BCLTE Reviewer |1
BOOK ONE: FISCAL ORGANIZATION OF  a. 100 square kilometers
LOCAL GOVERNMENTS AND THE LOCAL
TREASURER
#1 CHAPTER 1 FISCAL OGANIZATION OF
LOCAL GOVERNMENTS
1. It is a body politic and corporate endowed
with powers to be exercised by it in conformity
with law.
 a. Government
 b. Local Government Unit
 c. Province
 d. City
 e. Barangay
2. The common requirements for creation of a
local government unit or its conversion from
one level to another shall be based on the
following:
 a. Sufficient Income
 b. Population within the territorial jurisdiction
 c. Contiguous Land Area
 d. All of the above
 e. None of the above
3. The determination of compliance to the
common requirements for creation of an LGU
or its conversion shall be attested to by the
following except:
 a. Department of Finance
 b. National Statistics Office
 c. Provincial Capitol
 d. Lands Management Bureau
 e. Department of Environment and National
Resources
4. The income classification of local
government units resulting from division and
merger shall be updated to reflect the changes
in their financial position.
 a. Within 6 months from the effectivity of R. A. No.
7160
 b. Within a year from the effectivity of R. A. No.
7160
 c. Within 3 years from the effectivity of R. A. No.
7160
 d. Within 5 years the effectivity of R. A. No. 7160
 e. None of the above
5. A province may be created by an Act of
Congress and subject to approval by a
majority of the votes cast in a plebiscite to be
conducted by the COMELEC in the local
government unit or units directly affected.
From the effectivity of said Act, the plebiscite
shall be held within:
 a. 30 days
 b. 60 days
 c. 120 days
 d. One year
 e. None of the above
6. A contiguous territory as certified by the
Lands Management Bureau to comply with the
creation of a province shall be at least:
 b. 2,000 square kilometers
 c. 10,000 square kilometers
 d. 50,000 square kilometers
 e. None of the above
7. A province may be created if it has an
Average Annual Income for the immediately
preceding 2 consecutive years based on 1991
constant prices, as certified by the Department
of Finance, of not less than:
 a. Php 2,500,000.00
 b. Php 20,000,000.00
 c. Php 50,000,000.00
 d. Php 100,000,000.00
 e. Php 250,000,000.00
8. The minimum population as certified by the
National Statistics Office to comply with the
requirement for the creation of a province shall
be:
 a. 25,000 inhabitants
 b. 100,000 inhabitants
 c. 150,000 inhabitants
 d. 250,000 inhabitants
 e. 500,000 inhabitants
9. A municipality or a cluster of barangays may
be converted into a component city if it has a
locally generated Average Annual Income for
the last 2 consecutive years based on 2000
constant prices, as certified by Department of
Finance, of a at least:
 a. Php 2,500,000.00
 b. Php 20,000,000.00
 c. Php 50,000,000.00
 d. Php 100,000,000.00
 e. Php 250,000,000.00
10. The minimum population as certified by the
National Statistics Office to comply with the
requirement for the creation of a city shall be:
 a. 25,000 inhabitants
 b. 100,000 inhabitants
 c. 150,000 inhabitants
 d. 250,000 inhabitants
 e. 500,000 inhabitants
11. A contiguous territory as certified by the
Lands Management Bureau to comply with the
creation of a city shall be at least:
 a. 100 square kilometers
 b. 2,000 square kilometers
 c. 10,000 square kilometers
 d. 50,000 square kilometers
 e. None of the above
12. A classification based on the minimum
population of 200,000 inhabitants and Annual
Income of at least Php 50,000,000.00.
 a. Barangay
 b. Municipality
 c. Province
 d. Highly Urbanized Cities
 e. Component cities of the province
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13. A municipality may be created if it has an

Average Annual Income for the last 2 3. The plantilla of personnel in the local
consecutive years based on 1991 constant government unit concerned in relation to the
prices, as certified by the Department of position of Local Treasurer should show the
Finance, of not less than: following information except:
 a. Php 2,500,000.00  a. Designation of Position
 b. Php 20,000,000.00  b. Appropriation or Budget Item Number
 c. Php 50,000,000.00  c. Range/Salary Grade of the Position
 d. Php 100,000,000.00  d. Documents establishing compliance to the
 e. Php 250,000,000.00 prescribed requirements
 e. Authorized and Actual Salary per annum
14. The minimum population as certified by the
National Statistics Office to comply with the 4. The delegation of the Appointing Authority
requirement for the creation of a municipality over Provincial, City and Municipal Treasurers
shall be: and their Assistants may be given by the
 a. 25,000 inhabitants Secretary of Finance to:
 b. 100,000 inhabitants  a. BLGF Executive Director
 c. 150,000 inhabitants  b. Local Treasurer
 d. 250,000 inhabitants  c. Provincial Governor
 e. 500,000 inhabitants  d. Department of Budget and Management
 e. Local Chief Executive
15. The creation, division or abolition of
alteration of boundaries of provinces, cities, 5. Requests for relief, transfer, or detail of
municipalities, or barangay within ARMM shall Treasurers and Assistant Treasurers shall be
be determined and enacted by: acted upon only for justificable reasons and
 a. Act of Congress after compliance with the requisites of due
 b. Province process comprising with the following except:
 c. Sanggunian  a. Treasurer consents to the action taken
 d. Local Government Unit  b. Completion of the final audit finding of cash
 e. Regional Assembly shortage and properly validated
 c. Termination of the formal investigation
 d. Treasurer has been formally charged with a
grave offence
ANSWERS  e. 90 day preventive suspension has expired
1. b | 2. d | 3. c | 4. a | 5. c | 6. b | 7. b | 8.
d | 9. d | 10. c | 11. a | 12. d | 13. a | 14. a | 6. Unless sooner revoked, the designation of
15. e the OIC/ICO of Local Treasury Offices and
Acting Assistant Provincial/City/Municipal
Treasurers shall be a period of:
#2 CHAPTER 2: APPOINTMENT,
 a. 3 months
QUALIFICATIONS, POWERS AND FUNCTIONS
 b. 6 months
OF THE LOCAL TREASURER, THE ASSISTANT  c. 1 year
TREASURER, AND THE BARANGAY  d. 3 years
TREASURER  e. 6 years

1. The number of ranking eligible 7. The designation, conditioned upon a

recommendees of the governor or mayor, as satisfactory performance and in the absence of
the case may be, subject to civil service law, any derogatory report and/or adverse
rules and regulations from which the Secretary information against the designate, can be
of Finance shall appoint a Local Treasurer. extended only:
 a. 2  a. Once
 b. 3  b. Twice
 c. 4  c. Thrice
 d. 5  d. Upon recommendation by the Local Chief
 e. None of the above Executive
2. The following are some of the requirements  e. None of the above
for the appointment of a Local Treasurer
except: 8. Designations and extensions thereof shall
 a. A resident of the local government unit be processed by the Regional Office within:
concerned  a. Within 3 days before the expected temporary or
 b. A holder of a college degree permanent vacancy
 c. A Certified Public Accountant  b. Within 5 days before the expected temporary or
 d. A first grade civil service eligible or its permanent vacancy
equivalent  c. Within 10 days before the expected temporary
 e. Years of experience in treasury or accounting or permanent vacancy
service

 d. Within 15 days before the expected temporary
or permanent vacancy
 e. None of the above
9. Submissions by the Regional Office for
designations and extensions thereof shall be
confirmed within:
 a. 10 days from the issuance of the Order
 b. 15 days from the issuance of the Order
 c. 30 days from the issuance of the Order
 d. 45 days from the issuance of the Order
 d. None of the above
10. Submission by the BLGF Regional Director
for designations shall be acted upon by the
Executive Director and Bureau of Local
Government Finance within:
 a. 5 days from receipt
 b. 10 days from receipt
 c. 15 days from receipt
 d. 30 days from receipt
 e. None of the above
11. Designation submitted to the BLGF for
confirmation shall be accompanied by the
following documents except:
 a. Regional Special Personnel Order
 b. Recommendations of the BLGF Regional
Director and the Local Chief Executives concerned
 c. Recommendation of the Provincial/City
Treasurer, when applicable
 d. Updated Personal Data Sheet
 e. None of the above
12. An official or employee designated by
proper authority in a temporary capacity to
discharge the duties and functions of the head
of the Local Treasury Office
(Provincial/City/Municipal) in a caretaker
capacity and with certain limitations of the
powers, authority and prerogatives normally
exercised by the head of the office.
 a. Officer-in-Charge
 b. In-Charge of Office
 c. Local Treasurer
 d. Assistant Local Treasurer
 e. Barangay Treasurer
13. An official or employee designated by
proper authority in a temporary capacity to
discharge fully the powers and responsibilities
of the head of the Local Treasury Office
(Provincial/City or Municipal), with the same
rights and prerogatives of the latter, except the
right to receive the salary appurtenant thereto.
 a. Officer-in-Charge
 b. In-Charge of Office
 c. Local Treasurer
 d. Assistant Local Treasurer
 e. Barangay Treasurer
14. An OIC-Provincial/City/Municipal Treasurer
shall continue to receive his/her salary from
his/her regular station for a period of:
 a. 30 days
 b. 60 days
 c. 90 days
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 d. 120 days
 e. 150 days
15. The Assistant Municipal Treasurer who
automatically assumes as ICO shall notify the
BLGF Regional Director concerned, thru the
Provincial Treasurer, of the absence, sickness,
death of other incapacity of the regular
incumbent and of the date of his/her
assumption in a caretaker capacity within:
 a. 24 hours
 b. 48 hours
 c. 7 days
 d. 15 days
 e. 30 days
16. The following do not meet the requirements
for a person to be appointed Barangay
Treasurer except:
 a. A sangguniang barangay member
 b. A government employee
 c. A relative of the punong barangay within the 4th
civil degree of consanguinity or affinity
 d. Not a Certified Public Accountant
 e. None of the above
17. A Local Treasurer who is reinstated after
having been illegally dismissed is considered
as not having left his office and should be
given comparable compensation at the time of
his reinstatement in an amount not exceeding:
 a. 6 months salary
 b. 1 year salary
 c. 2 years salary
 d. 5 years salary
 e. 10 years salary

