GOVERNMENT ACCOUNTING

GOVERNMENT ACCOUNTING 1. One of the following is not considered government income. (a) proceeds from loans and borrowings (b)government buildings (c) grants and aids received from foreign governments (d) taxes 2. W ...

GOVERNMENT ACCOUNTING 1. One of the following is not considered government income. (a) proceeds from loans and borrowings (b)government buildings (c) grants and aids received from foreign governments (d) taxes 2. What are the books of accounts in the government? (a) books of COA (b) books of COA and books of treasury (c) books of COA and books of agency (d)books of COA, books of treasury and books of agency 3. Which is incorrect concerning government accounting? (a) Laws, rules and regulations guide the accounting procedure for government accounting. (b) Depreciation is taken up regularly in government accounting. (c) The use of corollary entry is not adopted. (d)In government accounting, emphasis is on fair presentation, so that reports are stated as “opinion”. 4. The objectives of government accounting include (choose the incorrect one): (a) to report on the financial position and results of operations of government agencies (b) to provide for control of the acts of public bodies and offices in the receipt, disposition, and utilization of funds and property (c) to provide information concerning past and present operations and to provide a guidance for future operations (d)to present fairly the financial position, performance and cash flows of government-owned corporations 5. This consists of money and resources of the local government which are available for the payment of expenditures, obligations or purposes not specifically declared by law as accruing and chargeable to, or payable from, any other fund. (a)general fund (c) special education fund (b) trust fund (d) depository fund 6. What is the role of the Bureau of Treasury in relation to government accounting responsibility? (a)to receive and keep national funds and manage or control disbursements thereof (b) to design, prepare, and approve the accounting systems of government agencies (c) to keep the general accounts of the national government (d) to prepare the annual financial report of the national government, its instrumentalities and government-owned or controlled corporations 7. It represents all funds received by the government from taxes, grants, aids and borrowings. (a)government income (c) cash fund (b) government revenue (d) borrowings 8. In government accounting, the control accounts for revenue and expenditures are found in: (a)the budget and operations account (b) both the balance sheet and budget and operations account (c) national clearing accounts (d) balance sheet accounts 9. He is principally responsible for the fiscal administration of the local government. (a)local chief executive (c) provincial treasurer (b) municipal accountant (d) commission on audit 10.The main concern is availability and use of funds for public services. (a) Commission on Audit (c) National Treasury (b) Department of Finance (d) National Budget System 11.Which department prepares the national budget which serves as the basis of the general appropriation law? (a)Executive department (c) Judiciary department (b) Legislative department (d) Each government agency 12.Which is not charged with the government accounting responsibility? (a) Commission on Audit (c) Bureau of Treasury (b) Department of Budget and Management (d) Legislative Department 13.Budget accountability includes (choose the incorrect one): (a) safeguarding government resources (b) adherence to legal requirements, administrative policies and regulations, and efficiency and economy in operations (c) results of government programs and activities are reflected in accomplishments, benefits and effectiveness (d)payment for misappropriated amount 14.Which is an ordinary income? (a)Tax (c) Repayment of advances (b) Grant or aid from foreign country (d) Loan or borrowing 15.It is an appropriation which does not require periodic legislative action and referred to as “automatic appropriation”. (a)standing appropriation (c) supplemental appropriation (b) special appropriation (d) contingent appropriation 16.It is an amount committed to be paid by the government arising from an act of a duly authorized administrative officer and which binds the government to the immediate and eventual payment of money. (a)obligation (c) allotment (b) appropriation (d) commitment 17.Which government body keeps the general account of government, promulgates accounting rules and regulation, and submits to the President and Congress an annual financial report of the government? (a)Commission on Audit (b) Department of Budget and Management (c) Bureau of Treasury (d) Department of Finance 18.This is a sum of money or other government resources set aside for the purpose of carrying out specific activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations, and constitute an independent fiscal and accounting entity. (a) cash disbursement ceiling (c) fund (b) appropriations (d) budget 19.In government accounting, it is not correct: (a) to regularly take up depreciation. (b)to adopt a combination of the cash basis and accrual basis. (c) to correct a debit error by a debit entry but in the negative. (d) to emphasize on correctness, so reports are “certified correct”. 