Accounting Gov Reviewer

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Accounting-Gov-Reviewer
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Quizziz Midterm Exam

Questions Answers
1. The carrying amount of inventory is not The inventory is used in the
recognized as expense in this type of event production of another asset.
or transaction.
2. The President’s explanation of the country’s President’s Budget Message
fiscal policy and budget priorities is
contained in a document called the
3. All of the above involves the physical transfer Remittance of taxes through
of cash except the Tax Remittance
Advice 
4. The initial testing costs incurred on an item of capitalized after deducting
property, plant and equipment are the disposal proceeds of
samples generated during
testing.
5. The GAM for NGAs aims to update all of the rules and regulations
following except regarding the filing and
payment of taxes by
government employees
6. Which of the following may qualify as An agricultural land
investment property? purchased for appreciation
purposes
7. The journal entry to record the collection of Dr) Cash-Treasury/Agency
unbilled tax revenue (e.g., Travel Tax) Deposit, Regular. Cr)Travel
through direct deposit in Authorized Agent Tax 
Banks is 
8. Entity A acquires equipment from a supplier, Non-Cash Availment Authority
on account. A lender settles the account of (NCAA) 
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
9. Entity A, a government entity, records Entity A is not compliant with
purchases of items of inventory under the the requirements of GAM for
“Purchases” account and freight-in under NGAs.
the “Freight-in” account. Which of the
following statements is correct?
10. According to the GAM for NGAs, revenue False
from exchange transactions are measured at
the amount of cash received.
11. It is a report that is prepared for the purpose bank reconciliation statement
of bringing the balances of cash per records
and per bank statement into agreement.
12. This refers to charges for the use of cash or Interest income
cash equivalents, or amounts due to the
entity.
13. Under this inventory system, purchases, sales, Perpetual inventory system
and other transactions affecting inventory
are recorded in the “inventory” and “cost of
sales” accounts, as appropriate. Moreover,
stock cards and stock ledgers are
maintained. 
14. Which of the following is not one of the Registries of Journals and
registries maintained by a government Ledgers
entity?
15. This account is debited when government Cash-Treasury/Agency

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entities remit collections to the National Deposit, Regular

Treasury.
16. If the unadjusted balance of cash per bank Outstanding checks
statement is greater than the adjusted
balance and there no other reconciling
items or errors, the difference would most
certainly be caused by a
17. It is a type of fund held by a government Special fund
entity that is designated for special purposes.
18. This approach to budgeting requires the Zero-based budgeting
justification of items in the budget
irrespective of whether they are new or
carried over from the previous year.
19. All of the following may cause the The check is dishonored.
cancellation of a check drawn by a
government entity except
20. Entity A is a government hospital. Entity A when the services are
would most likely recognize revenue from rendered and the patient is
services rendered to a patient billed. 
21. Which of the following transactions is not Constructive remittance of
recorded through a credit to the “Cash- taxes withheld to the BIR.
Modified Disbursement System (MDS),
Regular” account? 
22. The receipt of subsidy from the national gives rise to the recognition of
government or other government agencies revenue
23. These refer to transactions in which one Exchange transactions
entity receives assets or services, or has
liabilities extinguished, and directly gives
approximately equal value to another entity
in exchange.
24. Entity A, a government entity, has an unused Dr) Subsidy from National
NCA of ₱50,000 at the end of the current Government Cr) Cash-
year. The entry to record the reversion of Modified Disbursement
unused NCA is System (MDS), Regular 
25. Which of the following statements is incorrect The DBM accounts for the
regarding the GAM for NGAs? cash, public debt and related
transactions of the NG.
26. The GAM for NGAs is promulgated by the Commission on Audit (COA)
27. According to the PPSAS, a financial asset is an entity becomes a party to
recognized when the contractual provisions of
the instrument.
28. The basis of accounting required by the Accrual basis
GAM for NGAs is 
29. Entity A, a government entity, purchases as Inventory Held for
office supplies. Entity A would most likely Consumption
record the purchase
30. Who owns the goods in transit under FOB Buyer
shipping point?
31. Which of the following statements best The Registries primarily serve
describes the various Registries maintained as an internal control for
by government entities? controlling and monitoring
the conformance of actual
results with the approved
budget.
32. Which of the following statements is incorrect Unreleased checks are
regarding the accounting for unreleased physically cancelled.