18. The approval of application for leave of
Provincial, City and Municipal Treasurers and
Assistant Provincial, City and Municipal
Treasurers where he intends to leave the
country regardless of duration shall be by:
 a. Department of Finance
 b. BLGF Regional Director
 c. Local Chief Executive
 d. Barangay Chairman
 e. BLGF Executive Director
19. Application of vacation leave of Assistant
Provincial/City/Municipal Treasurer for a
period exceeding 15 days shall be approved
by:
 a. Department of Finance
 b. BLGF Regional Director
 c. Local Chief Executive
 d. Barangay Chairman
 e. BLGF Executive Director
20. Provincial/City/Municipal Treasurer and
Assistant Provincial/City/Municipal Treasurer
may avail of maternity or paternity leave which
shall be non-cumulative and non-commutative,
immediately before, during or after the
childbirth or miscarriage of their legitimate
spouse, of not more than:
 a. 3 days
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 b. 5 days  c. September 5 of each year

 c. 7 days  d. December 31 of each year
 d. 10 days  e. None of the above
 e. 14 days
4. The Local Treasurer shall submit certified
statement covering income and expenditures
God Bless! to the LCE on or before:
 a. April 14 of each year
ANSWERS  b. July 15 of each year
1. b | 2. c | 3. d | 4. a | 5. c | 6. b | 7. b | 8.  c. September 5 of each year
d | 9. a | 10. c | 11. e | 12. b | 13. a | 14. c |  d. December 31 of each year
15. a | 16. d | 17. d | 18. a | 19. b |  e. None of the above
20. c
5. The City or Municipal Treasurer, jointly with
the City or Municipal Accountant, shall issue a
certified statement covering actual income on
or before:
#3 CHAPTER 3 ADMINISTRATIVE AND  a. April 14 of each year
TECHNICAL SUPERVISION BY THE BLGF  b. July 15 of each year
 c. September 5 of each year
1. The BLGF Regional Officers shall perform  d. December 31 of each year
the following administrative and technical  e. None of the above
functions involving local treasury operations
except: 6. The Local Treasurer shall be a member of
 a. Supervise and coordinate the conduct of local the following Local Committees and Boards
treasury and assessment operations of provinces, except:
cities and municipalities within the region for the  a. Selection and Promotion Board of the BLGF
proper implementation of laws, decrees, rules, Offices
regulations and administrative issuances of the  b. Local Finance Committee
Department of Finance.  c. Bids and Awards Committee
 b. Coordinate the plans, programs and activities of  d. Local School Boards
local treasury and assessment offices in the  e. Appraisal Committee for purposes of
conduct of tax collection drives and tax information expropriation and purchase of real property
and education campaigns.
 c. Conduct regional training programs, seminars, Chapter 5. Other Roles of the Local Treasurer
workshops and other allied activities for the
improvement of the administrative and technical
skills in the local treasury offices. 7. Specific role of the Local Treasurer in the
 d. See to it that payment of taxes of a business is enactment or amendment of revenue
not avoided through simulation of the retirement ordinance of Local Government Units include
thereof and recommend to the Mayor for the the following except:
disapproval of the application for the termination or  a. Update on the tax information system
retirement of the business.  b. Advice on the adequacy of taxes, fees and
 e. Undertake measures that would lead to efficient charges and continued relevance of certain
administration of local treasury operations. impositions
 c. Update on the adjustment of fees and charges
Chapter 4. The Roles and Responsibilities of  d. Dissemination of tax ordinances and revenue
measures
Local Treasurers  e. None of the above
2. The following are the duties and
responsibilities of the Provincial, City, and 8. The Local Government Code of 1991 allows
Municipal Treasurer except: the rates of taxes to be adjusted only once
 a. Collection of Local Revenues every:
 b. Collection of Real Property Tax  a. 3 years
 c. Custody and Requisition of Accountable Forms  b. 5 years
 d. General and Specific Functions  c. 10 years
 e. None of the above  d. 15 years
 e. None of the above
3. The provincial, city or municipal treasurers
or his deputy shall prepare a certified list of all 9. The members of the Bids and Awards
real property tax delinquencies which Committee shall be:
remained uncollected or unpaid for at least one  a. 5-7 members
year in his jurisdictions and submit the same  b. 5-9 members
to the sanggunian concerned on or before:  c. 10-12 members
 a. April 14 of each year  d. 10-15 members
 b. July 15 of each year

 e. Any number
10. It is an inter-agency board created under
the Government Procurement Reform Act or R
A. No. 9184 chaired by the Secretary of DBM.
 a. Bids and Awards Committee
 b. Local School Boards
 c. Local Finance Committee
 d. Government Procurement Policy Board
 e. Appraisal Committee
11. The keys of the padlocks of the ballot box
upon the termination of the counting of the
votes shall be placed in separate envelopes,
sealed and signed by all members of the board
and delivered by a COMELEC representative to
the following except:
 a. Provincial Treasurer
 b. Provincial Governor
 c. Provincial Fiscal
 d. Provincial Election Supervisor
 e. None of the above
12. The Board of Canvassers must complete
their canvass in the provinces within:
 a. 24 hours
 b. 36 hours
 c. 48 hours
 d. 72 hours
 e. 96 hours
13. The Board of Canvassers must complete
their canvass in the municipalities within:
 a. 24 hours
 b. 36 hours
 c. 48 hours
 d. 72 hours
 e. 96 hours
14. The Board of Canvassers must complete
their canvass in the cities within:
 a. 24 hours
 b. 36 hours
 c. 48 hours
 d. 72 hours
 e. 96 hours
Chapter 6. Bond for Local Treasurers and Other
Accountable Officers of Local Government
Units
15. The procedure for bonding are as follows
except:
 a. Notice to the Bureau of the Treasury
 b. General Form No. 57 (A)
 c. General Form No. 58 (A)
 d. Endorsement to the Bureau of the Treasury
 e. Certification from the Secretary of DBM
16. The Barangay Treasurer shall be bonded
with the Fidelity Fund immediately upon
assumption of office in the amount to be
determined by the Sangguniang Barangay but
not to exceed:
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 a. Php 5 million
 b. Php 1 million
 c. Php 100,000.00
 d. Php 50,000.00
 e. Php 10,000.00
17. At what percentage of their total value
should the corresponding bond for
Accountable Forms involving Cash Tickets,
Cattle Registration Certificates, and Marriage
Certificates be?
 a. 5%
 b. 10%
 c. 15%
 d. 20%
 e. 25%
18. An official/employee who has both money
and property accountability, shall be bonded
only once to cover both accountabilities, but
the amount of the bond shall be in accordance
with the Schedule of Cash Accountability,
provided however, that the amount of bond
shall not exceed:
 a. Php 5 million
 b. Php 1 million
 c. Php 100,000.00
 d. Php 50,000.00
 e. Php 10,000.00
19. The Fidelity Fund shall not be used for the
following except:
 a. To replace fines imposed on bonded
officials/employees as a result of criminal
conviction for violation of the Revised Penal Code
or any penal law.
 b. To pay for defalcations, shortages and
unrelieved accountability after all possible means
of recovery of the amount from the accountable
official or employee have been exhausted.
 c. To answer the liability of a bonded
official/employee convicted of estafa through
falsification of public documents in his/her capacity
as private individual.
 d. To refund the accountability of a bonded
official/employee found short in accountability but
not removed or relieved of the duties.
 e. None of the above.
20. Approved fidelity bonds are valid:
 a. For 5 years
 b. For 3 years
 c. For 1 year
 d. For 6 months
 e. During the duration of appointment
God bless!
ANSWERS
1. d | 2. e | 3. d | 4. b | 5. c | 6. a | 7. e | 8.
b | 9. a | 10. d | 11. b | 12. d | 13. b | 14. c |
15. e | 16. e 17. b | 18. a | 19. b | 20. c

#4 BOOK 2 RECEIPTS AND COLLECTION OF
LOCAL INCOME, REVENUES AND OTHER
FUND SOURCES
CHAPTER 1 TYPES OF LOCAL INCOME AND
REVENUES COLLECTED BY LGUs
1. It refers to all revenues and receipts
collected or received forming the gross
accretions of funds of the local government
unit.
 a. Taxes
 b. Revenue
 c. Cash collection
 d. Income
 e. Profit
2. It has the power to create its own sources of
revenue and to levy taxes, fees and charges
subject to the provisions of the Local
Government Code of 1991, consistent with the
basic policy of local autonomy.
 a. Province
 b. Local Government Unit
 c. City
 d. Congress
 e. Office of the President
3. The authority of the government to classify
the object of taxation, to be valid, must be
reasonable and this requirement is not deemed
satisfied unless:
 a. It is based upon substantial distinctions which
make the real differences.
 b. These are germane to the purpose of the
legislation or ordinance.
 c. The classification applies, not only to present
conditions, but, also, to future conditions
substantially identical to those of the present.
 d. The classification applies equally to all those
who belong to the same class.
 e. All of the above
4. The following describe what the taxes, fees
and other impositions shall be except:
 a. uniform under all circumstances.
 b. equitable and based as far as possible on the
taxpayer’s ability to pay.
 c. levied and collected only for public purposes.
 d. not unjust, excessive, oppressive, or
confiscatory.
 e. not contrary to law, public policy, national
economic policy, or in restraint of trade.
5. The following are the requirements for a
local ordinance to be valid except:
 a. not contravene the Constitution or any stature.
 b. not be partial or discriminatory.
 c. be general and consistent with public policy.
BCLTE Reviewer |6
 d. neither prohibit nor regulate trade.
 e. None of the above
6. The conduct of public hearings shall be
governed by the following procedure except:
 a. Pre-publication/posting and written notices to
interested/affected parties
 b. Public hearing prior to enactment of the tax
ordinance or revenue measure
 c. Preparation of minutes by the secretary of the
sanggunian
 d. Approval and publication of tax ordinance and
revenue measures
 e. Dissemination of approved copies to interested
parties
7. The local chief executive may veto any
ordinance of the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang
bayan. He/she shall communicate the veto:
 a. Within 15 days in the case of a province
 b. Within 10 days in the case of a city
 c. Within 10 days in the case of a municipality
 d. All of the above
 e. None of the above
8. Approved tax ordinances and revenue
measures shall be published within:
 a. 3 days from approval
 b. 10 days from approval
 c. 15 days from approval
 d. 30 days from approval
 e. 60 days from approval
9. The Sangguniang Panlalawigan shall review
the approved city or municipal ordinances or
resolutions within:
 a. 3 days from approval
 b. 10 days from approval
 c. 15 days from approval
 d. 30 days from approval
 e. 60 days from approval
10. The city or municipal ordinance or
resolution shall be presumed consistent with
law and therefore valid if no action has been
taken by the sangguniang panlalawigan within:
 a. 3 days
 b. 10 days
 c. 15 days
 d. 30 days
 e. 60 days
11. Appeal on the constitutionality or legality of
an ordinance may be made within 30 days to
the Secretary of Justice who shall render a
decision within:
 a. 3 days from receipt of the appeal
 b. 10 days from receipt of the appeal
 c. 15 days from receipt of the appeal
 d. 30 days from receipt of the appeal
 e. 60 days from receipt of the appeal
12. The penalties for violation of tax
ordinances prescribed by the local
government unit:
 BCLTE Reviewer |7