20.The functions and activities necessary for the performance of a major purpose for which a government entity is established. (a)program (c) resources (b) project (d) internal control 21.It is a list of ledger accounts prescribed by COA for use of the national government, local government and government-owned or controlled corporations except financial institutions. (a)standard government chart of accounts (c) balance sheet (b) chart of accounts (d) statement of operations 22.No money shall be paid out of the National Treasury except in pursuance of an appropriation law. This explicitly describes what salient feature of government accounting? (a) fund accounting (c) obligation accounting (b) budgetary accounting (d) treasury disbursement coding system 23.Who may contract or guarantee foreign loans on behalf of the Republic of the Philippines with the prior concurrence of the Monetary Board and subject to such limitations as may be provided by law? (a)President of the Republic of the Philippines (b) President of the Senate (c) Speaker of the House of Representatives (d) Chief Justice of the Supreme Court 24.No money shall be paid out of the National Treasury except in pursuance of: (a)appropriation (c) obligation (b) allotment (d) special executive order 25.It is the government control mechanism which provides for the maximum amount which an agency can commit the resources of the government. (a) fund accounting (c) budgetary accounting (b) obligation accounting (d) accounting system 26.It is the authorization from the Department of Budget and Management to any agency to incur obligation up to a specified amount that must be within the legislative appropriation. (a) obligation (c) allotment (b) appropriation (d) fund release 27.Which is false concerning constitutional provisions related to government budgeting? (a) No law shall be passed authorizing any transfer of appropriation. (b)All money collected or any tax levied for a special purpose may be paid out for any public purpose. (c) Discretionary funds appropriated for particular officials shall be distributed only for public purposes. (d) No money shall be appropriated for any sect, church or denomination. 28. A feature of government accounting that provides uniform accounting for incurring and liquidating obligations. The books used in this phase of accounting are the general journal and analysis of obligations, the journal of disbursements by disbursing officers, the journal of warrants issued and the journal of checks issued. (a)obligation accounting system (c) budgetary system (b) advice of allotment (d) obligation incurred 29.This financial statement is submitted by government accounting to Commission on Audit. It shows the excess (deficit) of income over expenditures for the fiscal period then ended. (a) statement of changes in financial position (b) preliminary trial balance (c)statement of operations (d) final trial balance 30.Government accounting and commercial accounting are similar in the following, except: (a) Double entry basis (c) Periodic financial reports and statements (b) Books of original entry (d) Basis of accounting 31.One of the following is not considered government income: (a) proceeds from loans and borrowings (b)government buildings (c) grants and aids received from foreign governments (d) taxes 32.This financial statement is submitted by government accounting to the Commission on Audit. It shows the excess (deficit) of income over expenditures for the fiscal period then ended. (a) statement of changes in financial position (b) preliminary trial balance (c)statement of operations (d) final trial balance 33.What are the rules on the use of government funds? (a) no obligations shall exceed allotment (b) no liquidation shall exceed obligation (c) no allotment shall exceed appropriation (d)all of these 34.These are the subsidiary ledger accounts showing the details of income and expenditures. (a) balance sheet accounts (c) subsidiary ledger accounts (b)budget and operation accounts (d) statement of operations accounts 35.Which is not a fundamental principle of government fiscal operations? (a) Fiscal responsibility shall, to a greater extent, be shared by all those exercising authority over financial affairs, transactions, and operations of the government agency. (b) Claims against government funds shall be supported with complete documentation. (c) All laws and regulations applicable to financial transactions shall be faithfully adhered to. (d)Generally accepted accounting principles must be observed in recording government financial transactions. 