Congress
k. Appropriations enacted by Congress to augment
original appropriations that have proven insufficient
for intended purpose because of economic, political or
social condition.
l. Are annual authorizations for incurring obligations,
in terms of specific amounts of Personnel Services
(PS), Maintenance and Other Operating Expenses
(MOOE), Financial Expenses and Capital Outlays,
during a specified budget year
m. no description provided
(Proverbs 19:15)
- END –
Page 8 of 8