 a. is a fine between Php 1,000.00 – Php 5,000.00  d. 15 working days from filing thereof
 b. is imprisonment from 1 to 6 months  e. None of the above
 c. shall be either or both of the above
 d. shall only be either of the above 3. The barangay may levy reasonable fees and
 e. shall always be both of the above charges for the following except:
 a. On commercial breeding of fighting cocks,
13. The following are some of the taxes, fees cockfights and cockpits
and charges specifically reserved to provinces  b. On business and occupation
except:  c. On places of recreation which charge admission
 a. Professional Tax (Sec. 139, LGC) fees
 b. Tax on Business (Sec. 143, LGC)  d. On billboards, signboards, neon signs, and
 c. Tax on Business of Printing and Publication outdoor advertisements
(Sec. 136, LGC)  e. None of the above
 d. Franchise Tax (Sec. 137, LGC)
 e. Amusement Tax (Sec. 140, LGC) 4. Local government units share from the
income generated by the national government
14. The following are the taxes, fees and from all taxes and revenue sources for the
charges that may be levied by the following except:
municipalities and not otherwise levied by  a. Internal Revenue Allotment (IRA)
provinces except:  b. Tobacco Excise Tax
 a. Community Tax (Sec. 156, LGC)  c. Proceeds from the utilization of national wealth
 b. Fees for Sealing and Licensing of Weights and within their territorial jurisdiction
Measures (Sec. 148, LGC)  d. Special shares from other national taxes,
 c. Fishery Rentals, Fees and Charges (Sec. 149, particularly on ECOZONES and specified portions
LGC) of the Value Added Tax
 d. Tax on Sand, Gravel and Other Quarry  e. None of the above
Resources (Sec. 138, LGC)
 e. Fees and Charges on Business and Occupation 5. It refers to a shortfall of revenues against
(Sec. 236, LGC) disbursements.
 a. Bankruptcy
15. Except the rates of professional and  b. Fiscal Losses
amusement taxes, the rates of taxes that the  c. Budget deficit
city may levy may exceed the maximum rates  d. Variance
allowed for the province or municipality by not  e. Public sector deficit
more than:
 a. 50% 6. The share of all provinces from the total
 b. 40% annual Internal Revenue Allotment (IRA) shall
 c. 30% be at an allocation of:
 d. 20%  a. 20%
 e. 10%  b. 30%
 c. 34%
ANSWERS  d. 23%
1. d | 2. b | 3. e | 4. a | 5. d | 6. e | 7. d | 8.  e. 33%
b | 9. a | 10. d | 11. e | 12. c | 13. b | 14. d |
15. a 7. The share of all municipalities from the total
annual Internal Revenue Allotment (IRA) shall
#5 CHAPTER1 TYPES OF LOCAL INCOME AND be at an allocation of:
REVENUES COLLECTED BY LGUs  a. 20%
1. The rate of tax on stores or retailers with  b. 30%
fixed business establishments with gross  c. 34%
sales or receipts of the preceding calendar  d. 23%
year of Php 50,000.00 or less, in the case of  e. 33%
cities and Php 30,000.00 or less, in the case of
municipalities, shall not exceed: 8. The share of all barangays from the total
 a. 5% on such gross sales or receipts annual Internal Revenue Allotment (IRA) shall
 b. 4% on such gross sales or receipts be at an allocation of:
 c. 3% on such gross sales or receipts  a. 20%
 d. 2% on such gross sales or receipts  b. 30%
 e. 1% on such gross sales or receipts  c. 34%
 d. 23%
2. The application for Barangay clearance for  e. 33%
any business or activity shall be acted upon
within: 9. Every barangay with a population of not less
 a. 24 hours from filing thereof than 100 inhabitants shall be entitled to an
 b. 3 working days from filing thereof Internal Revenue Allotment (IRA) chargeable
 c. 7 working days from filing thereof
 BCLTE Reviewer |8

against the 20% share of the barangay from  d. 10%

the total IRA of not less:  e. 12%
 a. Php 20,000.00
 b. Php 40,000.00 15. Other common sources of LGU revenues
 c. Php 60,000.00 outside taxation, fees and charges, and shares
 d. Php 80,000.00 in national taxes and wealth are the following
 e. Php 100,000.00 except:
 a. Donations
10. The individual shares in Internal Revenue  b. Sale of Fixed Assets
Allotment (IRA) of each LGU shall be  c. Contributions
automatically released direct to the provincial,  d. Sale of Waste Materials
city, municipal, or barangay treasurer, as the  e. Interest Income
case may be, on:
 a. a monthly basis
 b. a quarterly basis
 c. a semi-annual basis ANSWERS
 d. an annual basis 1. e | 2. c | 3. b | 4. e | 5. c | 6. d | 7. c | 8.
 e. None of the above a | 9. d | 10. b | 11. c | 12. e | 13. d | 14. c |
15. a
11. At what minimum percentage of the Internal
Revenue Allotment (IRA) for the year be
mandatory for each LGU to asset aside in its
#6 CHAPTER 2 COLLECTION OF REVENUES
annual budgets as appropriation for local
development projects that are embodied or AND OTHER RECEIPTS
contained in the local development plans? 1. For drawing of checks payable to the LGU,
 a. 5% under no circumstances shall the following
 b. 10% checks be accepted except:
 c. 20%  a. Post-dated or Stale checks
 d. 30%  b. Checks drawn payable to the official title or
 e. None of the above designation of the LCE or Treasurer of the LGU
 c. Indorsed checks
12. It refers to the natural resources situated  d. Checks drawn payable to “Cash”
within the Philippine territorial jurisdiction  e. Checks drawn payable to the name of the Head
including lands of public domain waters, of the LGU or any of its officers
minerals, coal, petroleum, mineral oils,
potential energy forces, gas and oil deposits, 2. Upon receipt of the dishonored check and
forest products, wildlife, flora and fauna, debit memo from the depository bank
fishery and aquatic resources and all quarry concerned, the collecting officer or Local
products. Treasurer shall accomplish the “Notice of
 a. Land resources Dishonor” and sign it in behalf of the local
 b. Sovereignty chief executive within:
 c. Forestry  a. 24 hours
 d. National territory  b. 2 days
 e. National wealth  c. 3 days
 d. 5 days
13. From the gross collection derived by the  e. 7 days
national government from the preceding fiscal
year from the mining taxes, royalties, forestry 3. The local chief executive upon the
and fishery charges, and such other taxes, recommendation of the Local Treasurer, shall
fees, or charges as well as administrative immediately transmit the certified copies of the
charges accruing to the national government, dishonored check, debit memo from the bank
the LGU shall, in addition to the IRA, have a and notice of dishonor to the city or provincial
share of: prosecutor if the drawer of the dishonored
 a. 10% check due to lack or insufficiency of funds fail
 b. 20% to settle his account within:
 c. 30%  a. 24 hours from receipt of the notice of dishonor
 d. 40%  b. 2 days from receipt of the notice of dishonor
 e. None of the above  c. 3 days from receipt of the notice of dishonor
 d. 5 days from receipt of the notice of dishonor
14. In lieu of the national and local taxes,  e. 7 days from receipt of the notice of dishonor
businesses and enterprises in Special
Economic Zones shall pay gross income tax 4. Unless the court shall direct otherwise,
of: pending their redemption, dishonored checks
 a. 1% shall remain in the custody of:
 b. 3%  a. Local Chief Executive
 c. 5%  b. COA Auditor

 c. Local Accountant
 d. Disbursing bank
 e. Local Treasurer
5. The following are Accountable Forms with
money value except:
 a. Checks
 b. Cash Tickets
 c. Certificate of Transfer of Large Cattle
 d. Certificate of Ownership of Large Cattle
 e. Marriage License Certificate
6. Issuance of Accountable Forms to bonded
officers has to be in sufficient quantities based
on their actual needs but not to exceed use of:
 a. 1 month
 b. 3 months
 c. 6 months
 d. 1 year
 e. None of the above
7. All Provincial, City and Municipal Treasurers
shall deposit their funds and maintain deposit
accounts with Land Bank of the Philippines
and Development Bank of the Philippines. By
way of exception, and subject to prior approval
of the Department of Finance, they may
likewise do so with the following except:
 a. Bank of the Philippine Islands
 b. Philippine National Bank
 c. Philippine Postal Savings Bank
 d. Philippine Veterans Bank
 e. Al Amanah Islamic Investment Bank of the
Philippines
8. The Barangay Treasurer shall deposit all
collections with the city or municipal treasury
or in the depository account maintained in the
name of the barangay within:
 a. 1 day after receipt thereof
 b. 2 days after receipt thereof
 c. 3 days after receipt thereof
 d. 5 days after receipt thereof
 e. 7 days after receipt thereof
9. It refers to available cash which the local
government unit can freely invest in
government securities and/or fixed term
deposits with authorized government
depository banks.
 a. Idle funds
 b. Collections
 c. Taxes
 d. Bank deposits
 e. Cash in Treasury
10. The Treasurer shall maintain the following
cashbooks except:
 a. Cashbook – Cash in Treasury
 b. Cashbook – Cash in Bank
 c. Cashbook – Daily Recording
 d. Cashbook – Cash Advances
 e. None of the above
11. It shall be maintained by individual Tellers,
Fields and Market Collectors and other
BCLTE Reviewer |9
authorized personnel receiving collections
outside of the local government office.
 a. The Treasurer’s Cashbook
 b. The Teller’s/Collector’s Cashbook
 c. Certificate of Transactions in the Cashbook
 d. The Liquidating Officer’s Cashbook
 e. None of the above
12. It shall be used by the designated
Liquidating Officer to record all collections
turned over to him by Tellers, Field and Market
Collectors, and remittances to the Local
Treasurer/Cashier.
 a. The Treasurer’s Cashbook
 b. The Teller’s/Collector’s Cashbook
 c. Certificate of Transactions in the Cashbook
 d. The Liquidating Officer’s Cashbook
 e. None of the above
13. The Report of Collections and Deposits
shall be prepared daily by:
 a. Tellers/Collectors
 b. Liquidating Officers
 c. Local Treasurer/Cashier
 d. None of the above
 e. All of the above
Chapter 3. Examination of Books of Accounts
and Pertinent Records of Businessmen by
Local Treasurers
14. The following shall govern the examination
by the Local Treasurer of books of accounts
and pertinent records of businessmen except:
 a. Examination of Books of Accounts and
Pertinent Records of Businessmen
 b. Authority to Conduct Examination or provide the
Written Authority to qualified officers
 c. Deputize the Administrative Officer of the
Sangguniang Panlungsod to examine the books of
accounts of business establishments
 d. Time, Frequency and Certification
 e. Access to the Bureau of Internal Revenue
Records
15. In case the books of accounts and other
records are not available on the first visit,
another appointment with the business
owner/representative, after serving the Letter
of Authority, should be made not later than:
 a. 3 days
 b. 5 days
 c. 7 days
 d. 15 days
 e. 30 days
16. The deputized Examiners shall perform the
following activities except:
 a. Review of pertinent records of the business
establishment to be examined
 b. Review of the working papers, if any, of the
business establishment, if previously examined
 c. Submission to the Owner/President of the
business establishment to be examined the Letter