36.Congressional authorization in the form of law to make payment out of the public treasury for specific purposes after compliance with certain conditions is known as: (a)appropriation (c) budgeting (b) allotment (d) obligation 37.The process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof is: (a) government fiscal administration (c) government accounting (b) budgetary accounting (d) obligation accounting 38.Which is not a characteristic of the local government accounting system? (a) The fundamental principles of government fiscal operations governing the national government are also applicable to the local government. (b)The local government is not required to formulate its budget for the fiscal year. (c) The local government follows the standard government chart of accounts. (d) The fundamental accounting principles and procedures observed by the local government do not differ from those adopted by the national government. 39.It is the trial balance prepared after the adjusting and closing entries have been posted. Preliminary Final Preliminary Final (a) Yes Yes (c) No Yes (b) Yes No (d) No No 40.A feature of government accounting that provides for the ceiling or maximum amount an agency can spend or incur in the performance of its functions is known as: (a) budgetary accounting (c) obligation accounting (b) responsibility accounting (d) fund accounting 41.One of the following is not considered government income. (a) proceeds from loans and borrowings (b)government buildings (c) grants and aids received from foreign governments (d) taxes 42.The generally accepted accounting principles also apply to: (a) the Board of Accountancy (c) The Philippine Institute of CPAs (b) the Bureau of Internal Revenue (d)The Professional Regulation Commission 43.A feature of government accounting that provides for the ceiling or maximum amount an agency can spend or incur in the performance of its functions is known as: (a) budgetary accounting (c) obligation accounting (b) responsibility accounting (d) fund accounting 44.The Philippine Constitution provides that: (a)where there occurs a budget deficit, the President of the Philippines shall have the power to levy and impose taxes in order to meet the deficit. (b) GAAP as well as sound management and fiscal administration shall be observed in the utilization of government funds, provided they do not contravene existing laws and regulations. (c) the local chief executive is principally responsible for the fiscal administration of the local government. (d)the Congress may not increase the appropriations recommended by the President of the Philippines for the operation of the Government as specified in the budget. 45.In government accounting, the control accounts for revenue and expenditures are found in: (a)the budget and operation accounts (b) both the balance sheet and budget and operation accounts (c) national clearing accounts (d) the balance sheet accounts 46.Congressional authorization in the form of law to make payment out of the public treasury for specific purposes after compliance with certain conditions is known as: (a) appropriation (c) budgeting (b) allotment (d) obligation 47.The process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof is: (a) government fiscal administration (c) government accounting (b) budgetary accounting (d) obligation accounting 48.It is applied in the preparation of the national budget where the total estimated revenue must be more than estimated expenditures. (a) balanced budget (c) special budget (b) supplemental budget (d) performance budget 49.Which government body prepares the annual financial statements of the national government, local government agencies and governmentowned or controlled corporations? (a)Commission on Audit (b) Department of Budget and Management (c) Bureau of Treasury (d) Chief Accountant of each government agency 50.Which government body keeps the general account of government, promulgates accounting rules and regulation, and submits to the President and Congress an annual financial report of the government? (a)Commission on Audit (b) Department of Budget and Management (c) Bureau of Treasury (d) Department of Finance 51.It is the implementation of the national budget by the different departments and release of allotments. (a) budget preparation (c) budget execution (b) budget authorization (d) budget accountability 52.This is a sum of money or other government resources set aside for the purpose of carrying out specific activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations, and constitute an independent fiscal and accounting entity. (a) cash disbursement ceiling (c) fund (b) appropriations (d) budget 53. Which is incorrect concerning government accounting? (a)Government accounting adopts either cash or accrual basis of accounting. (b) Depreciation is not taken up regularly in government accounting. (c) In government accounting, errors are corrected by negative entries. (d) A corollary entry arises form the operation of obligation accounting in connection with, among others, inventories, supplies and materials, fixed assets and long-term investments. 54.In government accounting, it is not correct: (a) to regularly take up depreciation. (b)to adopt a combination of the cash basis and accrual basis. (c) to correct a debit error by a debit entry but in the negative. (d) to emphasize on correctness, so reports are “certified correct”. 