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checks by a government entity?

33. A government entity recognizes revenue Receipt of a pledge.
from exchange or non-exchange
transactions. In which of the following
transactions does a government entity need
not recognize revenue?
34. It is the expenditure authority derived from Approved Budget
appropriation laws, government ordinances,
and other decisions related to the
anticipated revenue or receipts for the
budgetary period. 
35. After the budget call, budget hearings are DBM
made whereby agencies defend their
proposed programs and expenditures for the
upcoming year before the 
36. According to the GAM for NGAs, the receipt True
of concessionary loans by government
entities may give rise to revenue recognition.
37. The taxable event for income tax is the False
passage of the time period for which the tax
is levied
38. For government entities, inventories are Used in the production of
assets (choose the incorrect one) goods.
39. A government entity remitting collections to Cash-Treasury/Agency
the BTr will debit this account to record the Deposit, Regular
remittance.
40. For government entities, the capitalization ₱15,000 or more
threshold for PPE is
41. This consolidates all issued Requisition and Report of Supplies and
Issue Slips (RIS) for inventories and is used in Materials Issued (RSMI)
updating both the Stock Card and the Stock
Ledger Card
42. What is the legal basis of the COA in Article IX-D, Section 2 par. (2)
promulgating the GAM for NGAs? of the 1987 Constitution of the
Republic of the Philippines
43. It is a hedge of the exposure to changes in Fair value hedge
fair value of a recognized asset or liability or
an unrecognized firm commitment, or an
identified portion of such an asset, liability or
firm commitment, that is attributable to a
particular risk and could affect surplus or
deficit.
44. After the incurrence of obligations, the next Disbursement authority
step in the budget cycle is
45. Which of the following statements is incorrect PAS 41 and the GAM for
regarding the accounting for biological NGAs have the same
assets? accounting treatment for
consumable and bearer
plants.
46. Entity A exchanges an item of PPE with Entity at the carrying amount of the
B. Assuming the exchange lacks commercial asset given up, plus cash paid
substance, how should Entity A measure the or minus cash received
equipment received from the exchange?
47. The entry to record a disbursement from the None of these.
petty cash fund is
48. Which of the following statements regarding Officials and employees

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the disbursement of government funds is authorized to travel shall be

incorrect? granted cash advance to
cover traveling expenses. The
amount granted shall be
accounted for as “Due to
Officers and Employees.”
49. Which of the following is one of the No payment of any nature
Fundamental Principles for Revenue under shall be received by a
the GAM for NGAs? collecting officer without
immediately issuing an official
receipt in acknowledgement
thereof. The receipt may be in
the form of postage, internal
revenue or documentary
stamps and the like, officially
numbered receipts, subject to
proper custody,
accountability, and audit.
50. It is an authority issued by an agency’s Notice of Transfer of
Central Office to its regional and operating Allocation (NTA)
units to cover the latter’s cash requirements.
51. Which of the following reflects a Non-Cash Dr) Accounts Payable
Availment Authority (NCAA) mode of Cr)Subsidy from National
disbursement? Government
52. Which of the following is considered a Pig
biological asset?
53. Which of the following measurement bases is cost less accumulated
acceptable for the subsequent impairment losses
measurement of an investment property held
by a government entity?
54. Which of the following government agencies DOLE
will most likely be able to obtain a
disbursement authority in the form of Cash
Disbursement Ceiling (CDC)?
55. This accounting concept is necessary so that Comparability
users can use information in the financial
statements in noting differences and
similarities between those information
presented and information from other
sources that the user may have.
56. Entity A, a government entity, grants a ₱8,000
₱10,000 cash advance for the travelling
expenses of an employee. The employee
liquidates ₱8,000 of the cash advance and
remits the excess cash advance of ₱2,000.
After recording the grant of cash advance
and the liquidation thereof but before
adjustment for the collection of the excess
cash advance, how much is the recorded
expense in the books of accounts?
57. The constructive remittance of taxes withheld true
through the TRA gives rise to the recognition
of revenue.
58. Which of the following statements is correct A building being rented out to
regarding investment properties? the entity’s employees who
are paying rentals at market