of Appointment/Authority to conduct the
examination
 d. Acceptance of books of accounts and
documents for verification/examination
 e. Preparation of Bank Reconciliation Statements
17. It shows the comparison between the gross
receipts/sales declared per business permit
application and the gross receipts/sales as
appearing in the sales documents examined.
 a. Letter of Confirmation/Certificate of
Confirmation/Certificate of Examination
 b. Tax Data Working Papers or Tax Data Sheet
 c. Letter of Assessment/Assessment Notice
 d. Tax Data and Assessment Form
 e. None of the above
18. It shows the detailed computation of the
additional assessment for business tax based
on the computed understatement of
sales/receipts declared in the business permit
application, the amount of surcharges and
penalties, the interest on the deficiency tax
assessed, as well as the signatures of the
Examination Team and the Local Treasurer.
 a. Letter of Confirmation/Certificate of
Confirmation/Certificate of Examination
 b. Tax Data Working Papers or Tax Data Sheet
 c. Letter of Assessment/Assessment Notice
 d. Tax Data and Assessment Form
 e. None of the above
19. It shows the amount of tax deficiency
inclusive of penalties, surcharges and interest
resulting from the conduct of the examination.
 a. Letter of Confirmation/Certificate of
Confirmation/Certificate of Examination
 b. Tax Data Working Papers or Tax Data Sheet
 c. Letter of Assessment/Assessment Notice
 d. Tax Data and Assessment Form
 e. None of the above
20. Its issuance signifies the completion of the
examination conducted.
 a. Letter of Confirmation/Certificate of
Confirmation/Certificate of Examination
 b. Tax Data Working Papers or Tax Data Sheet
 c. Letter of Assessment/Assessment Notice
 d. Tax Data and Assessment Form
 e. None of the above
ANSWERS
1. b | 2. c | 3. d | 4. e | 5. a | 6. b | 7. a | 8.
d | 9. a | 10. c | 11. b | 12. d | 13. e | 14. c |
15. a | 16. e | 17. b | 18. d | 19. c | 20. a
BOOK 3 EXPENDITURES AND
DISBURSEMENTS
#7 CHAPTER 1 CONCEPT OF FUNDS
1. The following are the general classification
of funds except:
B C L T E R e v i e w e r | 10
 a. Trust Fund
 b. Mutual Fund
 c. Special Fund
 d. General Fund
 e. None of the above
2. It is defined as a sum of money or other
resources set aside for the purpose of carrying
out specific activities or attaining certain
objectives in accordance with special
regulations, restrictions or limitations, and
constitutes an independent fiscal and
accounting entity.
 a. Government Fund
 b. Special Funds
 c. Local Funds
 d. Fund
 e. Trust Fund
3. It consists of monies 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 (Sec. 308, LGC)
 a. Government Fund
 b. Special Funds
 c. Local Funds
 d. Fund
 e. Trust Fund
4. The General Fund maintains Special
Accounts for the following except:
 a. Development projects funded from the share of
the local government unit concerned in the internal
revenue allotment.
 b. Public utilities and other economic enterprises.
 c. Operation and maintenance of public schools.
 d. Other special accounts which may be created
by law or ordinance.
 e. Loans, interests, bond issues, and other
contributions for specific purposes.
5. It shall consist of private and public monies
which have officially come into the possession
of the local government or of a local
government official as trustee, agent or
administrator, or which have been received as
guaranty for the fulfillment of some obligation.
 a. Trust Funds
 b. Special Funds
 c. Real property tax proceeds
 d. Local Funds
 e. General Funds
6. The Local School Board determines and
approves the allocation of proceeds from the
applicable tax on real property for the
following purposes except:
 a. Educational research
 b. Construction of a school playground
 c. Operation and maintenance of public schools
 d. Purchase of books and periodicals
 e. Construction and repair of school buildings,
facilities and equipment

7. The following are some of the fundamental
principles governing the utilization of Local
Funds except:
 a. Disbursements or disposition of government
funds or property shall invariably bear the approval
of the proper officials.
 b. Disbursements or disposition of government
funds or property shall invariably bear the approval
of the proper officials.
 c. Fiscal responsibility shall be shared by all those
exercising authority over the financial affairs,
transactions, and operations of the local
government units.
 d. Claims against government funds shall be
supported with complete documentation.
 e. Trust Funds in the local treasury shall be paid
out in fulfillment of the purpose for which the trust
was created or the funds received and other
allocations as may be determined by the local
government as necessary.
Chapter 2. Concept of Appropriation, Allotment,
Obligation and Expenditure
8. It refers to an authorization made by
ordinance, directing the payment of goods and
services from local government funds under
specified conditions or for specific purposes.
 a. Savings
 b. Government resolution
 c. Budget
 d. Appropriation
 e. General Fund
9. The following are the general classifications
of appropriations except:
 a. Supplemental Appropriation
 b. Treasury Appropriation
 c. Annual Appropriation
 d. Continuing Appropriation
 e. None of the above
10. This refers to an appropriation available to
support obligations for a specified purpose or
project, such as those for the construction of
physical structures or for the acquisition of
real property or equipment, even when these
obligations are incurred beyond the budget
year.
 a. Supplemental Appropriation
 b. Treasury Appropriation
 c. Annual Appropriation
 d. Continuing Appropriation
 e. None of the above
11. This is one prepared to adjust the
equilibrium of the first approved budget which
has been disturbed by current economic,
political or social conditions, or to provide an
additional amount to the original appropriation
which proved to be inadequate or insufficient
for the particular purpose intended.
 a. Supplemental Appropriation
 b. Treasury Appropriation
B C L T E R e v i e w e r | 11
 c. Annual Appropriation
 d. Continuing Appropriation
 e. None of the above
12. This is an appropriation consisting of
specified amounts for salaries, wages, and
sundry expenses, etc., authorized by the
sanggunian as necessary for the regular
operations of the local government unit during
any given year.
 a. Supplemental Appropriation
 b. Treasury Appropriation
 c. Annual Appropriation
 d. Continuing Appropriation
 e. None of the above
13. It is based on estimated income and
program of expenditures for a given year.
 a. The Local Budget
 b. Allotment
 c. Appropriation
 d. General Fund
 e. Allotment System
14. It is a system of budget control to ensure
that obligations incurred will not exceed
appropriations or authorizations made by
appropriation ordinance, directing the payment
of goods and services from local government
funds under specified conditions or purposes.
 a. The Local Budget
 b. Allotment
 c. Appropriation
 d. General Fund
 e. Allotment System
15. It is an authorization issued by the Local
Chief Executive to a department/office of the
local government unit, which allows it to incur
obligations for specified amounts within its
appropriations.
 a. The Local Budget
 b. Allotment
 c. Appropriation
 d. General Fund
 e. Allotment System
16. This is the yearly overall financial plan of
the local government unit equivalent to its
approved appropriation disaggregated into
components or categories.
 a. Physical Performance Targets
 b. Local Budget Matrix
 c. Obligation
 d. Cash Program
 e. Allotment
17. This reflects the targeted units of work
under each program/activity/project (P/A/P) for
each department/office based on the historical
data of peaks and slumps of activities/tasks
and the peculiar requirements of certain
P/A/Ps.
 a. Physical Performance Targets
 b. Local Budget Matrix
 c. Obligation

