BCLTE Mock Exam 1

Direction: Read each statement comprehensively and choose the best answer.
1. It is the tax imposed on the use of lands, buildings and machineries.
a. Business Tax
b. Value Added Tax
c. Real Property Tax
d. Excise Tax
2. It refers to the purpose for which the property is principally utilized.
a. Actual use
b. Fixed use
c. Targeted used
d. None of the above
3. It refers to the price at which the seller is willing to sell and the buyer is
willing to purchase.
a. Assessed value
b. Fair market value
c. Assessed level
d. Property value
4. All of the following statements are correct except
a. RPT shall be assessed on the basis of uniform classification within
each LGU.
b. RPT assessment and appraisal shall be equitable.
c. RPT assessment level varies depending on its land classification
d. RPT of lands of the same measurement are of equal regardless of
its location.
5. Which of the following are exempted from paying RPT?
a. Charitable institutions and educational institutions
b. Machineries used in local distribution of water and electricity
c. Registered cooperatives
d. All of the above
6. The basic RPT is equal to

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 a. Assessed level x Tax rate
b. RPT +SEF
c. Assessed value x Tax rate
d. Assessed level x assessed value x tax rate
7. The assessment level for residential and agricultural lands respectively are
a. 40%, 20%
b. 20%, 40%
c. 50%, 40%
d. 40%, 20%

8. The special levy on SEF and idle lands respectively are

a. 2%, 5%
b. 5%, 1%
c. 5%, 2%
d. 1%, 5%
9. The special levy on lands benefited by public works is _______and payable
in_______
a. Not exceeding 60% of the actual project cost; 5 to 10 years
b. Not exceeding 60% of the actual project cost; 5 years
c. Not exceeding 50% of the actual project cost; 5 to 10 years
d. Not exceeding 50% of the actual project cost; 5 years
10. Idle lands include the following except
a. ½ unutilized or unimproved
b. Unutilized residential lots
c. Non-agricultural lands of more than 1000 square meters
d. Agricultural lands of more than 2 hectares
11. Which of the following statements is true?
a. Late payment of RPT charges 2 % monthly interest but not exceeding
24 months
b. Accrual of RPT is on January 31
c. RPT advanced payment deducts 20% discount while 10% for
prompt payment

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 d. One-time payment of RPT can be made on or before April 30
12. The 2% basic RPT Rate is applied to
a. Provinces and cities
b. Cities and municipalities
c. Provinces and Municipalities
d. Provinces, Cities and Municipalities
13. Which of the following is true about the taxing powers of LGUs?
a. It is limited and can be exercised within territorial jurisdiction.
b. It is inherent and granted from constitution
c. It may be exercised by the Sanggunian or the LCE
d. All of the above
14. The following are exempted from paying fees and charges except
a. Officers and enlisted men of AFP
b. Disabled citizens and 65 years older
c. Peddlers and retailers
d. PNP members in mission
15. What is the tax rate on Transfer of Real Property Ownership?
a. Provinces 50% of 1% Cities 60% of 1%
b. Provinces 50% of 1% Cities 50% of 1%
c. Provinces 75% of 1% Cities 50% of 1%
d. Provinces 50% of 1% Cities 75% of 1%
16. What is tax rate on printing and publication and franchise for newly
started businesses?
a. Provinces 1/20 of 1% of AGR
Cities 3/20 of 1% of AGR
b. Provinces 1/20 of 1% of capital investment
Cities 3/20 of 1% of capital investment
c. Provinces 50% of 1% of capital investment
Cities 75% of 1% of capital investment
d. Provinces 50% of 1% of AGR Cities 75% of 1% of AGR
17. The payment of professional tax shall be on or before
a. January 1 or before the practice of profession

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 b. March 30 or before the practice of profession
c. January 31 or before the practice of profession
d. June 30 or before the practice of profession
18. The following amusements are exempted from paying amusement except
a. Lease or operation of theaters
b. Painting and arts exhibition
c. Literary and oratorical presentations
d. PBA Games
19. Which is true about amusement tax?
a. Not more than 10% Tax rate
b. Based on gross receipts from admission fees
c. Shared equally by Provinces and Municipalities
d. All of the above
20. Which tax form is applicable to manufacturers, distributors and exporters?
a. Fixed tax
b. Graduated tax
c. Percentage tax
d. All of the above
21. Which tax form is applicable to lending institutions and finance
companies?
a. Fixed
b. Graduated
c. Percentage
d. None of the above
22. For businesses under NIRC, the tax rate for cities and municipalities
respectively are
a. Cities 3% of AGR Municipalities 2% 9f AGR
b. Cities 2% of AGR Municipalities 3% 9f AGR
c. Cities 2% of AGR Municipalities 2% 9f AGR
d. Cities 3% of AGR Municipalities 3% 9f AGR
23. The maximum amount of gross receipt that barangay in a city can levy
taxes

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 a. 50 000
b. 30 000
c. 40 000
d. 60 000
24. Business Tax must be paid annually or quarterly within
a. 20 days of January
b. 20 days of the quarter
c. A or B
d. None of the above
25. A well-planned budget can do the following except
a. Spend below our means
b. Invest in special priorities
c. Delivery measurable results
d. Empower treasury office
26. The Local budget process includes
a. Preparation Accountability Execution Review Authorization
b. Preparation Authorization Review Execution Accountability
c. Preparation Review Authorization Execution Accountability
d. Preparation Authorization Review Accountability Execution
27. The Appropriation Ordinance of provinces shall be reviewed by DBM
Regional Office while the Appropriation Ordinance of Cities, municipalities,
and Barangays must be reviewed by
a. Local Treasurer and LCE
b. LFC and LCE
c. Sanggunian
d. Local Accountant and LF
28. Who must be present in the conduct of Budget Forum
a. LFC and LCE
b. Department Heads and Local Accountant
c. LCE, LFC and Local Treasurer
d. LCE, LFC and Department Heads

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29. It is anchored on the principle of NO MONEY SHALL BE PAID OUT OF THE
TREASURY EXCEPT IN PURSUANCE OF APPROPRIATION ORDINANCE AND
LAW.
a. Execution
b. Authorization
c. Accountability
d. Review

30. Who shall justify the budget proposal?

a. LCE
b. LFC
c. Department Heads
d. Local Treasurer
31. It determines whether the Appropriation Ordinance has complied with the
budgetary requirements and general limitations stated in the LGC.
a. Budget Preparation
b. Budget Execution
c. Budget Accountability
d. Budget Review
32. It refers to the disbursement of funds and delivery of goods
a. Budget Execution
b. Budget Preparation
c. Budget Authorization
d. Budget Accountability
33. It is the evaluation of financial and Physical performance of PPAs
a. Budget Execution
b. Budget Preparation
c. Budget Accountability
d. Budget Review
34. Who is responsible in adjusting the cash program and Financial and
Physical performance target for shortages/overages?
a. Local Treasurer
b. Local Finance Committee