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rates is not an investment

property.
59. The distinguishing characteristic that Generates separately
identifies an investment property from the identifiable cash flows from
other assets of an entity is? the other assets of the entity.
60. It is an authority issued by an agency’s Used in the production of
Central Office to its regional and operating goods.
units to cover the latter’s cash requirements.
61. Which of the following would result to an The repayment of a loan
increase or decrease in the revenue payable is forgiven.
reported by a government' 'entity in its
statement of financial performance?
62. Which of the following is not one of the Fiscal responsibility shall, to
Fundamental Principles for Disbursement of the greatest extent, be
Public Funds under the GAM for NGAs? assumed solely by the Head
of the government agency.
63. When cash flows are deferred, the fair value True
of the consideration receivable is its present
value.
64. Which of the following statements is correct Trust funds shall be available
regarding the Fundamental Principles for and may be spent only for
Disbursement of Public Funds under P.D. No. the specific purpose for which
1445? the trust was created or the
funds received.
65. Which of the following does not qualify as Money market placement
cash equivalent for a government entity? with an original term of 3
months.
66. Which of the following documents is Inventory Custodian Slip
prepared when issuing semi-expendable
property to end-users?
67. The Commission on Audit (COA) is promulgating accounting
responsible for and auditing rules and
regulations.
68. Which of the following is not charged with Non-stock, non-profit private
government accounting responsibility? hospital
69. According to the GAM for NGAs, cash cash advances to authorized
disbursements are made through personnel
70. Which of the following modes of NCAA
disbursements would result to the recognition
of a loan payable in books of the BTr?
71. Which of the following items are classified by Office supplies and similar
a government entity as Inventory Held for materials.
Consumption?
72. Which of the following may be capitalized as Professional fees
cost of property, plant and equipment?
73. Which of the following may not be included Treasury bills acquired 3
as part of cash in the note disclosures? months before maturity date
74. Entity A, a government entity, receives its No journal entry.
₱9M allotment. The journal entry to record
this event is
75. The issuer of a financial instrument shall any of these
classify the instrument, or its component
parts, on initial recognition as a
76. The taxable event for Value added tax (VAT) taxable activity.
is the a undertaking of
77. Entity A estimates a risk of loss on a Risk management

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recognized asset at 20%. However, Entity A

can only accept a risk of 5%. Entity A then
enters into a forward contract to offset the
excess risk of 15%. This process is best
described as
78. Biological assets and agricultural produce probable future event
are recognized when all of the following are
present except
79. Relief and other welfare goods held for Inventory Held for Distribution
distribution are most likely to be classified by
a government entity as
80. If the unadjusted balance of cash per bank Deposits in transit
statement is less than the adjusted balance
and there no other reconciling items or
errors, the difference is most likely caused by
Quizziz- Non-proft
Questions Answers
1. ABC Organization, a non-profit entity, acquired 30,000
shares of stocks to be held as investment for
₱200,000 using unrestricted net assets. During the
year, ABC received cash dividends of ₱10,000. At
year-end, the shares have a fair value of
₱220,000. What is the effect of the transactions
described above on the year-end statement of
activities of ABC? increase (decrease)
2. Private not-for-profit organizations should report a either direct method or
statement of cash flows using the Indirect method
3. The machine of ABC Organization, a not-for-profit This event has a zero net
entity, has malfunctioned. Mang Tony, a effect on ABC’s net assets
professional mechanic, repaired the machine for
free. The fair value of the services is estimated at
₱10,000. Which of the following statements is
correct?
4. According to SFAS 117, the financial statements Basic information on the
of a not-for-profit entity should focus on the organization as a whole.
5. On the statement of activities of a private Function
university, expenses are reported by (use SFAS
117 in answering this question)
6. Financial accounting (financial reporting) applies All of these
to which of the following?
7. According to US GAAP, the accounting provision of a statement of
requirement unique to Voluntary Health and functional expenses that
Welfare Organizations (VHWO) is the reports expenses by both
functional and natural
classifications.
8. A non-profit organization receives donation of expenses and revenues
services in-kind from an accountant who was
consulted regarding the NPO’s financial reporting
system. The NPO will most likely recognize those
services as
9. On the statement of operations of a health care Unrestricted revenues.
organization, expenses are deducted from (use
SFAS 117 in answering this question)