 d. Cash Program
 e. Allotment
18. This must be able to facilitate the
management of cash such that it is available
when it is needed for payment of obligations
and at the same time optimizes its utilization.
 a. Physical Performance Targets
 b. Local Budget Matrix
 c. Obligation
 d. Cash Program
 e. Allotment
19. This refers to the amount committed to be
paid by the local government unit for any
lawful act made by an accountable officer for
and in behalf of the local government unit
concerned.
 a. Physical Performance Targets
 b. Local Budget Matrix
 c. Obligation
 d. Cash Program
 e. Allotment
20. The Local Budget Matrix classifies
budgetary items under the following except:
 a. Unprogrammed Appropriation
 b. Revenue Collection
 c. Not-Needing Clearance
 d. Reserve
 e. Later Release
God bless!
ANSWERS
1. b | 2. d | 3. c | 4. d | 5. a | 6. b | 7. e | 8.
d | 9. b | 10. d | 11. a | 12. c | 13. a | 14. e |
15. b | 16. b | 17. a | 18. d | 19. c | 20. b
#8 CHAPTER 2 CONCEPT OF
APPROPRIATION, ALLOTMENT, OBLIGATION
AND EXPENDITURE
1. The following provides for the steps in the
obligation process except:
 a. The sanggunian authorizes the preparation of
an appropriation consisting of specified amounts
for an obligation in accordance with the Annual
Budget.
 b. The Head of the requesting office in the local
government unit shall prepare the Obligation
Request and the Disbursement Voucher.
 c. The Local Budget Officer shall certify as to the
existence of available appropriation that has been
legally made for the purpose and shall maintain
the appropriate Registries of Appropriation,
Allotments and Obligations.
 d. The Local Accountant shall certify the obligation
of allotment and completeness of supporting
documents.
 e. None of the above
B C L T E R e v i e w e r | 12
2. This includes all charges against the fund of
the local government unit for current operating
expenditures, capital outlays and provisions
for retirement of long term obligations.
 a. Current Operating Expenditures
 b. Unnecessary Expenditures
 c. Irregular Expenditures
 d. Government Expenditures
 e. Capital Outlays
3. This refers to appropriations for the
purchase of goods and services for current
consumption or for benefits expected to
terminate within the fiscal year.
 a. Current Operating Expenditures
 b. Unnecessary Expenditures
 c. Irregular Expenditures
 d. Government Expenditures
 e. Capital Outlays
4. This refers to appropriations for the
purchase of goods and services, the benefits
of which extend beyond the fiscal year and
which add to the assets of local government
unit concerned.
 a. Current Operating Expenditures
 b. Unnecessary Expenditures
 c. Irregular Expenditures
 d. Government Expenditures
 e. Capital Outlays
5. This signifies that the expenditure incurred
does not adhere to established rules,
regulations, procedural guidelines, policies,
principles or practices that have gained
recognition in law.
 a. Unnecessary Expenditures
 b. Extravagant Expenditures
 c. Excessive Expenditures
 d. Irregular Expenditures
 e. Unconscionable Expenditures
6. This pertains to expenditures which could
not pass the test of prudence or the obligation
of a good father of a family, thereby not
responsive to the exigencies of the service.
 a. Unnecessary Expenditures
 b. Extravagant Expenditures
 c. Excessive Expenditures
 d. Irregular Expenditures
 e. Unconscionable Expenditures
7. It signifies expenses without knowledge or
sense of what is right, reasonable and just and
not guided or restrained by conscience.
 a. Unnecessary Expenditures
 b. Extravagant Expenditures
 c. Excessive Expenditures
 d. Irregular Expenditures
 e. Unconscionable Expenditures
8. This signifies unreasonable expense or
expenses incurred at an immoderate quantity
or exorbitant price.
 a. Unnecessary Expenditures
 b. Extravagant Expenditures

 c. Excessive Expenditures
 d. Irregular Expenditures
 e. Unconscionable Expenditures
9. This signifies those incurred without
restraint, judiciousness and economy. These
expenditures exceed the bounds of propriety
and are immoderate, prodigal, lavish,
luxurious, wasteful, grossly excessive, and
injudicious.
 a. Unnecessary Expenditures
 b. Extravagant Expenditures
 c. Excessive Expenditures
 d. Irregular Expenditures
 e. Unconscionable Expenditures
10. The following are considered irregular
expenditures except:
 a. Office equipment and property without the
proper identification or inventory markings.
 b. Reimbursement of expenses incurred by
persons other than authorized representatives of
the LGU for attending conferences, meetings and
other official functions.
 c. Payment for emergency purchase, where there
is no emergency.
 d. Payments made on the basis of split
requisitions, purchase orders, vouchers or checks
even with approval by proper authority of the LGU.
 e. Bringing home government motor vehicles after
office hours by officials to whom these are
assigned.
11. The following expenditures are considered
unnecessary except:
 a. Grant of overtime pay for work that is not urgent
in nature as to require completion within a
specified time or that can be undertaken during
regular office hours.
 b. Expenses for advertisement of anniversaries,
etc., in newspapers, television or radio merely for
publicity or propaganda purposes.
 c. Use of air conditioners when not needed, or
even during the absence of the official in whose
room the air conditioner is installed.
 d. Use of table lamps while working in the office
where the room is adequately illuminated from the
ceiling lights.
 e. None of the above.
12. Excessive Expenditures signify
unreasonable expense or expenses incurred at
an immoderate quantity or exorbitant price.
The price is excessive if it is more than what
percentage of allowable price variance
between than the price for the item bought and
the price for the same item per canvass of the
auditor.
 a. 33
 b. 10
 c. 20
 d. 15
 e. 50
13. To determine if the price is excessive, the
following factors may be considered except:
B C L T E R e v i e w e r | 13
 a. Supply and Demand Forces in the Market
 b. Government Price Quotations
 c. Special Discount for Bulk Orders
 d. Warranty of Products or Special Features
 e. Brand of Products
14. The following expenditures are considered
excessive except:
 a. Payment for maintenance of government
vehicles and replacement of parts beyond their life
cycle.
 b. Overpricing of purchases characterized by
grossly exaggerated or inflated quotations, in
excess of the current and prevailing market price
by a 10% variance from the purchased item.
 c. Payment for repair of government equipment at
a cost exceeding 30% of the current market price
of the same or similar equipment.
 d. Expenditures for supplies and materials in
quantities beyond that required and needed by the
LGU for a determinable period, resulting in
overstocking.
 e. None of the above.
15. The following expenditures are considered
extravagant except:
 a. Purchase of luxurious and expensive office
furnishings for office buildings.
 b. Purchase of wines, liquors, cigars and
cigarettes.
 c. Installation of highly sophisticated outdoor
signs, billboards and neon signs advertising the
office.
 d. Purchase of expensive cars for the use of the
Justices of the Supreme Court and the Heads of
Constitutional Commissions.
 e. None of the above.
ANSWERS
1. a | 2. d | 3. a | 4. e | 5. d | 6.
a | 7. e | 8. c | 9. b | 10. d |
11. e | 12. b | 13. c | 14. a |
15. D
#9 CHAPTER 3 DISBURSEMENTS OF LOCAL
FUNDS
1. It constitutes all payments made during a
given period either in currency, by check,
through bank and electronic transfers,
telegraphic transfers, letters of credit,
credit/debit cards and other non-conventional
modes of payment.
 a. Local Funds
 b. Appropriations
 c. Disbursements
 d. Savings
 d. None of the above
2. Disbursements of public funds shall be
guided by the following prohibitions except:
 a. Advance Payments
 b. Expenditures for Religious or Private Purposes
 c. Expenses for Reception and Entertainment

 d. Cash Overdrafts in the Treasury
 e. None of the above
3. Disbursements from the General Fund and
Special Education Fund shall require the
following except:
 a. Certification as to existence of appropriation
that has been legally made for the purpose by the
Local Budget Officer.
 b. Certification as to necessity, legality, as well as
to the validity, propriety and legality of support
documents by the head of the requesting
department or office.
 c. Certification in the Disbursement Voucher by
the Local Accountant and the Local Treasurer.
 d. Approval by the Local Chief Executive.
 e. None of the above
4. Disbursement from the Trust Fund shall
require the following except:
 a. Certification by the Local Budget Officer
 b. Certification by the Local Treasurer
 c. Certification by the Local Accountant
 d. Approval by the Local Chief Executive
 e. Necessary documents are attached to the
disbursement vouchers/payrolls.
5. It is used for the payment of salaries and
other emoluments of government employees.
 a. Human Resource Budget
 b. General Payroll
 c. Daily Wage Payroll
 d. Local Fund
 e. Payroll
6. These are those granted to Cashiers,
Disbursing Officers, Paymasters and/or
Property/Supply Officers separately.
 a. Commutable Allowances
 b. Honoraria to officials and employees
 c. Special Cash Advances
 d. Regular Cash Advances
 e. Salaries and Wages
7. These are those granted on the explicit
authority of the Local Chief Executive only to
duly designated disbursing officers or
employees for other legally authorized
purposes.
 a. Commutable Allowances
 b. Honoraria to officials and employees
 c. Special Cash Advances
 d. Regular Cash Advances
 e. Salaries and Wages
8. The cash advance for petty operating
expenses shall be sufficient for the recurring
expenses of the agency for:
 a. 15 days
 b. 1 month
 c. 1 quarter
 d. 6 months
 e. 1 year
9. The Accountable Officer may request
replenishment of the case advance when the
disbursements reach at least:
B C L T E R e v i e w e r | 14
 a. 10%
 b. 25%
 c. 50%
 d. 75%
 e. None of the above.
10. The cash advance shall be supported by
which document(s):
 a. Written authority by the Local Chief Executive
 b. Approved application for bond
 c. Estimate of expenses
 d. None of the above
 e. All of the above
11. The amount of the cash advance shall be
limited to the requirements for 2 months. The
Accountable Officer shall submit a Report of
Disbursements:
 a. Within 3 days after the end of each month
 b. Within 5 days after the end of each month
 c. Within 10 days after the end of each month
 d. Within 15 days after the end of each month
 e. Within 30 days after the end of each month
12. Travels and payment of travel expenses of
officials and employees of National
Government Agencies will require approval of
the Department Secretary or his equivalent if it
will last more than:
 a. 10 days
 b. 15 days
 c. 30 days
 d. 45 days
 e. 60 days
13. The travel expenses of government
personnel regardless of rank and destination
shall be in the amount of:
 a. Php 500.00
 b. Php 800.00
 c. Php 1,500.00
 d. Php 5,000.00
 e. Any amount as requested
14. The cash advance voucher for official
foreign travel shall be supported by which
document(s):
 a. Travel Order
 b. Itinerary of Travel
 c. Authority from the President to claim
Representation Expenses, when applicable.
 d. Certification of the local official or employee
concerned duly verified by the Local Accountant to
the effect that no clothing allowance had been
received during the next preceding 24 months, if
clothing allowance is being claimed.
 e. Official receipts of initial expenses made in
preparation for such travel.
15. Cash advance for salaries and wages shall
be liquidated within the prescribed period of:
 a. 3 days after each 15 day/end of the month pay
period
 b. 5 days after each 15 day/end of the month pay
period
 c. 15 days after each 15 day/end of the month pay
period
 d. 30 days after each 15 day/end of the month pay
period