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 c. Local Budget Officer
d. Department Heads
35. The following are under the Budget Accountability except
a. Monitoring output/result
b. Monitoring receipts and expenditures
c. Submission of performance evaluation
d. Implementation PPAs
36. These are ventures wholly or partially owned by LGUs that aims to provide
basic necessities which cannot be provided by private sector alone.
a. Local Economic Enterprises
b. Other Economic Enterprises
c. Public utilities
d. Cooperatives
37. The following are true about LEEs except
a. It includes PUS and OOEs
b. It must be able to pass the 4- Hurdle Criteria
c. It aims to improve the production and delivery of goods
d. It aims to solely generate income for the LGUs
38. It helps in determining whether the proposed LEE is able to pass the 4-
hurdle criteria
a. Business Plan
b. Feasibility Study
c. Financial Statements
d. Credit Facility
39. It is the heart and soul of LEEs
a. Business Plan
b. Feasibility Study
c. Financial Statements
d. Credit facility
40. Which of the following is not true about LEE staffing?
a. Detail personnel in permanent position on the first year of
operations

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 b. Personnel must be all full time before the end of the 5- year
operations
c. The staff shall develop a mandatory 5- year business plan
d. Personnel shall be exempted from paying user fees and charges
41. It includes the profile of the target customers and the assessment of the
competitors
a. Management Analysis
b. Organizational Analysis
c. Marketing Analysis
d. Technical Analysis
42. It ensures the project scope, design and specifications have no adverse
environmental impact
a. Management Analysis
b. Organizational Analysis
c. Marketing Analysis
d. Technical Analysis
43. It is the reference used in conducting the feasibility Study of the proposed
LEEs.
a. NEDA’s Evaluation and Development Manual
b. BLGF Manuals
c. Local Government Code
d. BOT Manual
44. What is the 4th step in proposing LEEs?
a. Select financing source
b. Prepare Business Plan
c. Conduct Feasibility Study
d. Present the Feasibility Study
45. Which is excluded from the LGU transfer/advance to LEEs?
a. MOOE
b. PS
c. MOOE and PS
d. None of the above

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46. It begins with the setting of objectives and predetermination of actions to
be accomplished.
a. Organizing
b. Leading
c. Controlling
d. Planning
47. The process of measuring actual results from the desired output based on
standards and goals.
a. Controlling
b. Planning
c. Leading
d. Organizing
48. It refers to working systematically and logically to resolve problems in the
organization.
a. Human Resource Management
b. Positive Thinking
c. Analytical Thinking
d. Coaching and Mentoring
49. It refers to allocating and arranging human and non-human resources
a. Organizing
b. Planning
c. Leading
d. Coordinating
50. A process of influencing and directing people to engage in the work
efficiently.
a. Coordinating
b. Planning
c. Organizing
d. Leading
51. It involves creative problem solving, motivating employees and
accomplishing objectives.
a. Directive Management

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 b. Effective Management
c. Productive Management
d. Crisis Management
52. The following are under the Organizing function of Management except
a. Grouping
b. Assigning
c. Forecasting
d. Integrating
53. The following are activities done during Planning except
a. Budgeting
b. Forecasting
c. Scheduling
d. None of the above
54. It is a type of leadership behavior engage in two-way communication.
a. Tasked Behavior
b. Partnership Behavior
c. Democratic Behavior
d. Relationship Behavior
55. The 3Ps of leadership are
a. Purpose place plan
b. Purpose position plan
c. Purpose personality plan
d. Purpose person people
56. A manager focuses on systems and structures, while leader focuses on
a. Innovations
b. People
c. Challenges
d. Status quo
57. Which is true about analytical thinking?
a. Identify information needed to get out of the situation
b. Breaks simple task to solve the problem
c. Outright decision-making

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 d. Weighs the pros and cons of the given alternatives
58. Leadership is a pattern of
a. Behavior to mobilize others
b. Good personalities
c. Implementing rules
d. managing people
59. It is a way of being, managing and treating people
a. Teaching
b. Coaching
c. Counseling
d. Mentoring
60. What are the key principles of Coaching?
a. Awareness and credibility
b. Responsibility and creativity
c. Credibility and responsibility
d. Awareness and responsibility

61. What is the essence of coaching?

a. Awareness, responsibility and independent thinking
b. Awareness, responsibility and thinking
c. Awareness, responsibility and dependent thinking
d. Awareness, responsibility and higher thinking
62. In Coachability, people who get excited about finding new ways and
figuring how to learn are
a. Open about themselves
b. Appreciate New Perspectives
c. Awareness about oneself
d. Committed to Change
63. People who accept their flaws and are willing to go out of their comfort
zones
a. Appreciate New Perspectives
b. Open about themselves

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 c. Committed to Change
d. Aware of themselves
64. Which is true about Coaching?
a. It is best even during insurgencies.
b. It is for high awareness and maximum learning
c. It is the fastest way to solve problems
d. It is the answer to every person or situation.
65. It refers to the core of coaching
a. Thinking Environment
b. Integrity and excellence
c. The good coach
d. The listening coachee
66. It is regarded as the heart of coaching
a. Explanations
b. Solutions
c. Questions
d. Options
67. Welcoming different opinions and allowing exchange of ideas
a. Diversity
b. Appreciation
c. Encouragement
d. Equality
68. It is the CSC adopted process of Coaching
a. GOW
b. SMART
c. GROW
d. SOP
69. Laizzes Faire is an example of
a. Autocratic leadership
b. Democratic leadership
c. Delegative leadership
d. Transformational leadership

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70. The following characterized new leadership roles except
a. Visionary
b. Change agent
c. Empowered
d. directive

71. The following are the objectives of LGFPMS/LGU FSS except:

a. To support LGU credit assessment and policy formulation.

b. To authorize the merging and diverging of LGUs.

c. To provide relevant advisory to LGUs.

d. To evaluate each LGU performance.

72. These indicators define the flexibility of LGUs in allocating resources

a. Revenue Indicators

b. Expenditure Indicators

c. Debt Indicators

d. Financial Management Indicators

73. Which of the following exhibits performance typology type 3?

a. Poor revenue poor expenditure

b. Poor revenue good expenditure

c. Good revenue good expenditure

d. Good revenue poor expenditure

74. It is the major consideration in setting benchmarks for each indicators

a. Population

b. Inflation

c. Income

d. Location

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75. Debt Service Ratio must be less than or equal to ___ % of Annual Regular
Income
a. 55%
b. 30 %

c. 20%

d. 45%

76. How many benchmarks must an LGU pass to attain good revenue and
expenditure?
a. 7
b. 9

c.11
d. 13
77. It describes the LGU efficiency in managing monetary resources
a. Revenue Indicators

b. Expenditure Indicators

c. Debt Indicators

d. Financial Management Indicators

e. 78. Which does not belong to the group?