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1. OVERVIEW OF GOVERNMENT ACCOUNTING
It encompasses the processes of

analyzing, recording, classifying,
summarizing and communicating all
transactions involving the receipt and
disposition of government funds and Government accounting
property, and interpreting the results
thereof.
The GAM for NGAs is promulgated by the Commission on Audit (COA)
The Commission on Audit (COA) promulgating accounting and
is responsible for auditing rules and regulations.
Which of the following is not charged
with government accounting Non-stock, non-profit private hospital
responsibility?
Which of the following qualitative
characteristics may be sacrificed
when reporting information on a Reliability
timely basis?
According to the GAM for NGAs,
information has this qualitative
characteristic if it can be used to assist in
evaluating past, present or future events
Relevance
or in confirming or correcting past
evaluations.
This refers to the comparability between
the financial statements of different Inter-comparability
entities?
When the substance of a transaction or
event differs from its legal form, the entity
should report the transaction’s or event’s Substance
The implication that users must be
informed of the entity’s policies, changes
to those policies, and the effects of those Comparability
changes refers to
In the financial reporting system of the
national government, to which of the
following shall an entity reconcile its cash Bureau of Treasury
records?

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2. BUDGET PROCESS & GOVERNMENT ACCOUNTING PROCESS
Which of the following approaches to Zero-based budgeting

budget preparation provides the best
internal control?
This approach to budgeting requires the Zero-based budgeting
justification of items in the budget
irrespective of whether they are new or
carried over from the previous year.
Which of the following is correct The current year’s budget is formulated
regarding zero-based budgeting? with regard to the previous year’s budget
Which of the following would most likely Budget call to DBM

come first in the budget process?
Which of the following would most likely Performance review
come last in the budget process?
Entity A, a government entity, receives Notice of cash allocation
authorization to disburse funds not to
exceed
₱1B in a specified period. This event can
be
described as
Entity A, a government entity, receives Allotment
notice that out of its ₱10B approved
budget for the year, Entity A can incur
obligations up to ₱4B in the first quarter.
This event can be described as
Entity A, a government entity, receives Appropriation
notice that for the current year, the
maximum amount it can spend on
maintenance and other operating
expenses is ₱10B. This event can be
described as
After receiving its obligational authority Obligation
amounting to ₱4B, Entity A enters into
binding agreements for the eventual
payments of a total sum of ₱3B. The “₱3B”
event can be described as
It is a part, segment, unit or function of a Responsibility center
government agency, headed by a
manager, who is accountable for a
specified set of activities.

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3. The Government Accounting Process
The NCA is recorded in the Registry of Allotments & Notice of Cash

Allocation (RANCA) and Books of
Accounts (Journal and Ledger)
This event is recorded in the books Closing entries

of accounts
Which of the following as (are) affected ORS and RAOD

when a government entity incurs
obligations?
The 8-digit Revised Chart of Accounts 4
(RCS) Code for the account “Subsidy
from National Government” starts with
number
According to the GAM for NGAs, Maintained by the accounting unit of
the Registries are (choose the a government entity
incorrect statement)
Which of the following is not a Allotment

form of disbursement authority?
The receipt of allotment is recorded in the RAPAL and RAOD
Which of the following is (are) affected ORS, RAOD & Journal and Ledger
when a government entity makes
disbursements to settle recorded
obligations?
The journal entry to record the billing of Dr. Accounts Receivable
revenue (e.g., Communication Network Cr. Communication Network Fees
fee) is
Which of the following accounts is most Cash - Collecting Officers
likely credited when a government entity
remits its collections to the National
Treasury?
Which of the following records is Registry of Appropriation and Allotments
technically not considered an
accounting book?