55.No money shall be paid out of the National Treasury except in pursuance of an appropriation law. This explicitly describes what salient feature of government accounting? (a) fund accounting (c) obligation accounting (b) budgetary accounting (d) treasury disbursement coding system 56.Who may contract or guarantee foreign loans on behalf of the Republic of the Philippines with the prior concurrence of the Monetary Board and subject to such limitations as may be provided by law? (a)President of the Republic of the Philippines (b) President of the Senate (c) Speaker of the House of Representatives (d) Chief Justice of the Supreme Court 57.Which prepares the annual financial report of the government? (a) Commission on Audit (c) Bureau of Treasury (b) Department of Budget and Management (d) All of the above 58.No money shall be paid out of the National Treasury except in pursuance of: (a)appropriation (c) obligation (b) allotment (d) special executive order 59.It is the government control mechanism which provides for the maximum amount which an agency can commit the resources of the government. (a) fund accounting (c) budgetary accounting (b) obligation accounting (d) accounting system 60.Which is responsible for the design, preparation and approval of accounting systems of government agencies? (a) Department of Budget and Management (c) Commission on Audit (b) Bureau of Treasury (d) Government agency 61.It is the authorization from the Department of Budget and Management to any agency to incur obligation up to a specified amount that must be within the legislative appropriation. (a) obligation (c) allotment (b) appropriation (d) fund release 62. The review and approval of the national budget by the Congress of the Philippines and the formulation of an appropriate bill. (a) authorization (c) execution (b) preparation (d) accountability 63.One of the following is not considered government income: (a) proceeds from loans and borrowings (b)government buildings (c) grants and aids received from foreign governments (d) taxes 64.This financial statement is submitted by government accounting to the Commission on Audit. It shows the excess (deficit) of income over expenditures for the fiscal period then ended. (a) statement of changes in financial position (b) preliminary trial balance (c)statement of operations (d) final trial balance 65.Which is responsible for the design, preparation and approval of accounting systems of government agencies? (a)Department of Budget and Management (b) Commission on Audit (c) Bureau of Treasury (d) The government agency concerned 66.Financial plan for the general expenditures of the government agencies. (a) special budget (c) supplemental budget (b) deficiency budget (d) general budget 67.What are the rules on the use of government funds? (a) no obligations shall exceed allotment (c) no allotment shall exceed appropriation (b) no liquidation shall exceed obligation (d) all of these 68.Congressional authorization in the form of a law to make payments out of the public treasury for specific purposes after compliance with certain conditions. (a)appropriation (c) budgeting (b) allotment (d) obligation 69.State accounting and accounting for business enterprises are different from each other in which of the following aspects? I. Basis of accounting II. Establishing and observance of internal control system III. Objective (a) I and II only (b) III and IV only(c) I, II and IV (d) I, II, III, IV 70.Which is false concerning constitutional provisions related to government budgeting? (a) No law shall be passed authorizing any transfer of appropriation. (b)All money collected or any tax levied for a special purpose may be paid out for any public purpose. (c) Discretionary funds appropriated for particular officials shall be distributed only for public purposes. (d) No money shall be appropriated for any sect, church or denomination. 71. A feature of government accounting that provides uniform accounting for incurring and liquidating obligations. The books used in this phase of accounting are the general journal and analysis of obligations, the journal of disbursements by disbursing officers, the journal of warrants issued and the journal of checks issued. (a)obligation accounting system (c) budgetary system (b) advice of allotment (d) obligation incurred 72.This consists of money and resources of the local government which are available for the payment of expenditures, obligations or purposes not specifically declared by law as accruing and chargeable to, or payable from, any other fund. (a) general fund (c) special education fund (b) trust fund (d) depository fund 73.What is the role of the Bureau of Treasury in relation to government accounting responsibility? (a)to receive and keep national funds and manage or control disbursements thereof (b) to design, prepare, and approve the accounting systems of government agencies (c) to keep the general accounts of the national government (d) to prepare the annual financial report of the national government, its instrumentalities and government-owned or controlled corporations 74.What is not an accounting responsibility of department agencies? (a) to maintain and keep current accounts of the agency (b) to advise