a. Per capita Locally sourced revenue

b. Debt Service Ratio

c. Capital Investment

d. Gross Operating Surplus

79. It provides the LGU fiscal and financial performance evaluation

framework
a. LGFSS

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b. eSRE

c. QRRPA

d. SMV

80. Uncommitted cash balance to total expenditure ratio belongs to

a. Revenue

b. Expenditure
c. Debt

d. Financial Management

81. The initial LGU-level forecasting by BLGF is not later than

a. 5th of May

b. 15th of June

c. 15th of May

d. 30th of June

82. Which does not belong to the group?

a. Locally Sourced Revenue

b. Annual Regular Income

c. Revenue Growth

d. Personal Services

83. These indicators reflect the capacity of LGU to attract long-term financing
investment
a. Revenue
b. Expenditure

c. Debt

d. Financial Management

84. The LGU final budget must be ready not later than
a. June 15

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b. June 30

c. July 15

d. July 30

85. Personal Services Expenditure Ratio of 4th and lower income class LGUs
must be less than or equal to
a. 45%

b. 55%

d. 20 %

e. 50%
86. In revenue growth, the average annual % increase of LGU revenue must be
greater than or equal to
a. Annual population

b. Total Annual population and inflation

c. Annual inflation rate

d. Total Annual inflation rate and annual population growth rate

87. In RPTAR, the total current collectibles and delinquencies must be ____
respectively.
a. 80%, 30%
b. 85%, 35%

c. 85%, 30%

d. 80%, 35%

88. This indicator must be less than or equal to 1 to prove that an LGU has
sufficient resources to back up its obligations.
a. Debt to Net Asset Ratio

b. Debt Service Ratio

c. Capital Investment

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d. Net Operating Deficit

89. How many specific indicators are under the expenditure

category?
a. 5
b. 6

c.7
d. 8
90. The Annual Budget Call is set on
a. 1st week of July
b.2nd week of July
c. 3rd week of June

d. 2nd week of January

91. Borrowing Capacity of LGUs is equal to

a. DSC × 20% of ARI

b. DSC x Annuity factor

c. Current IRA + 3 years ARI

d. NDSC × Annuity factor

92. The net NDSC is equal to

a. DSC- all Collectibles during the year

b. DSC × Annuity factor

c. ARI × 20%

d. DSC- all Amortizations payable during the year

93. Which of the following is correct?

a. Type 2 LGU Performance Typology exhibits good revenue and good
expenditure.
b. Annual Regular Income is the % of non-recurring revenue.

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c. At least 1/3 of the benchmarks must be attained for good rating.

d. The average annual % in inflation rate and population growth must be > to
annual % increase in LGU.
94. The following are the main LGFPMS categories except
a. revenue

b. services

c. expenditure

d. debt

95. The LGU may consider partnering with private sectors if

a. LEEs cannot satisfy LGU’ economic goals

b. LEEs cannot operate with its own budget

c. LEEs can operate with appropriate staffing

d. LEEs cannot fill the gaps in products and services by private sectors.

96. What can be the sources of financing LEEs?

a. Foreign and Local grant

b. Cost sharing and Cost recovery

c. Local Revenue and income from existing LEEs

d. All of the above

97. The documentary requirements for Debt Ceiling Certification for LGUs
affected natural disasters are the following except
a. Letter of Request from LCE

b. Certification of existing loan

c. COA Annual Audit

d. None of the above

98. The rate of premium of the Fidelity Bond is equal to

a. 15% of the amount of bond

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 b. 1.5 of the amount of bond

c. 1.5% of the of bond but not less than 250

d. 1.5% of amount of bond but not less than 150

99. Premium bond for property accountability is

a. 15% of their total value x 1.5

b. 30% of their total value x 1.5

c. 10% of their total value x 1.5

d. 1.5% of their total value x 1.5

100.Premium bond of forms is

a. 15% of the total value x 1.5

b. 30% of the total value x 1.5

c. 10% of the total value x 1.5

d. 1.5% of the total value x 1.5

BCLTE Mock Exam 2

Directions: Read and analyze each statement and mark red the letter that
corresponds to your choice.
1. Which of the following statements best captures the nature of leadership
as it should be for the organization to ensure success?
A. Leaders focus on budgeting, aligning people with a shared vision and
solving problems.
B. Leaders focus on setting direction, align people with a shared vision
and motivating people.
C. Leaders focus on motivating people, planning and organizing and
staffing.
D. Leaders focus on implementing rules and regulations of the Agency.
2. When a conflict arises between two employees, what first step might a
leader take?

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 A. Step in and quickly help employees mediate the conflict- to avoid any
unnecessary escalation.
B. Step back and encourage employees to resolve the conflict themselves.
C. Step out of the “field of action” for a moment, to gain insights into the
nature of the conflict.
D. Assign someone to mediate between the two parties involved.
3. What are the three most effective ways to identify what needs to change
in an organization?
A. Create mechanism that help identify deviations from desired results,
monitor outcomes and look for conflicts that indicate what needs to
change.
B. Listen to concerns of people inside and outside the organization, look
for conflicts and work as a team to identify which needs to be
changed or altered.
C. Retain a consulting firm to conduct an objective assessment of the
company’s issues, assign problem-solving reading material to the staff
and look for conflicts as clues to what needs to change.
D. Create a monitoring committee to assess the area of improvement.
4. Which of the following is the best step a leader can take when employees
express concerns about a rumoured change within the organization?
A. Reassure the employees that everything is going to be all right and that
the company upper management is working the develop an effective
plan.
B. Invite employees to express their concerns and shares ideas and
empower them to work together to contribute toward a shared
solution.
C. Minimize discussion about the rumours until a clear plan is ready for
implementation this gives senior managers time to develop an effective
plan. D. Reassure the employees that these rumoured changes are
manageable.
5. Leadership may be defined as:
a. The ability to motivate people to work towards a common goal.
b. The ability to command people to work towards a common goal.
c. The ability to discipline people.
d. The ability to prioritize investments.

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6. The___________ leadership style is an expression of the leader’s trust in
the abilities of his subordinates.
a. Participative
b. Delegative
c. Authoritarian
d. All of the above
7. Which of the following is something that a leader with people-oriented
behavior would most likely do?
A. Establish stretch goals.
B. Challenge employees.
C. Ensure employees follow company rules.
D. Listen to employee suggestions.
8. Transformational leaders:
A. Make meaningful changes in the activities and architecture of the
organization.
B. Communicate with some of the staff irregularly because they are busy
communicating with other stakeholders.
C. Practice “do as I say” rather than “do as I do” because they realize that
everyone cannot do the same thing.
D. Realize that they have the answers and employees help them to carry
out the solutions.
9. The capacity to influence people and accomplish desired objectives is
called:
A. power

B. leadership

C. authority

D. status

10. Which of the below is an example of laissez-fare leadership?

A. We can go out and talk about it so we can resolve the issue together.
B. I need your feedback before I make decision. Please speak out.
C. Everybody will fall in at 1400 hour sharp.
D. I know what is best for our company.

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11. The philosophy that guides an organization’s policies towards its
employees and costumers is an important part of
A. Management and strategy
B. Organizational behavior
C. Organizational culture
D. Organizational development
12. Bernard is described as an autocratic leader. Which of the following
statements would illustrate his attitude towards the employees in his
department?
A. Most employees are motivated by responsibility and a desire to learn.
B. Most employees only work to satisfy their higher order needs.
C. Most staff are unable to perform well unless provided with detailed
instruction.
D. Most employees enjoy the responsibility and challenge of work.
13. A manager who is prescribing employees’ tasks and granting them full
authority to accomplish them, said manager is performing what
managerial function?
A. Organizing
B. Controlling
C. Staffing
D. Delegating
14. The consistent line of management relationships from the top to the
bottom of an organization is called the?
A. Inter Departmental Relationship
B. System Flow
C. Chain of Command
D. Span of control
15. It is a school of management that takes a flexible approach to
management depending on the current situation
A. Scientific Management Theory

B. Classical Management Theory

C. Contingency Management Theory

D. Behavioral Management Theory

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16.The ratio of Personnel Services Expenditures to Annual Regular Income must
be
a. < 55% for 1st- 3rd income class and <45% for the 4th or lower income class.

b. > 55% for 1st- 3rd income class and > 45% for the 4th or lower income class.

c. < 45% for 1st- 3rd income class and <55% for the 4th or lower income class.

d. > 45% for 1st- 3rd income class and > 55% for the 4th or lower income class.