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4. GOV REVENUES AND OTHER RECEIPTS

Government entities and business Remittance of taxes withheld to
entities use the same accounting the BIR
treatment for all of the following
except
Which of the following does not give Inter-agency Fund Transfer
rise to revenue from assistance or
subsidy
At the end of the period, the Accumulated Surplus or Deficit
“Cash-Treasury/Agency Deposit, Account
Regular” account is closed to the
According to P.D 1445, all revenues of General Fund

an entity shall be remitted to the
National Treasury and included in the
According to P.D 1445, Amounts received in trust and from

business type activities of the
government may be separately
recorded.
The national government received a Credit to the “Other Deferred

foreign grant conditioned on the Credits” account
construction of a public
infrastructure. Entity A was chosen as
the implementing agency. When the
national government received the
grant, the entry in the BTRs books
included a
According to the GAM for NGAs Recorded as a liability
revenue includes only those that are
received or receivable by the entity
in its own account. Accordingly,
receipts on behalf of another entity
are
All of the following give rise to Sale of goods
the recognition of revenue
from
non-exchange transaction except
Remittances of collections to the Cash-Treasury/Agency
National Treasury are recorded as a Deposit, Regular
debit to which of the following
accounts
A government entity recognizes Receipt of free training and
revenue from exchange or non- seminars regarding process
exchange transactions. Which of the technology on farming from an
following may not give rise to international organization
revenue by a government entity?

lOMoARcPSD|9798366
Questions Answers
1. An entity issues term bonds at a discount. If the The carrying amount of the
bonds are subsequently measured at bonds decreases each period
amortized cost, which of the following
statements is not correct?
2. Provisions are never discounted to their present false
value.
3. Transaction costs on issuing bonds are deducted from the initial
carrying amount of the bonds
4. The obligation under an onerous contract is true
recognized as a provision.
5. Legal obligations arise only from law. false
6. Which of the following distinguishes a provision A provision necessarily needs to
from other types of liabilities? be estimated because it is a
liability of uncertain timing or
amount.
7. A financial liability cannot arise from true
constructive obligation.
8. Which of the following is not a financial Due to BIR
liability? Initial and subsequent
mesurement
9. A provision is measured at the entity's best estimate of the
settlement amount
10. A provision is a liability of uncertain timing or true
amount.
11. If one or more of the liability recognition true
criteria are not met, the item is a contingent
liability.
12. Financial liabilities, except financial liabilities false
classified to be subsequently measured at fair
value through surplus or deficit, are initially
measured at fair value plus transaction costs.
13. Which of the following statements is correct The expense related to the
regarding reimbursements of provisions? provision may be presented in
the statement of financial
performance net of the
reimbursement.
14. Which of the following is correct regarding Contingent assets are only
contingent assets? disclosed is probable.
15. A present obligation whose cost can be disclosed only
measured reliably but viih improbable outlow
of resources embodying economic benefits or
service potential is most likely to be

lOMoARcPSD|9798366
PAS 41 and the GAM for NGAs have
Which of the following statement is incorrect the same accounting treatment for
regarding the accounting for biological assets? consumable and bearer plants.
Which of the following is most likely an acceptable
measurement for agricultural produce on initial
measurement? Fair value less costs to sell
Which of the following is considered a bearer
plant? Oil Palm
Which of the following is considered an
agricultural produced? Felled trees
Which of the ff is considered an inventory rather
than agricultural produce at the point of harvest? Tea
Which of the ff is considered an agricultural
activity under PAS41? Floriculture
Which of the ff is most likely acceptable
measurement for agricultural produce in
Subsequent measurement? Lower of cost and NRV
Which of the ff is considered a biological asset? Pig
Biological assets and agricultural produce
are recognized when all of the ff are present
except? Probable future event

lOMoARcPSD|9798366
Questions Answers
The Weyman Hospital, a private, not-for- 880000
profit institution, reported the following
information: Gross patient service
revenue $1,000,000 Allowance for
discounts to hospital employees
20,000 Bad debt expense 40,000 Contractual adjustments 100,000 What amount should the hospital
report as net patient service revenue?
Which one of the following is not a Statement of Fund Balance

required financial statement for a private
voluntary health and welfare
organization?
Cash flows from a public university Cash flows from operations.