on the financial status of appropriations and allotments (c) to develop and conduct procedures designed to meet the needs of management (d)to prepare the annual financial report of the national government, its instrumentalities and government-owned or controlled corporations 75.It represents all funds received by the government from taxes, grants, aids and borrowings. (a)government income (c) cash fund (b) government revenue (d) borrowings 76.An authorization by the Department of Budget and Management to the head of a government agency to incur obligations within a specified amount pursuant to an appropriation. (a) continuing operations (c) allotment (b) current operating expenditures (d) obligation 77.In government accounting, the control accounts for revenue and expenditures are found in: (a)the budget and operations account (b) both the balance sheet and budget and operations account (c) national clearing accounts (d) balance sheet accounts 78.One of the following is not considered government income. (a) proceeds from loans and borrowings (b)government buildings (c) grants and aids received from foreign government (d) taxes 79.Expenditures in the government are broadly classified into: (a)current operating expenditures and capital outlays (b) obligations incurred and obligations liquidation (c) capital outlays only (d) current operating expenditures only 80.He is principally responsible for the fiscal administration of the local government. (a)local chief executive (c) provincial treasurer (b) municipal accountant (d) commission on audit 81.This financial statement is submitted by government accounting to Commission on Audit. It shows the excess (deficit) of income over expenditures for the fiscal period then ended. (a) statement of changes in financial position (b) preliminary trial balance (c)statement of operations (d) final trial balance 82.Which is incorrect concerning characteristics of government accounting? (a) The primary emphasis on government accounting is receipt and disposition of government funds and property. (b) Common stock and other capital accounts do not exist in government accounting. (c) State accounting must conform with specific laws, rules and regulations. (d)Government accounting deals only with the financial management of the national government. 83.Government accounting and commercial accounting are similar in the following, except: (a) Double entry basis (c) Periodic financial reports and statements (b) Books of original entry (d) Basis of accounting 84.What are the books of accounts in the government? (a) books of COA (b) books of COA and books of treasury (c) books of COA and books of agency (d)books of COA, books of treasury and books of agency 85.Which is incorrect concerning government accounting? (a) Laws, rules and regulations guide the accounting procedure for government accounting. (b) Depreciation is taken up regularly in government accounting. (c) The use of corollary entry is not adopted. (d)In government accounting, emphasis is on fair presentation, so that reports are stated as “opinion”. 86.The objectives of government accounting include (choose the incorrect one): (a) to report on the financial position and results of operations of government agencies (b) to provide for control of the acts of public bodies and offices in the receipt, disposition, and utilization of funds and property (c) to provide information concerning past and present operations and to provide a guidance for future operations (d)to present fairly the financial position, performance and cash flows of government-owned corporations 87.It is the system of prescribing the procedures for recording appropriations, allotments and obligations. (a) fund accounting (c) obligation accounting (b)budgetary accounting (d) government auditing 88.The main concern is availability and use of funds for public services. (a) Commission on Audit (c) National Treasury (b) Department of Finance (d) National Budget System 89.Which department prepares the national budget which serves as the basis of the general appropriation law? (a)Executive department (c) Judiciary department (b) Legislative department (d) Each government agency 90.It is a statement of estimated receipts and estimated expenses of the government which serves as basis for a general appropriation bill. (a)National government budget (c) Statement of financial position (b) Local government budget (d) Statement of operations 91.It denotes the responsibility to others that one or more persons have for their actions and behaviors. (a) preparation (c) authorization (b)accountability (d) execution 92.Budget accountability includes (choose the incorrect one): (a) safeguarding government resources (b) adherence to legal requirements, administrative policies and regulations, and efficiency and economy in operations (c) results of government programs and activities are reflected in accomplishments, benefits and effectiveness (d)payment for misappropriated amount 93.Cash and other resources of the government which are available for any purpose and which are not by law or contractual agreement specifically designation to another