17. Real Property Tax Accomplishment Rate or RPTAR is

a. 75% of Total Current Collectibles and 35% Cumulative Five-Year Delinquencies.

b. 80% of Total Current Collectibles and 35% Cumulative Five-Year

Delinquencies.
c. 80% Cumulative Five-Year Delinquencies and 35% Total Current Collectibles.

d. 60% Cumulative Five-Year Delinquencies and 35% Total Current Collectibles.

18. These expenses must be excluded from the subsidy of LGU to finance LEEs
a. Social Services
b. Personnel Services
c. MOOE
d. none of the above
19. The following are true except
a. Per Capita Expenditures must be > average LGU income class

b. Debt Service Ratio must be < 20% of ARI

c. Per Capita Expenditures must be < average LGU income class

d. Social Services Expenditure Ratio must be > average of the LGU income class.

20. Which is not a requirement for the certification of NDSC and BC?
a. Annual COA Certificate

b. Letter Request from LCE

c. Certification of Existing Loan

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d. Actual Annual IRA from BIR

21. This is/are created to improve production and delivery of goods and services
for specific market.
a. LEEs

b. Public Utilities

c. OEEs

d. None of the above

22. Which is the 7th step in planning LEEs?

a. present LEEs proposal to the Sanggunian

b. Assess potential financial sources

c. Prepare Business Plan

d. Enact the ordinance creating LEEs

23. Which is not true about LEEs?

a. created by Local Finance Committee

b. engage on products and services that cannot adequately provided by private

sector.
c. provides daily basic necessities.

d. must pass the 4- Hurdle Criteria.

24. The following are true about budget except

a. spending within our means

b. investing in the right projects

c. delivering outright results

d. empowering citizens

25. It pertains to executive function Section 318 of RA7160

a. Fidelity Bond

b. Budget Preparation

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c. Creation of LEEs

d. Budget Loan Application

26. Who shall review the Appropriations Ordinance of provinces?
a. Local Sanggunian

b. BLGF Regional Director

c. BLGF Central Office

d. DBM Regional Office

27. Who shall sign all warrants drawn on the treasury for the expenditures of
Sanggunian?
a. Local Chief Executive
b. Local Treasurer

c. Vice Local Chief

d. Finance Local Committee

28. Budget Accountability refers to

a. release of Allotment

b. tracking of receipts and income

c. issuance of review action

d. certification of available appropriations

29. In budget execution, the Local Finance Committee is responsible in the

following except
a. prepare summary of financial performance target

b. prepare cash program

c. adjust cash program

d. none of the above

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30. Who is responsible in implementing corrective actions for negative
deviation?
a. Local Budget Officer
b. Local Finance Committee

c. Local Treasurer

d. Department Heads
31. Who renders Monetary opinion on the loan application process of LGUs?
a. BLGF Regional Director

b. BLGF Central Office

c. Bangko Sentral ng Pilipinas

d. Department of Budget and Management

32. What must be done if the propose loan is higher than the BLGF DSCBC
Certification?
a. Request for monetary board opinion

b. negotiate with the lending institution

c. submit Request for re- evaluation to BLGF Regional Office

d. negotiate with Bangko Sentral ng Pilipinas

33. It refers to the plan of organization and all the coordinated methods and
procedures adopted within the agency.
a. Risk Management

b. Internal Control

c. Plan of organization

d. Risk Response

34. The 4E’s in the Internal Control System are

a. economical, efficient, effective, ethical
b. economical, evident, effective, efficient

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 c. efficient, excellent, effective, economical
d. effective, economical, exploratory, educational
35. It is the general framework and basis for other components of
internal control.
a. control activities
b. control environment

c. risk assessment

d. information evaluation

36. What are the objectives of the Internal Control?

a. safeguarding assets

b. check data accuracy

c. check management policies

d. all of the above

37. Its purpose is to support decision- making

a. Risk Analysis

b. Risk Identification

c. Risk Evaluation

d. Risk Control

38. This pertains to managerial regulations on which proper functioning of

LGUs underlies
a. Risk Assessment
b. Plan of Organization

c. Control Activities

d. Coordinated Methods and measures

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 39. These are the policies and procedures established to address risk and
achieve LGUs goals and objectives.
a. Control activities
b. Risk Responses
c. Risk Identification
d. Control Environment
40.The four risk responses are
a. Identification, monitoring, evaluation, analysis

b. transfer, tolerate, terminate, treatment

c. maintaining, modifying, communicating, informing

d. transfer, control, decision, reconsideration

41. Which of the following is correct?

a. Barangay treasurer shall be bonded not exceeding 20 000

b. Maximum cash accountability is 10M

c. TOP shall be notified of the list of bonded officers within 5 days after the
appointment
d. Officers with not less than 50 000 shall be bonded

42. The amount of Fidelity bond shall be based on the total accountability of
a. Cash and accountable forms

b. Cash, property and accountable forms

c. Cash, property and Collectibles

d. Cash and property

43. IRA can be used on financing the following except

a. social development expenses

b. administrative development expenses

c. environmental development

28
 d. economic development
44.An act amending the certain sections of RA No. 6957 entitled "An act
authorizing the financing, construction, operation and maintenance of
infrastructure projects by the private sector and for the purposes.
a. RA No. 7718
b. RA No. 8817
c. RA No. 6657
d. RA No. 8177
45.The Revised IRR of R.A. No. 6957 as amended by R.A No. 7718 seek to, except:
A. Identify specific incentives, support and undertakings, financial or
otherwise, that may be granted to Project Proponents and provide a
climate minimum Government regulations
B. Ensure that Contractual Arrangements reflect appropriate sharing of risks
between the Government and the Project Proponent
C. Assure close coordination between national government and Local
Government Units (LGUs)
D. Ensure strict noncompliance by the Government and the Project
Proponent by their respective obligations and undertakings and the
monitoring thereof, in connection with or relative to Private Sector
Infrastructure or Development Projects to be undertaken under this act
and this Revised IRR
46. Refers to the regular, periodic repayment of principal and payment of
interest of a debt for a definite period of time, at the maturity of which the entire
indebtedness is full
A. Repayment
B. Amortization
C. Debt
D. Loan Obligation
47.A contractual arrangement under which the project proponent finances and
construct an infrastructure or facility and after its completion turns it over to the
government agency or local government unit concerned.