 e. None of the above
God bless!
ANSWERS
1. c | 2. e | 3. e | 4. a | 5. e | 6. d | 7. c | 8.
b | 9. d | 10. e | 11. b | 12. c | 13. b | 14. e |
15. b
#10 CHAPTER 3 DISBURSEMENTS OF LOACL
FUNDS
1. Cash advance for Petty Operating Expenses
and Field Operating Expenses shall be
liquidated within the prescribed period of:
 a. 3 days after the end of the year
 b. 5 days after the end of the year
 c. 15 days after the end of the year
 d. 20 days after the end of the year
 e. 30 days after the end of the year
2. A cash advance has to be returned or
refunded immediately to the Collecting Officer
if it has not been used for period of:
 a. 2 months
 b. 3 months
 c. 6 months
 d. 1 year
 e. 2 years
3. Liquidation of the cash advance for Petty
Operating Expenses shall be supported by the
following reports and documents except:
 a. Report of Disbursements
 b. Approved Requisition and Issue Voucher with
the Certificate of Emergency Purchase, if
necessary
 c. Receipts, Sales Invoices
 d. Certificate of Acceptance/Inspection
 e. Canvass of at least 3 suppliers
4. Examples of the use of intelligence and/or
confidential expenses are as follows except:
 a. Purchase of information relevant to security and
peace and order.
 b. Payment of allowances for special security
personnel.
 c. Payment of rewards.
 d. Rentals and other incidental expenses related
to the maintenance of safe houses.
 e. Purchase of supplies, materials and equipment
necessary for intelligence and confidential
operations and/or projects.
5. The annual appropriations for discretionary
purposes of the local chief executive shall not
exceed at what percentage of the actual
receipts derived from basic real property tax in
the next preceding calendar year.
 a. 2
 b. 3
 c. 5
 d. 10
B C L T E R e v i e w e r | 15
 e. None of the above
Chapter 4. Barangay Appropriations,
Commitments and Disbursements
6. The Barangay Kagawad who is designated
as Chairman of the Committee on
Appropriation shall be responsible in
monitoring the approved appropriations and
the charges against the following funds
except:
 a. 20% Development Fund
 b. Calamity Fund
 c. Sangguniang Kabataan Fund
 d. The Local Budget
 e. Gender and Development Fund
7. The following are classified as Personal
Services except:
 a. Salaries and Wages (Regular)
 b. Salaries and Wages (Contractual)
 c. Special allowances
 d. Honoraria
 e. Cash Gift
8. The frequency of which the Barangay
Treasurer shall record all the checks issued in
the Summary of Checks Issued.
 a. Daily
 b. Weekly
 c. At the end of the month
 d. On or before the 5th day of the following month
 e. None of the above
9. The frequency of which the Barangay
Record Keeper shall record check
disbursement based on the certified Summary
of Checks Issued in the Check Disbursement
Register.
 a. Daily
 b. Weekly
 c. At the end of the month
 d. On or before the 5th day of the following month
 e. None of the above
10. The schedule of which the Barangay
Record Keeper shall submit the Check
Disbursement Register together with the
Summary of Check Issued to the
City/Municipal Accountant for recording of the
checks issued in the books.
 a. Daily
 b. Weekly
 c. At the end of the month
 d. On or before the 5th day of the following month
 e. None of the above
11. The schedule for which the Check
Disbursement Register shall be totaled,
balanced, ruled recapitulated and certified.
 a. Daily
 b. Weekly
 c. At the end of the month

 d. On or before the 5th day of the following month
 e. None of the above
12. The barangay Disbursement Voucher in 4
copies shall be distributed to the following
except:
 a. Local Auditor concerned
 b. City/Municipal Accountant
 c. Attached to the city/municipal Disbursement
Voucher
 d. Barangay Treasurer
 e. Punong Barangay
13. The cash advance for payroll charged
against Barangay Funds maintained by
depository bank shall be liquidated.
 a. Within 3 days after the end of the pay period
 b. Within 5 days after the end of the pay period
 c. Upon demand by the Barangay Treasurer
 d. Upon full release of the amount to intended
recipients
 e. Within 15 days after the end of the pay period
Chapter 5. Sangguniang Kabataan Budget
14. At what percentage of the General Fund of
the barangay shall the budget for the
Sangguniang Kabataan be?
 a. 10%
 b. 3%
 c. 20%
 d. 5%
 e. None of the above
15. Sanggunian Kabataan budgeting is the
same as that of the other LGUs. The major
phases are the following except:
 a. Budget Preparation
 b. Budget Authorization
 c. Budget Review and Execution
 d. Budget Accountability and Reporting
 e. None of the above
ANSWERS
1. d | 2. a | 3. e | 4. b | 5. a | 6. d | 7. c | 8.
a | 9. b | 10. d | 11. c | 12. e | 13. b | 14. a |
15. e
BOOK 4 FUND MANAGEMENT PRACTICES,
ACCOUNTABILITY, CASH EXAMINATION,
SHORTAGES AND SETTLEMENT OF
ACCOUNTS OF LOCAL TREASURERS, AND
LIABILITIES OF LOCAL TREASURERS IN THE
ADMINISTRATION OF LOCAL TAXES, FEES,
AND CHARGES
#11 FUND MANAGEMENT PRACTICES
1. It is the exercise of economic, political and
administrative authority to manage a
country’s/local government affairs at all levels.
It comprises mechanisms, processes, and
institutions through which citizens and groups
articulate their interests, exercise their legal
rights, meet their obligations, and mediate
their differences.
B C L T E R e v i e w e r | 16
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming
2. It allows Local Treasurers to manage the
cash such that it is available when it is needed
for payment of obligations and at the same
time optimize its utilization, ensure that
released allotments are adequately covered by
available cash and/or future collections, and
provide information to facilitate the control of
expenditures.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming
3. It aids the Local Treasurer in cash
management and programming such as Cash
Flow Forecast and the Cash Flow Analysis.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming
4. It is a monthly schedule of anticipated
receipts and disbursements of the local
government unit for the fiscal year showing the
beginning and ending cash balances of each
month.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming
5. It pertains to the receipts from, and
disbursements of cash out of, the regular and
primary operations of the local government
unit such as from collection of taxes, share
from IRA, payment to creditors and employees,
etc.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming
6. It includes receipt of cash from bank loans,
proceeds from the floatation of bonds and
receipts from other types of borrowings.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast
7. It pertains to receipts from the sale,
acquisition or purchase of long term
investments such as real estate, machinery
and other Plant, Property and Equipment.
 a. Cash Flow from Investing Activities

 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast
8. It is a schedule of all income collections and
other receipts to be prepared by all collecting
units. All receipts shall also be classified into
operating, financing and investing activities.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast
9. It is a schedule of all expenditures to be
prepared by the local treasury personnel in
charge of expenditures and disbursements.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast
10. It is a cash flow monitoring tool used to
guide the Local Chief Executive, the Local
Treasurer, and the Local Budget Officer to
control the releases of allotment depending on
the collection/expenditure performance during
the period.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast
11. It is the ratio of the Present Value of Annual
Cash Returns discounted at the lowest
acceptable rate to the Present Value of the
Initial Investment Cost.
a. Present Value Index
b. Time value of money
c. Net Present Value
d. Discounted Rate of Return
e. Annual Cash Inflow
12. It is the amount of cash a project is
expected to generate annually, and equal to
the cash inflows from projected sales and or
service fees minus the estimated cash
outflows for operational expenses.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow
13. It refers to the expected increase in its
peso value considering the prevailing interest
rates, the passage of time, and opportunity
cost of capital and similar factors.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow
B C L T E R e v i e w e r | 17
14. It is the rate at which an investment is
earning, and equates the present value of cash
returns with the present value of the initial
investment.
a. Present Value Index
b. Time value of money
c. Net Present Value
d. Discounted Rate of Return
e. Annual Cash Inflow
15. It represents the excess of the present
value of annual cash returns (discounted at the
lowest acceptable rate) over the present value
of the initial capital investment.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow
16. It refers to the estimated useful life of an
asset or that length of period during which
economic benefits can be derived therefrom.
 a. Cost of money
 b. Economic life
 c. Scrap value
 d. Payback Period
 e. None of the above
17. It refers to the length of time or number of
years it will take to recover the initial outlay for
a project.
 a. Cost of money
 b. Economic life
 c. Scrap value
 d. Payback Period
 e. None of the above
18. The LGU should consider long-term
financing for the acquisition, maintenance and
replacement or expansion of physical assets
(including land) only if the economic enterprise
would be expected to generate revenue in the
near term or if these assets have a useful life
of at least:
 a. 1 year
 b. 3 years
 c. 5 years
 d. 10 years
 e. None of the above
19. Cash Programming Tools such as Cash
Flow Forecast and Cash Flow Analysis can
provide the following information except:
 a. Effectiveness of the Local Chief Executive
 b. Excess in the collection of taxes and other
revenues
 c. Under-collection of taxes and other revenues
 d. Under-disbursement or excess in the
disbursement
 e. Large amount of idle cash that may be invested
20. When funding competing capital projects,
the viability and approvability of the project
and its funding from long-term debt should be
 B C L T E R e v i e w e r | 18

assessed based on the following factors requirements as called for in the notice of
except: suspension.
 a. Approval from the Local Chief Executive  a. Persons Responsible
 b. Nature of the project and uses of funds  b. Accountable Officer
 c. Cost-benefit analysis of the project  c. Local Treasurer
 d. Expenditure plan and sources of debt financing  d. Persons Liable
 e. None of the above  e. None of the above

ANSWERS 6. A written notification by the Auditor to the

1. d | 2. e | 3. a | 4. c | 5. b | 6. c | 7. a | 8. agency head and the accountable officer
e | 9. b | 10. d | 11. a | 12. e | 13. b | 14. d | concerned of the total suspensions,
15. c | 16. b | 17. d | 18. c | 19. a | 20. a disallowances and charges found in audit, as
well as the settlements thereof.
#12 CHAPTER 2 ACCOUNTABILITY,  a. Disallowance
RESPONSIBILITY, AND LIABILITY OF LOCAL  b. Settlement
 c. Certificate of Settlement and Balances
TREASURERS FOR FUNDS AND PROPERTY
 d. Termination
1. It refers to the answerability of every public
 e. Suspension
officer whose duties permit or require the
possession or custody of government funds or
7. The process of determining the status or
property and who shall be accountable
balance of the accountability of an accountable
therefor and for the safekeeping thereof in
officer.
conformity with law.
 a. Disallowance
 a. Liability
 b. Settlement
 b. Public Service
 c. Certificate of Settlement and Balances
 c. Accountability
 d. Termination
 d. Honesty
 e. Suspension
 e. Responsibility
8. The deferment of action to allow or disallow
2. The obligation to prudently exercise
in audit a transaction pending compliance with
assigned or imputed authority attaching to the
certain requirements.
assigned or imputed role of an individual or
group participating in organizational activities  a. Disallowance
or decision.  b. Settlement
 a. Liability  c. Certificate of Settlement and Balances
 b. Public Service  d. Termination
 c. Accountability  e. Suspension
 d. Honesty
9. The disapproval in audit of a transaction,
 e. Responsibility
either in whole or in part.
3. The officer of any government agency  a. Disallowance
whose duties permit or require the possession  b. Settlement
or custody of government funds or property,  c. Certificate of Settlement and Balances
(such as the Local Treasurer, Collecting  d. Termination
Officer, Disbursing Officer, Cashier,  e. Suspension
Paymaster, and Property Officer) who is
required by law to render account to the 10. These are items of property, plant and
Commission on Audit. equipment and are referred to as such because
 a. Persons Responsible of their permanent nature and because they
 b. Accountable Officer are not subject to rapid turnover.
 c. Local Treasurer  a. Quick Assets
 d. Persons Liable  b. Liability
 e. None of the above  c. Fixed Assets
 d. Equity
4. The persons determined by the auditor to be  e. Current Assets
answerable for an audit disallowance or
charge arising from the post-audit of 11. The following are examples of fixed assets
transaction or examination of the cash and except:
accounts of an accountable officer.  a. Equipment
 a. Persons Responsible  b. Furniture and fixtures
 b. Accountable Officer  c. Land
 c. Local Treasurer  d. Office Supplies
 d. Persons Liable  e. Building
 e. None of the above
12. A personal obligation arising from an audit
5. The persons determined by the auditor to be disallowance or charge in the course of post
answerable for compliance with the audit