bookstore would appear on the
statement of cash flows as
Which of the following types of health Yes yes yes

care organizations recognize
depreciation expense? Investor-Owned;
Not-for-Profit Organizations;
Governmental Health Care
Which of the following transactions of a I Only

private voluntary health and welfare
organization would increase temporarily
restricted net assets in the statement of
activities for the current year? I. Received
a contribution of $20,000 from a donor in
the current year who stipulated that the
money not be spent until the following
year. II. Spent $25,000 for fund raising
during the current year from a donation
from the previous year.
In November 20x1 Gilmore Heating and An increase in unrestricted revenues and

Air Conditioning Service repaired the air an increase in expenses on the statement
conditioning system for GenCare, a of activities.
organization and mailed an invoice for
$3,000. On December 25, a note was
received by GenCare indicating that
Gilmore was canceling the invoice and
that repairs were being donated. For the
year ended, December 31, 20x1,
GenCare should report these contributed
services as:
CIBA, a non-profit performing arts Temporarily restricted and Permanently

organization, received a contribution of a restricted respectively
term endowment and a regular
endowment. These endowments should
be reported on the statement of activities

lOMoARcPSD|9798366
in Term Endowments and Regular

Endowments as :
On December 30, 19X4, Leigh Museum, a 5000000

not-for-profit organization, received a
$7,000,000 donation of Day Co. shares
with donor stipulated requirements as
follows: Shares valued at $5,000,000
are to be sold with the proceeds used to
erect a public viewing building. Shares valued at $2,000,000 are to be
retained with the dividends used to
support current operations. Leigh
adopted of FASB Statement No. 117,
Financial Statements of Not-for-Profit
Organizations. As a consequence of the
receipt of the Day shares, how much
should Leigh report as temporarily
restricted net assets on its 19X4 statement
of financial position?
Which of the following statements is The GAM for NGAs requires the Collecting
incorrect? Officer to issue an official receipt to
acknowledge the receipt of the Notice
of Cash Allocation.
Which of the following is a non-exchange Collection of taxes

transaction?
Which of the following is not an essential It is subsequently measured at fair value.

characteristic of a financial instrument?
A hospital has the following account

balances: Revenue from newsstand
$ 50,000 Amounts charged to 690000
patients 800,000 Interest income
30,000 Salary expense – nurses
100,000 Bad debts 10,000 Undesignated gifts 80,000 What is the hospital’s net patient
service revenue? 
Ellen College, a private not-for-profit Temporarily restricted revenue.

institution, received a $100,000 grant for
faculty research in 20x1. The grant money
was not spent until 20x2. For 20x1, Ellen
College should report the contribution as:
Which of the following statements is Appropriation is also called obligational

incorrect? authority.
An NPO hospital has the following 430000

account balances: Amount
charged to patients $500,000 Revenue from newsstand 15,000 Undesignated gifts 40,000 Interest income 12,000 Salaries
expense – nurses 120,000 Bad debts
8,000 What is the hospital’s net
patient service revenue? 
Which of the following information is not Effects of current period errors.

reported in the statement of changes in
net assets/equity?
Entity A is a government hospital. Entity A upon billing, when goods are transferred
operates a pharmacy within the hospital. to the buyer.
Entity A would most likely recognize
revenue from sales of medicines in the
pharmacy
It is an authorization issued by the DBM to Allotment

NGAs to incur obligations. It is also
referred to as Obligational Authority.
Which of the following does not affect closing of the “Cash-Treasury/Agency

the amount of surplus or deficit that is Deposit, Regular” account
reported in the statement of financial
performance?
The 8-digit Revised Chart of Accounts None of these