29
 a. Build-and-Transfer
b. Build-Lease-and-Transfer
c. Build-Transfer-and-Operate
d. Contract-Add-and-Operate

48.This arrangement is most suitable for the construction of any infrastructure or

development project, including sensitive facilities with security or strategic
infraction that the Government opts to operate directly.
a. Build-and-Transfer
b. Build-Lease-and-Transfer
c. Build-own-and-Operate
d. Build-Transfer-and-Operate
49. A contractual agreement under which project proponent finances and
constructs an infrastructure or facility and upon its completion turns it over to
the sponsor agency or local government unit on a lease arrangement.
A. Build-own-and-Operate
B. Build-Transfer-and-Operate
C. Contract-Add-and-Operate
D. Build-Lease-and-Transfer

50.Under this scheme the project proponent is authorized finance, construct,

own, operate and maintain an infrastructure or development facility.
A. Build-own-and-Operate
B. Build-Transfer-and-Operate
C. Contract-Add-and-Operate
D. Build-Lease-and-Transfer
51.A contractual arrangement under which the sponsor government agency or
local government unit contracts a private entity to build an infrastructure facility
on a turn key basis.
A. Build-own-and-Operate
B. Build-Transfer-and-Operate
C. Contract-Add-and-Operate

30
 D. Build-and-Transfer

52. Under this scheme, the little is transferred to the project sponsor as soon as
the facility is commissioned satisfactory, but the private entity operates the
facility on its behalf under an agreement.
A. Build-Transfer-and-Operate
B. Construct-Add-and-Operate
C. Build-and-Transfer
D. Build-Lease-and-Transfer

53.A contractual arrangement under which project proponent is authorized to

add any existing infrastructure facility which it is renting from the government
and to operate the expanded project over an agreed franchise period.
A. Build-own-and-Operate
B. Build-Transfer-and-Operate
C. Contract-Add-and-Operate
D. Build-and-Transfer
54.A contractual arrangement which an existing facility is turned over to the
private sector to refurbish, operate and maintain for a franchise period, at the
expiry of which it is turned to the Government.
A. Build-and-Transfer
B. Build-Lease-and-Transfer
C. Rehabilitate-Operate-Transfer
D. Rehabilitate-Own-Operate

55. A contractual arrangement under which an existing facility is turned over to

the private sector to refurbish, operate and maintain with no time limitation
imposed on ownership. As long as the operator is not violation on its franchise, it
can continue to operate the facility in perpetuity.
A. Contract-Add-and-Operate
B. Build-Lease-and-Transfer
C. Rehabilitate-Operate-Transfer
D. Rehabilitate-Own-Operate

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56. A contractual arrangement whereby favorable condition external to a new
infrastructure project which is to be built by a Project Proponent are integrated
into arrangement by giving that entity to the right develop adjoining property,
and thus, enjoy some of the benefits the investments creates such a higher
property or rent values.
A. Build-Lease-and-Transfer
B. Rehabilitate-Operate-Transfer
C. Rehabilitate-Own-Operate
D. Develop-Operate-Transfer

57.Refers to any entity accredited under Philippine laws, or that should be

accredited under
Philippine laws in accordance with Section 5 4 (av) of Revised IRR or RA 6957 as
amended by RA No. 7718 which may or may not be the Project Proponent and
which shall undertake the actual Construction and/or supply of equipment for
the project.
A. Supplier
B. Contractor
C. Investor
D. Proponent
E. Facility Operator

58.Under the Revised IRR RA 6957, as amended by RA No. 7718, the following
are the eligible types of projects, except:
A. High ways, including expressways, roads, bridges, interchanges, tunnels,
and related facilities.
B. Water supply, sewerage, drainage, and related facilities
C. Telecommunications, backbone network, terrestrial, and satellite facilities,
and related service facilities
D. Financial and medical assistance and related projects

59.All agencies/LGUs shall provide wide publicity of the List of Priority Projects
proposed for implementation under the Contractual arrangements or schemes as
authorized under the Act and these Revised IRR to keep interested/concerned
parties informed thereof. For this purpose, all agencies/LGUs shall cause their

32
perspective List of Priority Projects to be published at least _____. and where
applicable, international newspapers of general circulation. Said List should also
be posted continuously in the websites PPP center and the concerned
agency/LGU, if available
A. Once every six (6) months in national newspaper of general circulation
B. Once every three (3) months in national newspaper of general circulation
C. Twice every six (6) months in national newspaper of general circulation
D. Twice every three (3) months in national newspaper of general circulation
60.National project must be part of the Agency's development programs and
shall be approved as follows, except:
A. Projects costing up to Php 300 million, shall be submitted to ICC for
approval
B. Projects costing more than Php 300 million, shall be submitted to the
NEDA Board for approval upon the recommendation of ICC
C. Projects costing more than Php 300 million, shall be submitted to the
NEDA Board for approval without the recommendation of ICC
D. Regardless of the amount, negotiated projects shall be submitted to the
NEDA Board for approval upon the recommendation of ICC
61.For solicited projects, changes in the terms and conditions of the draft
contract after its approval by the head of agency/LGU may be allowed prior to
submission of bids provided that the head of agency/LGU shall secure approval
of the appropriate Approving Body for any of the following changes.
A. Changes which reduce the economic internal rate of return below the
hurdle rate used in the original analysis of the project.
B. Changes which increase the total Government subsidy to a project by at
least five (5) percent of the total project cost
C. Changes in the risk profile which are detrimental to the best interest of the
government
D. All of the above
62.The deadline for approval of solicited projects upon satisfactory compliance
by the concerned Agency/LGU with the requirements of the Approving Body
Failure of the Approving Body to act on the project within the specified period

33
shall be deemed an approval thereof and the concerned agency/LGU may
proceed with the solicitations of the proposals.
A. within ten (10) working days
B. within fifteen (15) working days
C. within thirty (30) working days
D. within Forty five (45) working days

63.The required bid security for a project cost (as estimated by the agency/LGU
or proposed by the project proponent) amounting to less than Php 5.0 million
A. 2.0% of the project cost
B. 3.0% of the project cost
C. 1.5% of the project cost or Php 100 million whichever is higher
D. 1.0% of the project cost or Php 150 million whichever is higher

64.The required bid security for a project cost (as estimated by the agency/LGU
or proposed by the project proponent) amounting Php 5.0 million to less than
Php 10.0 million
A. 2.0% of the project cost
B. 3.0% of the project cost
C. 1.5% of the project cost or Php 100 million whichever is higher
D. 1.0% of the project cost or Php 150 million whichever is higher

65. The required bid security for a project cost (as estimated by the agency/LGU
or proposed by the project proponent) amounting Php 10.0 million or more
A. 3.0% of the project cost
B. 1.5% of the project cost or Php 100 million whichever is higher
C. 1.0% of the project cost or Php 150 million whichever is higher
D. 2.0% of the project cost or Php 200 million whichever is higher
66.Direct negotiation shall be resorted to when there is only one complying
bidder left as defined hereunder, except:
A. If after advertisement, only one prospective Project Proponent applies for
the prequalification and it meets the pre-qualification requirements, after

34
 which, it is required to submit a bid/proposal which is subsequently found
by the agency/LGU to be complying
B. If after advertisement more than one prospective Project Proponent
applied for prequalification but only one meets the pre-qualification
requirements after which it submits a bid proposal that is found by the
agency/LGU to be complying
C. If after pre-qualification more than one prospective Project Proponent
submit bids but only one is found by the agency/LGU to be complying
D. If after pre-qualification more than one prospective Project Proponent
submit bids but none is found by the agency/LGU to be complying
67.Responsible for the coordination and monitoring projects implemented under
Contractual arrangements or schemes authorized these Revised IRR
A. PPP Center
B. Government Owned and Controlled Corp.
C. Local Government Units
D. Commission on Audit