fund. (a)general fund (c) trust or fiduciary fund (b) special fund (d) depository fund 94.Which is not charged with the government accounting responsibility? (a) Commission on Audit (c) Bureau of Treasury (b) Department of Budget and Management (d) Legislative Department 95.Which is an ordinary income? (a)Tax (c) Repayment of advances (b) Grant or aid from foreign country (d) Loan or borrowing 96.It is an appropriation for incurring obligations only during a specified fiscal year usually one year. (a)annual appropriation (c) multi-year appropriation (b) continuing appropriation (d) no-year appropriation 97.It is an appropriation which does not require periodic legislative action and referred to as “automatic appropriation”. (a)standing appropriation (c) supplemental appropriation (b) special appropriation (d) contingent appropriation 98.It is an appropriation to cover deficit or overdraft incurred over the amount originally authorized. (a)deficiency appropriation (c) indefinite appropriation (b) definite appropriation (d) interim appropriation 99.It is an amount committed to be paid by the government arising from an act of a duly authorized administrative officer and which binds the government to the immediate and eventual payment of money. (a)obligation (c) allotment (b) appropriation (d) commitment 100. The services, products, or benefits accruing to the public are known in the budget process as: (a)expected results (c) project (b) program (d) resources 101. The functions and activities necessary for the performance of a major purpose for which a government entity is established. (a) program (c) resources (b) project (d) internal control 102. These are the appropriations for the purchase of goods and services the benefits of which extend beyond the fiscal year and which add to the assets of the government. (a)capital outlays (c) obligations incurred (b) current operating expenditures (d) obligations liquidated 103. It is a list of ledger accounts prescribed by COA for use of the national government, local government and government-owned or controlled corporations except financial institutions. (a)standard government chart of accounts (c) balance sheet (b) chart of accounts (d) statement of operations 104. These are the subsidiary ledger accounts showing the details of income and expenditures. (a) balance sheet accounts (c) subsidiary ledger accounts (b) budget and operation accounts (d) statement of operations accounts 105. It is the trial balance prepared after the adjusting and closing entries have been posted. Preliminary Final Preliminary Final (a) Yes Yes (c) No Yes (b) Yes No (d) No No 106. It is the financial statement prepared directly from the final trial balance. Statement of Balance Statement of Balance operations sheet operations sheet (a) Yes No (c) Yes Yes (b) No Yes (d) NoNo 107. Which is not a fundamental principle of government fiscal operations? (a) Fiscal responsibility shall, to a greater extent, be shared by all those exercising authority over financial affairs, transactions, and operations of the government agency. (b) Claims against government funds shall be supported with complete documentation. (c) All laws and regulations applicable to financial transactions shall be faithfully adhered to. (d)Generally accepted accounting principles must be observed in recording government financial transactions. 108. Which is not a characteristic of the local government accounting system? (a) The fundamental principles of government fiscal operations governing the national government are also applicable to the local government. (b)The local government is not required to formulate its budget for the fiscal year. (c) The local government follows the standard government chart of accounts. (d) The fundamental accounting principles and procedures observed by the local government do not differ from those adopted by the national government. 109. The following are the basic features and policies of the new government accounting systems, except: (a) A modified accrual basis of accounting shall be used except for transactions where accrual basis is impractical or when other methods are required by law. (b) The one-fund concept shall be adopted. Separate fund accounting shall be done only when specifically required by law or by a donor agency or when otherwise necessitated by circumstances subject to the approval of the Commission. (c) Special accounts in the General Fund complete with subsidiary ledgers shall be maintained for public utilities, contributions for specific purposes, development projects funded, and such other special accounts which may be created by law or ordinance. (d)A new chart of accounts and coding structure with a twodigit account numbering system shall be adopted. 