audit of a transaction or examination of the
cash and accounts of an accountable officer.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets
13. Cash and other assets that are not
earmarked for specific purposes other than the
payment of a current liability or a readily
marketable investment.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets
14. A holding that can be converted into cash
within a short period of time.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets
15. It is the process of elevating to the next
higher authority a decision, order, or ruling.
 a. Settlement
 b. Appeal
 c. Reconsideration
 d. Complaint
 e. None of the above
God bless!
ANSWERS
1. c | 2. e | 3. b | 4. d | 5. a | 6. c | 7. b | 8.
e | 9. a | 10. c | 11. d | 12. b 13. e | 14. a |
15. b
#13 CHAPTER 2 ACCOUNTABILITY,
RESPONSIBILITY, AND LIABILITY OF LOCAL
TREASURERS FOR FUNDS AND PROPERTY
1. When a Local Treasurer or officer
accountable for government funds or property
absconds with them, dies, or becomes
incapacitated in the performance of his duties,
in the case of funds and property of the
province, city and municipality, the
designation of a custodian to take charge of
the funds or property until a successor shall
have been appointed and qualified shall be
made by:
 a. President of the Philippines
 b. Local Chief Executive
 c. Governor
 d. Secretary of Finance
 e. COA Director
2. When a loss of government funds or
property occurs while they are in transit or the
B C L T E R e v i e w e r | 19
loss is caused by fire, theft, or other casualty
or force majeure, the officer accountable
therefor or having custody thereof shall
immediately notify the Commission on Audit or
auditor concerned and, unless the auditor
allows a longer period, shall present his
application for relief with the available
supporting evidence within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
 e. None of the above
3. The sealing of safe and other cash
receptacles shall be resorted to by the
examining officer only in the following
exceptional cases except:
 a. The absence or non-appearance of the
accountable officer for the count.
 b. When the accountable officer refuses to submit
himself to cash examination.
 c. An interruption or the non-completion of the
count during the day or the necessity of controlling
cash, cash items and records.
 d. In cases of deceased, incapacitated or
absconding accountable officer pending the cash
count to be conducted by a committee created to
make an inventory of his cash, cash items and
other accountabilities.
 e. When prima facie evidence of missing funds
has been established.
4. The following shall be disallowed as credit
to accountable officer’s accountability except:
 a. Post-dated Checks and Treasury Warrants
 b. Chits, IOUs, Vales or other forms of Promissory
Notes
 c. Cash and cash items
 d. Demonetized Bills and Coins and Unacceptable
Mutilated Bills
 e. Private Checks not made payable to the agency
or the official title or designation of the agency
head
5. After the cash examination is completed, the
auditor shall prepare and submit a final
narrative report which shall contain:
 a. Introduction
 b. Findings
 c. Recommendations
 d. All of the above
 e. None of the above
6. A person who, by direct provision of the law,
popular election or appointment by competent
authority, shall take part in the performance of
public functions in the government, or shall
perform in said government or in any of its
branches public duties as an employee, agent,
or subordinate official, of any rank or class.
 a. Public officer
 b. Accountable officer
 c. Auditor
 d. Local Treasurer
 e. Examining officer

7. Auditors of all government agencies shall
certify the balances arising in the accounts
settled by them to the Commission on Audit
and to the proper Local Treasurer, Collecting
Officer, or Disbursing Officer, in such form as
the Commission on Audit may prescribe,
within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
 e. None of the above
8. Unless extended in writing and for good
cause, a charge of suspension by the
accountable officer shall become a
disallowance if after receipt of the certificate or
notice it is not satisfactorily explained within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
 e. None of the above
9. It summarizes all suspensions,
disallowances and charges found in audit,
including the settlements thereof as of a given
date.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice
10. It shall be issued as often as suspensions
are made by the auditor for the purpose of
notifying the agency head and the accountable
officer concerned on the suspended
transactions.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Credit Notice
 e. Audit Observation Memorandum
11. It shall be used and issued as often as
disallowance are made by the auditor in order
to notify the agency head, the accountable
officers concerned, and the other persons
liable for the disallowed transaction.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice
12. It is issued by the auditor to the
accountable officer within 30 days from receipt
of the report of disbursements for liquidation
of cash advances, to inform the latter of the
amount allowed in audit and any suspensions
and/or disallowance made.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
B C L T E R e v i e w e r | 20
 d. Notice of Charge
 e. Credit Notice
13. It shall be used and issued as often as
charges are made by the auditor to notify the
agency head, accountable officer concerned
and other persons liable for the deficiencies
noted in the audit of revenues and receipts.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice
14. The Certificate of Settlement and Balances
shall be issued for every accountable officer
and for each fund within:
 a. 10 days after the end of each quarter
 b. 30 days after the end of each quarter
 c. 60 days after the end of each quarter
 d. 90 days after the end of each quarter
 e. None of the above
15. It shall be issued to the agency head and/or
other officials concerned relative to the
findings/observations/other deficiencies noted
in the audit of accounts/transactions and
requiring comment/reply thereto within the
period specified therein.
 a. Notice of Disallowance
 b. Audit Observation Memorandum
 c. Credit Notice
 d. Auditor’s Order
 e. None of the above
God bless!
ANSWERS
1. d | 2. a | 3. e | 4. c | 5. d | 6. a | 7. c | 8.
d | 9. b | 10. a | 11. c | 12. e | 13. d | 14. a |
15. b
#14 CHAPTER 2 ACCOUNTABILITY,
RESPONSIBILITY, AND LIABILITY OF LOCAL
TREASURERS FOR FUNDS AND PROPERTY
1. It shall be used by the auditor to enforce the
settlement of audit disallowances and charges,
whenever the persons liable therefor refuse or
fail to voluntarily settle the disallowances and
charges after the decision has become final
and executor.
 a. Notice of Disallowance
 b. Audit Observation Memorandum
 c. Credit Notice
 d. Auditor’s Order
 e. None of the above
2. All transactions which are irregular,
unnecessary, excessive and extravagant and
those which are illegal and unconscionable.
These are:
 a. Grounds for Disallowance

 b. Grounds for Charges
 c. Grounds for Suspension
 d. Grounds for Termination
 e. None of the above
3. Transactions or accounts which could
otherwise have been settled for some
documentary or technical requirements and
those the legality/propriety/regularity of which
the auditor doubts, but which may possibly be
allowed in audit after satisfactory explanation
or valid justification by the parties concerned.
These are:
 a. Grounds for Disallowance
 b. Grounds for Charges
 c. Grounds for Suspension
 d. Grounds for Termination
 e. None of the above
4. When there is error in the assessment which
resulted in under collection, and error in the
computation of the amount due the payor
which may either be over collection or under
collection. These are:
 a. Grounds for Disallowance
 b. Grounds for Charges
 c. Grounds for Suspension
 d. Grounds for Termination
 e. None of the above
5. The liability of public officers and other
persons for audit disallowances shall be
determined on the basis of the following
except:
 a. Nature of the Disallowance
 b. Duties, responsibilities or obligations of the
officers/persons concerned
 c. Extent of their participation or involvement in the
disallowed transaction
 d. Amount of losses or damages suffered by the
government thereby
 e. Financial capacity of the accountable officer
6. Unless a request for reconsideration is filed
or an appeal is taken, the Report, Certificate of
Settlement and Balances, Order or Decision of
the auditor shall become final after notice
thereof to the parties concerned upon the
expiration of:
 a. 1 month
 b. 3 months
 c. 6 months
 d. 12 months
 e. None of the above
Chapter 3. Administrative, Civil, and Criminal
Liabilities of Local Treasurers in the
Administration
7. Under R. A. No. 7160, failure to post and
publish the itemized monthly collections and
disbursements of the LGU within the
prescribed period shall be punished by:
 a. A fine not exceeding Php 500.00 or by
imprisonment not exceeding 1 month or both
B C L T E R e v i e w e r | 21
 b. A fine between Php 1,000.00 – Php 5,000.00 or
by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or
penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary
action against the officials and employees involved
 e. Automatic dismissal from the service after due
notice and hearing
8. Under the Revised Penal Code, frauds
against the public treasury and similar
offenses by a public officer, such as (1)
Demanding, directly or indirectly, the payment
of sums different from or larger than those
authorized by law, (2) Failing voluntarily to
issue a receipt, as provided by law, for any
sum of money collected by him officially, (3)
Collecting or receiving, directly or indirectly,
by way of payment or otherwise, things or
objects of nature different from that provided
by law, shall be punished by:
 a. A fine not exceeding Php 500.00 or by
imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or
by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or
penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary
action against the officials and employees involved
 e. Automatic dismissal from the service after due
notice and hearing
9. Under R. A. No. 7160 and without prejudice
to criminal prosecution under the Revised
Penal Code and other applicable laws, any
Local Treasurer who fails to issue or execute
the warrant of distraint or levy after the
expiration of the time prescribed, or who is
found guilty of abusing the exercise thereof by
competent authority shall be punished by:
 a. A fine not exceeding Php 500.00 or by
imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or
by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or
penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary
action against the officials and employees involved
 e. Automatic dismissal from the service after due
notice and hearing
10. Under R. A. No. 7160, the enforcement of
any tax ordinance or revenue measure after
due notice of the disapproval or suspension
thereof shall be:
 a. A fine not exceeding Php 500.00 or by
imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or
by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or
penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary
action against the officials and employees involved
 B C L T E R e v i e w e r | 22