68.A report regarding a salient features or a copy of each contract, involving a

project entered into under provisions of the Revised IRR shall be submitted to
A. Senate
B. Sangguniang Panlalawigan
C. Congress
D. Senate President

69.The agency/LGU may offer any one or more Government Undertakings

relative to a project, which shall be pre-cleared in principle, in writing, by the
department, bureau, office, commission, authority, agency, GOCC or LGU or any
government entity that will grant as the same as mandated with law; provided
that the total government undertakings shall not exceed
A.20%
B. 50%
C. 35%
D. 40%

35
70.This shall refer to the subscription by the Government or any of its agencies or
Local Government Units of shares of stock or other securities convertible to
shares the stock of the project company, whether such subscription will be paid
by the money or assets.
A. Credit Enhancement
B. Direct Government Equity
C. Direct Government Subsidy
D. Equity Sharing

71.This shall refer to support a development facility by the Project Proponent

and/or agency/LGU concerned, the provision of which is contingent upon the
occurrence of certain events and/or risks as stipulated in the contract.
A. Direct Government Subsidy
B. Performance Undertaking
C. Credit Enhancement
D. Direct Government Equity

72.If the Project Proponent refuses or fails to perform any of the provisions of
the approved contract with such diligence as will ensure the project's
completion, operation and maintenance in accordance with the prescribed
technical and performance standards or otherwise fails to satisfy any contact
provisions including compliance with the prescribed/agreed milestone activities,
or commits any substantial breach of the approved contract, the agency/LGU
shall notify the Project Proponent in writing of the same and if not corrected
within the time specified, the agency/LGU concerned may rescind the contract in
such an event the agency/LGU concerned may
A. Take over the facility
B. Abandon the project
C. Allow the Project Proponent's lenders/creditors/banksnot to exercise their
rights and interests under the loan and collateral documents with respect
to the project
D. D. None of the above

36
73.All revenues and receipts pertaining to or accruing to the Project Proponent
including interest or yield thereon which may be remitted directly to the Project
Proponent, as may be stipulated in the contract shall be treated as:
A. Government Fund
B. Special Fund
C. Private Fund
D. Trust Fund
74.Where the Project Proponent fails to satisfactorily complete the work on or
before completion date, including any extension or grace period duly granted or
meet the operating performance standard as prescribed in the contract, the
Project Proponent shall pay the agency/LGU concerned liquidated damages as
specified in the contract as an indemnity and not by way of penalty
A. Moral Damages
B. Liquidating Damages
C. Nominal Damages
D. Monetary Damages

75.In the event that the agency/LGU concerned shall find any deviation from or
non-compliance with the approved plans, specifications and standards, it shall
bring the same to the attention of:
A. Commission on Audit
B. Project Proponent
C. Office of the President
D. Congress

76.For projects where the proponent or other third parties shall operate the
project, the Agency/LGU shall determine whether the Project Proponent will post
a performance security for operations, simultaneously with the acceptance of the
facility. The performance security for operations will be issued to guarantee the
proper operation of the project in accordance with the operating parameters and
specifications under the contract. The Agency/LGU shall determine the amount
but the form shall be in accordance with the preceding section. This performance
security for operations shall be valid:

37
 A. Forty five (45) calendar days after turn over
B. Ninety (90) calendar days after turn over
C. Sixty (60) calendar days after turn over
D. Thirty (30) calendar days after turn over

77.Responsible for the integrity of its detailed engineering designs and plans.
A. LGUs
B. Commission on Audit
C. Project Proponent
D. Department of Public Works & Highways

78.The authorized signatory(ies) of the winning bidder and the Head of

Agency/LGU shall execute and sign the contract for the project as approved in
accordance with the Section 2.8.
A. Within five (5) calendar days from the receipt by the winning bidder of the
notice from the Agency/LGU that all conditions stated in the Notice of
Award have been complied with
B. Within ten (10) calendar days from the receipt by the winning bidder of
the notice from the Agency/LGU that all conditions stated in the Notice
of Award have been complied with
C. Within fifteen (15) calendar days from the receipt by the winning bidder of
the notice from the Agency/LGU that all conditions stated in the Notice of
Award have been complied with
D. Within twenty (20) calendar days from the receipt by the winning bidder
of the notice from the Agency/LGU that all conditions stated in the Notice
of Award have been complied with

79.In the case of solicited bids, when no complying bids are received or in case of
failure to execute the contract with a qualified and contracting bidder due to the
refusal of the latter, the bidding shall be declared a failure. In such cases, the
project shall be subjected to:
A. Buy out
B. Cancellation of the project
C. Re Bidding

38
 D. Take out

80.The execution of the contract shall be within the period of the validity of the
bid security. The required bid security shall be valid for a reasonable period but
in no case beyond:
A. One hundred eighty (180) calendar days following the opening of the bids
B. Two hundred (200) calendar days following the opening of the bids
C. Two hundred twenty (220) calendar days following the opening of the bids

D. Two hundred forty (240) calendar days following the opening of the bids

81.The PBAC shall post the notice of award and/or bidding results in the
PHILGEPS, websites of PPP Center and of the Agency/LGU, if any, within:
A. Seven (7) calendar days from the issuance of Notice of Award
B. Ten (10) calendar days from the issuance of Notice of Award
C. Twelve (12) calendar days from the issuance of Notice of Award

D. Fifteen (15) calendar days from the issuance of Notice of Award

82.In the event of refusal, inability or failure of the winning comparative

proponent to enter into contract with the Agency/LGU within the specified
time in the Tender Documents, its bid security shall be:
a. Used for the next bidding process
b. Forfeited in favor of the Agency/LGU
c. Remained as payable by the LGU
d. Withdrawable anytime
83.In such events, however, any disqualified bidder may appeal the
disqualification of the concerned Agency/LGU to the Head of the Agency, in case
of national projects, or to the Head of the DILG unit concerned or his authorized
representative, in case of local projects
A. Within fifteen (15) working days from receipt of the notice of
disqualification
B. Within twenty (20) working days from receipt of the notice of
disqualification
C. Within Twenty five (25) working days from receipt of the notice of
disqualification
39
 D. Within thirty (30) working days from receipt of the notice of
disqualification
84. Direct negotiation shall be resorted to when there is only on complying
bidder left as defined hereunder, except:
A. If, after advertisement, two prospective Project Proponent apply for pre-
qualification and I meets the pre-qualification requirements, after which,
it is required to submit a bid/proposal that is found by the Agency/LGU
to be complying
B. If, after advertisement, more than one prospective Project Proponent
applied for prequalification but only one meets the pre-qualification
requirements, after which it submits a bid/proposal that is found by the
Agency/LGU to be complying
C. If, after pre-qualification, more than one prospective Project Proponent,
only one submits a bid/proposal that is found by the Agency/LGU to be
complying
D. If, after pre-qualification, more than one prospective Project Proponent,
submits bids but only one is found by the Agency/LGU to be complying
85.The Agency/LGU concerned reserves the right to the following, except,
A. Reject any or all bids
B. Waive any minor defects therein
C. Accept the offer it deems most advantageous to the Government
D. None of these
86.The Basic engineering design of the project should conform to the minimum
design and performance standards and specifications set by the Agency/LGU
concerned as prescribed in the bidding documents.
A. Operational feasibility
B. Technical soundness
C. Environmental standards
D. Project financing