110. What are the books of accounts maintained by both national and local agencies? National Local National Local (a)Journal & Ledger Journal & Ledger (c) Journal Journal (b) Journal Ledger (d) Ledger Journal 111. What are the set of financial statements to be prepared by the National Agencies? (a) (b) (c) (d) Balance Sheet Yes Yes Yes No Statement of Gov Equity Yes No No Yes Stat of Income & Expenses Yes Yes Yes No Statement of Cash Flows Yes Yes No No Notes to Financial Statements Yes Yes Yes Yes 112. What are the set of financial statements to be prepared by the Local Agencies? (a) (b) (c) (d) Balance Sheet Yes Yes Yes No State of Government Equity Yes No No Yes State of Income & Expenses Yes Yes Yes No State of Cash Flows Yes Yes No No Notes to Financial State Yes Yes Yes Yes 113. The following are the basic features and policies of the new government accounting systems, except: (a) The receipt of Notice of Cash Allocation shall be recorded in the books as debit to account “Cash-National Treasury, Modified Disbursement Systems (MDS)” and credit to account “Subsidy Income from National Government”. (b) Obligation accounting modified to simplify procedures in the incurrence and liquidation of obligations and the recording of the budgetary accounts (allotments and obligations incurred and liquidated). (c)Cost of ending inventory of supplies and materials shall be computed using the weighted average method. (d) Supplies and materials purchased for inventory purpose shall be recorded using the perpetual inventory system. 114. The following are the basic features and policies of the new government accounting systems as to the treatment of depreciation, except: (a) The straight line method of depreciation shall be used. (b)Depreciation shall start on the first month during the purchase of property, plant and equipment, and residual value equivalent to 10% of the purchase cost shall be set up. (c) Public infrastructures/ reforestation projects as well as serviceable assets that are no longer being used shall not be charged any depreciation. (d) Serviceable assets no longer being used shall be reclassified to “Other Assets” account and shall not be subject to depreciation. 115. The following are the basic features and policies of the new government accounting systems, except: (a) Whenever practical and appropriate, interest income and/ or expense shall be accrued and recognized in the books of accounts. (b) All borrowings and loans incurred shall be recorded to the appropriate liability accounts. (c)The use of corollary and negative journal entries shall be continued. (d) The petty cash fund shall not be used to purchase regular inventory/ items for stock. 116. What registry shall be maintained by the Department of Budget and Management for each department of the National Government to control approved appropriations and allotments released? (a) Registry of Notice of Cash Allocation and Replenishments (b) Registry of Allotments and Obligations – Capital Outlay (c)Registry of Appropriations and Allotments (d) Registry of Allotments and Notice of Cash Allocation Issued 117. What registry shall be maintained by the Bureau of Treasury to record the Notice of Cash Allocation releases and the bank replenishments made to cover checks issued by agencies? (a)Registry of Notice of Cash Allocation and Replenishments (b) Registry of Allotments and Obligations – Capital Outlay (c) Registry of Appropriations and Allotments (d) Registry of Allotments and Notice of Cash Allocation Issued 118. What registry shall be maintained by the Department of Budget and Management to control the funding of allotments? (a) Registry of Notice of Cash Allocation and Replenishments (b) Registry of Allotments and Obligations – Capital Outlay (c) Registry of Appropriations and Allotments (d) Registry of Allotments and Notice of Cash Allocation Issued 119. The objectives NGAS include all of the following, except a. To simplify government accounting and its eventual computerization b. To adopt a system that is conformity with Philippine Financial Reporting Standards (PFRS) c. To keep close tabs on erring officers that misappropriate government funds d. To generate periodic and relevant financial reports for better monitoring of performance 120. It is the government body that keeps the general accounts of the government and prepares the annual financial statement of the national government, local government agencies and governmentowned or controlled operations (GOCCs)? a. Commission on Audit c. Department of Budget and Management b. Bureau of Treasury d. Department of Finance 121. What are the components of the financial statements (FS) under NGAS? a. Balance sheet, statement of income and expenses and notes to the FS b. Balance sheet, statement of income and expenses and cash flow statement c. Balance sheet, statement of income and expenses and statement of government equity d. Balance sheet, statement of income and expenses, cash flow statement, statement of government equity and notes to the FS 122. It is a system of prescribing the procedures for recording appropriations, allotments and obligations. a. Fund accounting c. Obligation accounting b. Budgetary accounting d. Treasury disbursement coding system 123. It is an authorization made by law or other legislative enactment, directing payments of goods and services out government funds under specified condition or for specific purposes. a. Allotment c. Appropriation b. Obligation d. Malversation 124. It is the allotment by the Central office to its Regional