(RCA) Code for revenues starts with
number
Entity A, a government entity, has an DR) Subsidy from National Government
unused NCA of ₱50,000 at the end of the CR) Cash-Modified Disbursement System
current year. The entry to record the (MDS), Regular
reversion of unused NCA is
Which of the following would result to an The repayment of a loan payable is

increase or decrease in the revenue forgiven.
reported by a government entity in its
statement of financial performance?
A government entity derecognizes which Fully depreciated PPE

of the following?
Home Care, Inc., a nongovernmental 250000

organization, received two contributions
in 2003. One contribution of $250,000 was
restricted for use as general support in
2004. The other contribution of $200,000
carried no donor restrictions. What
amount should Home Care report as
temporarily restricted contributions in its
2003 statement of activities.
A statement of functional expenses is Fraternal Organization

required for which of the following private
not-for-profit institutions? (use SFAS 117 in

lOMoARcPSD|9798366
answering this question)
This type of budget is prepared in such a Balanced budget

way that estimated revenues exceed
estimated expenditures.
The Johnson Hospital, a private not-for- 80000

profit hospital, received the following
revenues in the current year: Proceeds from sales of the Hospital’s
flower shop $60,000 Dividends and
interest revenue not restricted $20,000 Cash contributions for the renovation of
the children’s ward in the Hospital
$200,000 Which of these
amounts should be reported as other
revenues and gains (other revenue) on
the Statement of Operations? 
On December 31, 20X1, the Board of No effect for both

Trustees of a private, not-for-profit college
designated $5,000,000 of unrestricted net
assets for the construction of an addition
to the music building. What effect does
this designation have on the college’s
unrestricted and temporarily restricted
net assets shown on the statement of
financial position on December 31, 20X1?
For Unrestricted Net Assets and
Temporarily restricted Net Assets
During the period, Entity A, a government None of these

entity, withheld ₱100,000 taxes from its
payments to employees and suppliers.
On September 14 of the current year,
Entity A remitted the taxes withheld to the
BIR through Tax Remittance Advice. The
entry to record the remittance includes
If plotted on a graph, the periodic downward line sloping to the right

interest expenses recognized on bonds
issued at a premium will show a: (X axis –
time; Y axis - ₱)
The operator in a service concession private entity

arrangement is a
Gerlack College, a private, not-for-profit Refundable advance.

institution, received a donation of
$2,000,000 as a challenge grant. If the
college raises an additional $2,000,000
within the next two years, it may keep the
donation. If it fails, the $2,000,000 must be
returned to the donor. How would the
college record the receipt of the grant?

lOMoARcPSD|9798366
Arrange the following steps in the budget IV, I, V, II and III

process according to the sequence that
they appear in the budget cycle.
Allotment Disbursement authority Disbursement Appropriation Incurrence of obligation
A private not-for-profit hospital provided Only in the notes to the financial

$150,000 in charity care for the current statements.
year. The hospital should report this
charity care as
The following contributions were received A retired college professor donated

by a private voluntary health and welfare reading services to senior citizens. The
organization. Which of these would not organization would not have paid for
be recorded as an increase in these services if they had not been
unrestricted revenue? donated.
According to the GAM for NGAs, these Heritage assets

assets are those which have historical,
cultural and environmental significance,
and are intended to be preserved for
future generations.
Entity A, a government entity, receives Appropriation

notice that for the current year, the
maximum amount it can spend on
maintenance and other operating
expenses is ₱10B. This event can be
described as
When determining depreciation, an

entity considers all of the following Whether the asset is classified as with
except finite or indefinite useful life.
Which of the following statements is Unreleased checks are perforated.

incorrect regarding the accounting for
unreleased checks by a government
entity?
The main purpose of the statement of to enhance the transparency of financial

comparison of budget and actual reporting of the government.
amounts is
Electra, a not-for-profit performing arts Fair value and Equity method

organization, held some donor restricted respectively
endowment funds which are invested in
stocks that are listed on the NY Stock
Exchange, so the fair values are readily
determinable. Most of the investments
represent amounts between 2% and 5%
of the outstanding common stock of the
investee corporations. However, Electra
does own stock in one company that
gives it the ability to exercise significant
influence over the operating and

lOMoARcPSD|9798366
financing policies of the investee

company. How should these two types of
investments be reported on Electra’s
Statement of Financial Position at year
end? Equity Securities 2% - 5% ownership
and for Equity Securities. significant
influence
A journal entry with a credit to the “Cash- Check Disbursements Journal