87. Withdrawal and/or modification of bids may be allowed upon

A. Written notice by the bidder concerned to the Agency/LGU after the time
and date set for the opening of bids

40
 B. Oral notice by the bidder concerned to the Agency/LGU prior to the time
and date set for the opening of bids
C. Written notice by the bidder concerned to the Agency/LGU prior to the
time and date set for the opening of bids

D. Written notice by the bidder concerned to the Agency/LGU during the time
and date set for the opening of bids
88.Bids submitted after the deadline for submission prescribed in the
“Instructions to the Bidders” shall be
A. Accepted
B. Considered late and shall be returned opened
C. Considered late and shall be returned unopened
D. Considered late and shall not be returned

89. The “Technical Proposal” shall contain the following requirements, as may be
deemed necessary by the concerned Agency/LGU, except:
A. Acceptance/Compliance statements with regard to all terms and
conditions in the tender documents including those with regard to
financial parameters and any changes which were made thereto by the
Agency/LGU prior to bid submission
B. Operational feasibility of the project, which shall not indicate the
proposed organization, methods and procedures for the operation and
maintenance of the project under bidding
C. Technical soundness/preliminary engineering design, including proposed
project timeline;
D. Preliminary environmental assessment, which shall indicate the probable
adverse effects of the project on the environment and the corresponding
mitigating measures to be adopted
90.The proposed financing plan should positively show that the same could
adequately meet the Construction cost as well as the operating and maintenance
cost requirements of the project.
A. Operational feasibility
B. Technical soundness

41
 C. Environmental standards
D. Project financing
91.Responsible for having taken all the necessary steps to carefully examine and
acquaint himself with the requirements and terms and conditions of the bidding
documents with respect to the cost, duration, and execution/operation of the
project as it affects the preparation and submission of his bid
A. Prospect bidder
B. Department of Public works and Highways
C. LGU
D. BAC
92.The Agency/LGU concerned shall allow prospective bidders to Pre-qualify and
Bid to prepare their respective prequalification documents.
A. At least fifteen (15) calendar days from the last date of publication of the
Invitation
B. At least twenty (20) calendar days from the last date of publication of the
Invitation
C. At least thirty (30) calendar days from the last date of publication of the
Invitation
D. At least Forty five (45) calendar days from the last date of publication of
the Invitation
93. The draft contract should clearly define the basic and legal relationship
between the parties and their rights and responsibilities including the specific
Government Undertakings to be provided by the Agency/LGU relative to the
project. The draft contract shall have the following mandatory terms or
conditions, except;
A. Specific contractual arrangement, term, and scope of work;
B. Project technical specifications and system features;
C. Implementation milestones including those for securing other approvals,
project completion date;
D. Moral damages as contemplated under Section 12.14
94.Minimum design and performance standards/specifications, including
appropriate environmental standards as prescribed by the DENR, shall be clearly
defined and shall refer more to the desired quantity and quality of the outputs of

42
the facility and should state that non-conformity with any of these minimum
requirements shall render the bids as nonresponsive. Likewise, for the purpose of
evaluating bids, the following economic parameters, among others, shall be
prescribed, except;
A. Discount rate, foreign exchange rate and inflation factor as prescribed by
the Approving Body, if applicable;
B. Minimum period of project Construction;
C. Fixed term for project operation and collection of the proposed
tolls/fees/rentals/charges, if applicable;
D. Formula and price indices to be used in the adjustments of
tolls/fees/rentals/charges, if applicable;
95. Any one or more of the following criteria may be used in the evaluation of
the financial component of the bid for determining the most advantageous bid
for the Government, except;

A. Lowest proposed toll, fee, rental or charge at the start of project

operation, if a preagreed parametric tariff adjustment formula is
prescribed in the bid document;
B. Highest proposed toll, fee, rental or charge at the start of project
operation, if a preagreed parametric tariff adjustment formula is
prescribed in the bid document;
C. Highest present value of proposed payments to Government, such as:
concession fees, lease/ rental payments, fixed/guaranteed payments,
and/or variable payments/percentage shares of revenue for the period
covered by the contracts
D. Lowest present value of government subsidy to be provided for the period
covered by the contract;
96.Responsible for all aspects of the pre-bidding and the bidding process in the
case of solicited proposals, and for the comparative bidding process (otherwise
known as the ‘’Swiss Challenge’’, in the case of Unsolicited Proposals, including,
among others, the preparation of the bidding/tender documents, publication of
the invitation to pre-qualify and bid, prequalification of prospective bidders,
conduct of pre-bid conferences and issuance of supplemental notices,
interpretation of the rules regarding the bidding, the conduct of bidding,

43
evaluation of bids, resolution of disputes bidders, and recommendation for the
acceptance of the bid and/or for the award of the project.
A. Commission on Audit
B. PBAC
C. Project Proponent
D. LGU concerned
97.The Head of the Agency/LGU shall create a BOT Pre-qualification, Bids and
Awards Committee (PBAC). The Head of Agency/LGU shall determine the
appropriate composition of the PBAC, provided it includes the following among
its members, except;
A. At least a second ranking regular official of the Agency/LGU - Chairman
B. A legal officer – Member-Secretary
C. One (1) technical officer knowledgeable with the technical aspects or
requirements of the project, duly designed by the Head of the Agency/LGU
concerned on a project-toproject basis-Member (provisional)

D. One (1) technical officer knowledgeable with technical aspects or

requirements of the project from a concerned regulatory body, when
applicable, to be invited by the Agency/LGU concerned on a project-to-
project basis – Member (provisional and nonvoting)
98.Projects undertaken through the Build-Own-and-Operate (BOO) scheme or
through Contractual Arrangements or schemes other than those defined under
Section 2 of the Act shall require
A. Congress Approval
B. Presidential Approval
C. COA Approval
D. DPWH Approval

99. The prescribed statutory counsel, and if necessary, the DOF, shall issue an
opinion on the draft contract
A. Within ten (10) days upon receipt thereof
B. Within five (5) days upon receipt thereof
C. Within fifteen (15) days upon receipt thereof
D. Within twenty (20) days upon receipt thereof

44
100.Any updates to the lists of Priority Projects, local and national, shall be
submitted to the PPP Center
A. Within three (3) days from the approval of the posting in the PPP Center
website
B. Within four (4) days from the approval of the Approving Body for
information and posting in the PPP Center website
C. Within five (5) days from the approval of the Approving Body for
information and posting in the PPP Center website
D. Within six (6) days from the approval of the Approving Body for
information and posting in the PPP Center website
101.Refer to project proposals submitted by the private sector, not in response
to a formal solicitation or request issued by an Agency/LGU and not part of the
list of priority projects as identified by Agency/LGU, to undertake infrastructure
or Development Projects which may be entered into by Agency/LGU subject to
the requirements/conditions prescribed under Rule 10.
A. Unsolicited proposals
B. Solicited projects
C. Public utility projects
D. Service utility projects

102.Refer to provincial, city, municipal and/or barangay government entities.