office. a. Regular allotment c. Ordinary Allotment b. Suballotment d. Secondary Allotment 125. It refers to the commitment by a government agency arising from an act of a duly authorized official that binds the government to the immediate or eventual payments of a sum of money. a. Allotment c. Appropriation b. Obligation d. Malversation 126. It is an authorization issued by the DBM to government agencies to withdraw cash from the National Treasury through the issuance of Modified Disbursement System Checks. a. Allotment c. Appropriation b. Obligation d. Notice of Cash Allocation 127. The following are the system followed in the NGAS, except a. Commercial accounting c. Responsibility accounting b. Double-entry bookkeeping d. Fund accounting 128. Which is not a basic feature of NGAS? a. One-fund concept c. Three-digit account number system b. Two-column trial balance d. Four-digit responsibility account coding structure 129. Which is not a basic feature of NGAS? a. Straight-line depreciation c. Corollary and negative (red) entries b. Allowance for doubtful accounts d. Perpetual inventory system 130. This serves as the basis for recording transactions in the general journal. a. Journal Entry Voucher (JEV) c. Government bidding files b. Source documents d. Government contractor form 131. Which of the following is not a Regular Agency Book? a. General journal c. Cash Journal b. General ledger d. Check disbursements journal 132. Under NGAS, supplies and materials purchased for inventory purposes are recorded using a. First-in, first-out(FIFO) c. Weighted average b. Last-in, first-out (LIFO) d. Moving average 133. Once a government agency receives Notice of Cash Allocation (NCA), it shall debit “ Cash-National Treasury, Modified Disbursement System” and credit a. NCA- Local Government c. Subsidy Income- Local Government b. NCA- National Government d. Subsidy Income- National Government 134. Petty cash fund being maintained by government agencies shall be maintained under a. Fluctuating fund system c. Either of these b. Imprest system d. Neither of these 135. Under NGAS, the standard residual value of depreciable assets is equal to a. 10% of cost c. P 1,000 b. Zero d. P 5,000 136. It represents all funds received by the government from taxes, grants, aids and subsidies. a. Government income c. Cash Fund b. Government surplus d. Borrowing 137. What are the two major classification of government income? a. National and Local income c. External and Internal trade b. General and Specific income d. Any of these 138. Specific income accounts of the government include all of the following, except a. Taxes imposed on income c. Taxes on international trade b. Taxes imposed on properties d. Grants and donations 139. Which is not a major classification of government expenses? a. Personal Services c. Selling and administrative expenses b. Financial expenses d. Maintenance & other operating expenses 140. Personal services in government entities would normally include a. Advertising, rent, insurance and gasoline b. Salaries, bonuses and allowances c. Travels, training, seminar and telephone d. Bank charges, interest and foreign currency exchange losses 141. These accounts are closed to the government equity account at the end of the period. a. Balance sheet accounts c. Guarantee deposit b. Intermediate accounts d. Allowance for doubtful accounts 142. A government agency shall maintain which of the following registries for allotments and obligations? a.Registry of Allotments and Obligation- Personal Services (RAOPS) b. Registry of Allotments and Obligation-Maintenance & Other Operating Expenses (RAOMO) & Registry of Allotments and Obligation- Financial Expense (RAOFE) c. Registry of Allotments and Obligation-Capital Outlay (RAOCO) d. All of the choices 143. In Controlling and monitoring the appropriations and allotment, DBM shall maintain the following registries, except a. Registry of Appropriation & Allotment (RAPAL) b. Registry of Special Purpose Fund Appropriation (RESPFA) c. Registry of Allotments & NCA (RANCA) d. Registry of Notice of Cash Allocation and Replenishments (RENREP) 144. This consists of cash and resources of the government that are available for any purpose. a. General fund c. Trust fund b. Special fund d. Depository fund 145. Fund administered by government under a fiduciary capacity is referred to as a. General fund c. Trust fund b. Special fund d. Depository fund 146. Which is (are) a special purpose fund created as required by law by a donor agency? a. Miscellaneous Personal Fund c. Organization Adjustment Fund b. Calamity Fund d. All of the choices 147. Which is not a local government fund? a. General fund c. Special education fund b. Infrastructure fund d. Pork barrel fund 148. A local government fund that constitutes the annual contribution from city or municipality in the amounts approved by law for each barrio which is spent solely for community development projects. a. Infrastructure fund c. Trust fund b. Special education fund d. Barrio development fund 149. Disbursement of local funds must be approved by a. Division head c. Accountant b. Local administrator d. Local chief executive