Modified Disbursement System (MDS),
Regular” account will most likely be
recorded in the
Lessee enters into a lease contract with The lease transfers ownership of the
Lessor. Which of the following would most leased asset to the Lessee if the Lessee
likely indicate a substantial transfer of risks pays the Lessor the leased asset’s fair
and rewards incidental to ownership of value, to be determined on payment
an asset? date.
Entity A exchanges an item of PPE with Add the cash paid to the initial
Entity B. How should Entity A account for measurement of the asset received.
any cash paid or received from the
exchange?
Vista, a voluntary health and welfare Unrestricted revenue.

organization, received a donation of
$100,000 to be spent in accordance with
the wishes of the institution’s Board of
Trustees. This donation should be reported
on the statement of activities as:
On the statement of activities for a Decrease in temporarily restricted and

private not-for-profit institution, the increase in unrestricted net assets.
account, net assets released from
restrictions, would be shown under
revenues, gains, and other support as a
(use SFAS 117 in answering this question)
Arrange the following steps in the budget V, II, IV, I and III
process according to the sequence that
they appear in the budget cycle. Allotment Bicameral
deliberations Budget accountability
reports President’s enactment of the
GAA Budget hearings with the DBM
Guil College, a private not-for-profit 500000

college, received the following cash
inflows: Guil College, a private not-for-
profit college, received the following
cash inflows: $400,000 from students
for tuition. $200,000 from a donor
who stipulated that the money be
invested indefinitely and the earnings
used for student scholarships. $100,000 from a donor who stipulated

lOMoARcPSD|9798366
that the money be spent according to

the wishes of the Board of Trustees. Which amounts of these cash flows
should be shown on the cash flow
statement as cash from operating
activities?
Entity A spends ₱20,000 on the repair of As a minor repair

one of its equipment. It is not clear
whether the repair is a major repair or a
minor repair. In accordance with the
GAM for NGAs, how should Entity A
account for the repair cost?
Which of the following is not one of the Sales Journal

special journals prescribed by the GAM
for NGAs?

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Quizziz Midterm Exam

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entities remit collections to the National Deposit, Regular

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checks by a government entity?

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the disbursement of government funds is authorized to travel shall be

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rates is not an investment

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recognized asset at 20%. However, Entity A

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1. OVERVIEW OF GOVERNMENT ACCOUNTING

It encompasses the processes of

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2. BUDGET PROCESS & GOVERNMENT ACCOUNTING PROCESS

Which of the following approaches to Zero-based budgeting

Which of the following would most likely Budget call to DBM

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3. The Government Accounting Process

The NCA is recorded in the Registry of Allotments & Notice of Cash

This event is recorded in the books Closing entries

Which of the following as (are) affected ORS and RAOD

Which of the following is not a Allotment

The receipt of allotment is recorded in the RAPAL and RAOD

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4. GOV REVENUES AND OTHER RECEIPTS

According to P.D 1445, all revenues of General Fund

According to P.D 1445, Amounts received in trust and from

The national government received a Credit to the “Other Deferred

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PAS 41 and the GAM for NGAs have

Which of the following is most likely an acceptable

measurement for agricultural produce on initial

measurement? Fair value less costs to sell

Which of the following is considered a bearer

plant? Oil Palm

Which of the following is considered an

agricultural produced? Felled trees

Which of the ff is considered an inventory rather

than agricultural produce at the point of harvest? Tea

Which of the ff is considered an agricultural

activity under PAS41? Floriculture

Which of the ff is most likely acceptable

measurement for agricultural produce in

Subsequent measurement? Lower of cost and NRV

Which of the ff is considered a biological asset? Pig

Biological assets and agricultural produce

are recognized when all of the ff are present

except? Probable future event

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Which one of the following is not a Statement of Fund Balance

Cash flows from a public university Cash flows from operations.