A. National Government Agencies
B. Government Owned and Controlled Corporation
C. Local Government Units
D. NGOs/POs

103.Refers to a certificate, permit or other form of authorization required to be

obtained by a Facility Operator from a Regular prior to operating a Public Utility
Project.
A. Facility operator
B. Direct Government Guarantee
C. Franchise
D. Business Permit

45
104. Refers to an agreement whereby the Government or any of its
Agencies/LGUs guarantees to assume responsibility for the repayment of debt
directly incurred by the Project Proponent in implementing the project in case of
a loan default
A. Facility operator
B. Direct Government Guarantee
C. Franchise
D. Contractual agreement

105.What is the last phase in the Local Budget Process?

A. Preparation
B. Authorization
C. Execution
D. Accountability
106.All of the following are required to get business tax or business permit fees
before starting operation except for one.

A. Copra and corn buyer

B. Lumber and hardware business
C. Doctor practicing his profession
D. Computer shop owner

107.It is the fair market value of the real property multiplied by the assessment
level.

A. Salvage Value
B. Assessed Value
C. Market Value
D. Safe Value

108.What is the tax rate for old businesses of Printing and Publication in the
province?

A. 50% of 1%
B. 60% of 1%
C. 70% of 1%
46
 D. 75% of 1%
109.What is the tax rate for newly started businesses of Printing and Publication
in the province?

A. 3/20 of 1%
B. 2/20 of 1%
C. 1/20 of 1%
D. 4/20 of 1%
110.When the sand, gravel and other quarry resources are extracted from the
barangay of a component city the, the appropriate sharing shall be on what
percentage?

A. Province – 30%, component city – 30%, barangay extracted – 40%

B. Province – no share, component city – 50%, barangay extracted – 50%
C. Province – 40%, component city – 30%, barangay extracted – 30%
D. Province – no share%, component city – 60%, barangay extracted – 40%

111.Extractions from private lands are within the taxing authority of:

A. Bureau of Internal Revenue

B. Local Government Unit
C. Land Registration Authority
D. Department of Trade and Industry

112.Which of the following is not a common limitation on the taxing powers of

LGU?

A. Income tax, except when levied on banks and other financial institutions
B. Documentary Stamp Tax
C. Taxes, fees or charges on agricultural and aquatic products when sold by
marginal farmers of fisherman
D. none of the above
113.What is the distribution of proceeds of Basic Real Property Tax in the case of
the province?

A. Province – 40%. Municipality – 35% and Brgy 25%

47
B. Province – 35%. Municipality – 40% and Brgy – 25%
C. Province – 35%. Municipality – 40% and Brgy – 20%
D. Province – 40%. Municipality – 35% and Brgy – 25%
114. What is the distribution of proceeds of the Basic Real Property Tax in the
case of the cities?

A. City – 30% Barangay 70%

B. City – 40% Barangay – 60%
C. City – 70% Barangay – 30%
D. City – 60% and Barangay – 40%
115.This Manual was developed under the European Union-funded “Support to
the Local Government Units for more effective and accountable Public Financial
Management (LGU PFM2) Project.
A. Local Government Taxation Practices

B. Local Public Financial Management Tools for Electronic Statement of Receipts

and Expenditures
C. Statement of Receipts and Expenditures

D. None of the above

116.This report is system generated through the ESRRE SYSTEM of the BLGF
A. Statement of Receipts and Expenditures

B. LGU Monitoring System

C. Accountability Development

D. Financial Cash Flow

117.The following are the uses of ESRE except

A.LGU Monitoring System
B. Policy Development
C. Statistics
D. None of the above
118.The following are based on revenue elasticities with respect to GDP and on
target growth rates set by NEDA except
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 A. Business Tax
B. Fees and Charges
C. Income from economic enterprises
D. Real Property Tax
119.Consolidated data in debt certification, creditworthiness rating, LGU income
classification are useful in
A. Loan Application
B. Forecasting and Planning
C. Policy Formulation
D. Budget Allocation

120.Local fiscal and financial performance can be evaluated through that data
inputted in this system
A. Internal Control System

B. Data Management System

C. LGU Monitoring System

D. Risk Management System

121.These are granular datasets on local finance that can be used to develop,
maintain and draw economic and fiscal capacity models.
A. Statistics

B. Data criteria

C. Cash flow

D. Nominal values

122.This measures the sensitivity by which one variable changes given a change
in another variable that can be theorized or postulated to have a behavioral
relationship to the first variable.
A. elasticity
B. demand and supply
C. equilibrium
D. revenue growth

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123.These are those that define the extent to which the LGU services obligations
and considers the importance of capital expenditure and local government
capacity to attract long term financing for investments.
A. Expenditures Indicators

B. Debt and Capacity Indicators

C. Revenue Indicators

D. None of the above

124.It is a measure that shows the financial condition of something which could
be a person, a firm, an industry, a country, or in this case, a Local Government
Unit (LGU)
A. Financial Management Capacity Indicator
B. Revenue Indicators
C. Revenue Stability
D. Financial Statement

125. The BLGF emphasized that the analytical framework should also cover
linkages between the
A. LGFPMS to growth rate
B. LGFPMS to expenditures
C. LGFPMS to income class

D. LGFPMS to credit rating

126.Compute the transfer tax of the real property for sale in province with the
following:
Zonal Value – 1,700,000.00
Sale Value – 1,650,000.00
Market Value – 1,600,000.00
Tax Rate is 60% of 1%
Time of payment is fifty five (55) days from the execution or notarization date.
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 A. P 10,200.00
B. P 9,900.00
C. P 9,600.00
D. P 10,140.00

127.Mrs. Pascual inherited two (2) lots from his father, first lot has a market value of
P 1650,000.00 and the second lot has an assessed value of P 1,000,000.00.
Transfer tax rate in his province is 50% of 1%. Compute the transfer tax of the
properties inherited by Mrs. Pascual from his father if she pays within sixty (60)
days from the date of death of his father.
A. P13 150
B. P13 050
C. P13 250
D. P 13 200
128.BASIC Printing House has a gross receipt of P 5,400,000.00 on preceding
calendar year. How much tax will they pay if they are operating in a province at a
maximum tax rate?
A. P 21 600
B. P37 800
C. P32 400
D. P27 000
129.RLGC Printing has an initial capital investment of P 4,600,000.00 for their
newly started business in Bacolod City. How much will they pay for the
business tax?
A. P7 000
B. P7 100
C. P2 300
D. P6 900
130.LAUGH BAR has a gross receipt from admission fees of P 99,000.00 from
their operations, how much is the amusement tax if the tax rate is at
maximum?
A. P9 900
B. P9 000

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 C. P4 960
D. P4 500
131.Compute for the sand and gravel tax due in the province if the fair market
value of the sand is P 220.00 per cubic meter and 50 cubic meters were
extracted with the maximum tax rate used?
A. P 1 000
B. P 1 100
C. P 11 000
D. P 1 200
132.It is known as Ease of Doing Business and Efficient Government Delivery Act
of 2018
E. RA 10132
F. RA 11032
G. RA 1132
H. RA 1123
133.It refers to the written approval or disapproval of the LGU on the application
or request by a person or an agency.
a. Action
b. Charter
c. Transaction
d. Processing

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