 e. Automatic dismissal from the service after due

notice and hearing
God bless!
11. Under R. A. No. 7160, failure to collect tax
due on real property by any officer or to ANSWERS
dispose of delinquent real property at public 1. d | 2. a | 3. c | 4. b | 5. e | 6. c | 7. a | 8.
auction by the Local Treasurer shall be c | 9. e | 10. d | 11. b | 12. d | 13. a | 14. c |
punished by: 15. b
 a. A fine not exceeding Php 500.00 or by
imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or #15 BOOK 5 DETAILED PROCEDURES ON
by imprisonment between 1 – 6 months or both
REAL PROPERTY TAX, BUSINESS TAX FEES
 c. A fine between Php 200.00 – Php 10,000.00 or
penalty of prision correccional in its minimum AND CHARGES AND OTHER RESOURCE
period or both MOBILIZATION
 d. Sufficient ground for administrative disciplinary
action against the officials and employees involved CHAPTER 1 REAL PROPERTY TAX
 e. Automatic dismissal from the service after due
notice and hearing 1. It refers to the actual cost of the machinery
to its present owner, plus the cost of
12. Any public officer who is guilty of the transportation, handling, and installation at the
misappropriation or malversation of funds or present site. This is applicable for newly
property shall suffer the penalty of reclusion acquired machinery not yet depreciated and
temporal in its minimum and medium periods, appraised within the year of its purchase.
if the amount involved is:  a. Acquisition Cost
 a. Php 200.00 – Php 2,000.00  b. Actual Use
 b. Php 2,000.00 – Php 6,000.00  c. Ad Valorem Tax
 c. Php 6,000.00 – Php 12,000.00  d. Market Value
 d. Php 12,000.00 – Php 22,000.00  e. Amortization
 e. None of the above
2. It is a levy on real property determined on
13. Any public officer who is guilty of the the basis of a fixed proportion of the value of
misappropriation or malversation of funds or the real property.
property shall suffer the penalty of prision  a. Acquisition Cost
correccional in its minimum and medium  b. Actual Use
periods, if the amount involved is:  c. Ad Valorem Tax
 a. Php 200.00 – Php 2,000.00  d. Market Value
 b. Php 2,000.00 – Php 6,000.00  e. Amortization
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00 3. It refers to the principal purpose for which
 e. None of the above the property is principally or predominantly
utilized by the person in possession thereof.
14. Any public officer who is guilty of the  a. Acquisition Cost
misappropriation or malversation of funds or  b. Actual Use
property shall suffer the penalty of prision  c. Ad Valorem Tax
mayor in its maximum period to reclusion
 d. Market Value
temporal in its minimum period, if the amount
 e. Amortization
involved is:
 a. Php 200.00 – Php 2,000.00
4. It is a valuable addition made to a property
 b. Php 2,000.00 – Php 6,000.00 or an amelioration in its condition, amounting
 c. Php 6,000.00 – Php 12,000.00 to more than a mere repair or replacement of
 d. Php 12,000.00 – Php 22,000.00 parts involving capital expenditures and labor,
 e. None of the above which is intended to enhance its value, beauty
or utility or to adapt it for new or further
15. Any public officer who is guilty of the purposes.
misappropriation or malversation of funds or  a. Appraisal
property shall suffer the penalty of prision  b. Assessment
mayor in its maximum and medium periods, if  c. Assessment Level
the amount involved is:
 d. Re-assessment
 a. Php 200.00 – Php 2,000.00
 e. Improvement
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00 5. It is the act or process of determining the
 d. Php 12,000.00 – Php 22,000.00 value of property as of a specific date for a
 e. None of the above specific purpose.
 a. Appraisal
 b. Assessment
 B C L T E R e v i e w e r | 23

 c. Assessment Level  b. Depreciated Value

 d. Re-assessment  c. Fair Market Value
 e. Improvement  d. Remaining Value
 e. Replacement or Reproduction Cost
6. It is the assigning of new assessed values to
property, particularly real estate, as the result 13. It is the fair market value of the real
of general, partial, or individual reappraisal of property multiplied by the assessment level. It
the property. is synonymous to taxable value.
 a. Appraisal  a. Assessed Value
 b. Assessment  b. Depreciated Value
 c. Assessment Level  c. Fair Market Value
 d. Re-assessment  d. Remaining Value
 e. Improvement  e. Replacement or Reproduction Cost

7. It is the act or process of determining the 14. It embraces machines, equipment,

value of a property, or proportion thereof mechanical contrivances, instruments,
subject to tax, including the discovery, listing, appliances, or apparatus which may or may
classification, and appraisal of properties. not be attached, permanently or temporarily, to
 a. Appraisal the real property.
 b. Assessment  a. Useful Life
 c. Assessment Level  b. Remaining Economic Life
 d. Re-assessment  c. Assets
 e. Improvement  d. Economic Life
 e. Machinery
8. It is the percentage applied to the fair market
value to determine the taxable value of the 15. It is the period of time expressed in years
property. from the date of appraisal to the date when the
 a. Appraisal machinery becomes valueless.
 b. Assessment  a. Useful Life
 c. Assessment Level  b. Remaining Economic Life
 d. Re-assessment  c. Assets
 e. Improvement  d. Economic Life
 e. Machinery
9. It is the price at which a property may be
sold by a seller who is not compelled to sell 16. It is the estimated period over which it is
and bought by a buyer who is not compelled to anticipated that a piece of machinery or
buy. equipment may be profitably utilized.
 a. Assessed Value  a. Useful Life
 b. Depreciated Value  b. Remaining Economic Life
 c. Fair Market Value  c. Assets
 d. Remaining Value  d. Economic Life
 e. Replacement or Reproduction Cost  e. Machinery

10. It is the cost that would be incurred on the 17. It is land devoted principally to industrial
basis of current prices, in acquiring an equally activity as capital investment and is not
desirable substitute property, or the cost of classified as agricultural, commercial, timber,
reproducing a new replica of the property on mineral, or residential land.
the basis of current prices with the same or  a. Commercial Land
closely similar material.  b. Idle Lands
 a. Assessed Value  c. Industrial Land
 b. Depreciated Value  d. Mineral Lands
 c. Fair Market Value  e. Residential Land
 d. Remaining Value
 e. Replacement or Reproduction Cost 18. It is land devoted principally for the object
of profit and is not classified as agricultural,
11. It is the value remaining after deducting industrial, mineral, timber, or residential land.
depreciation from the acquisition cost.  a. Commercial Land
 a. Assessed Value  b. Idle Lands
 b. Depreciated Value  c. Industrial Land
 c. Fair Market Value  d. Mineral Lands
 d. Remaining Value  e. Residential Land
 e. Replacement or Reproduction Cost
19. It is land principally devoted to habitation.
12. It is the value corresponding to the  a. Commercial Land
remaining useful life of the machinery.  b. Idle Lands
 a. Assessed Value  c. Industrial Land

 d. Mineral Lands
 e. Residential Land
20. These are lands in which minerals, metallic
or non metallic, exist in sufficient quantity or
grade to justify the necessary expenditures to
extract and utilized such materials.
 a. Commercial Land
 b. Idle Lands
 c. Industrial Land
 d. Mineral Lands
 e. Residential Land
God bless!
ANSWERS
1. a | 2. c | 3. b | 4. e | 5. a | 6. d | 7. b | 8.
c | 9. c | 10. e | 11. b | 12. d | 13. a | 14. e |
15. b | 16. d | 17. c | 18. a | 19. e | 20. d
# 16 CHAPTER 1 REAL PROPERTY TAX
1. The appraisal, assessment, levy and
collection of real property tax shall be guided
by the following fundamental principles
except:
 a. Real property shall be appraised at its current
and fair market value.
 b. Real property shall be classified for assessment
purposes on the basis of its potential use.
 c. Real property shall be assessed on the basis of
a uniform classification within each local
government unit.
 d. The appraisal, assessment, levy and collection
of real property tax shall not be let to any private
person.
 e. The appraisal and assessment of real property
shall be equitable.
2. A province or city or municipality within
Metropolitan Manila Area shall fix a uniform
rate of basic real property tax applicable to
their respective jurisdiction. For provinces, at
what maximum rate of the Assessed Value
should the levy be?
 a. 1%
 b. 2%
 c. 3%
 d. 5%
 e. 10%
3. A province or city or municipality within
Metropolitan Manila Area shall fix a uniform
rate of basic real property tax applicable to
their respective jurisdiction. For cities, or
municipalities of Metropolitan Manila Area, at
what maximum rate of the Assessed Value
should the levy be?
 a. 1%
 b. 2%
 c. 3%
 d. 5%
 e. 10%
B C L T E R e v i e w e r | 24
4. For additional Ad Valorem Tax on idle lands,
at what maximum rate of the assessed value of
the property may a province or city, or a
municipality within the Metropolitan Manila
Area levy an annual tax in addition to the basic
real property tax?
 a. 1%
 b. 2%
 c. 3%
 d. 5%
 e. 10%
5. For additional levy on real property tax for
the Special Education Fund outside of
Metropolitan Manila Area, who has the
authority to impose the additional SEF tax?
 a. Local Treasurer
 b. Local Chief Executive
 c. Barangay Chairman
 d. Municipality
 e. Province
6. A province, city or municipality may impose
a special levy on the lands comprised within
its territorial jurisdiction specially benefited by
public works projects or improvements funded
by the LGU concerned. The tax ordinance
imposing the levy shall meet the following
requirements except:
 a. Describe with reasonable accuracy the nature,
extent, and location of the public works projects or
improvements to be undertaken.
 b. State the estimated cost of the public works
projects or improvements.
 c. Identify the lands and owners to be affected or
the persons having legal interest therein.
 d. Specify the meters and bounds by monuments
and lines.
 e. Specify the number of annual installments for
the payment of the special levy.
7. The following are exempt from real property
tax except:
 a. Autonomous regions
 b. Government-Owned or Controlled Corporations
 c. Provinces and sub-provinces
 d. Cities and municipalities
 e. Barangays
8. It refers to any agency of National
Government, not integrated within the
department framework, vested with special
functions or jurisdiction by law, endowed with
some if not all corporate powers, administering
special funds, and enjoying autonomy, usually
through a charter.
 a. Local Government Unit
 b. Sanggunian
 c. Local Treasurer
 d. Instrumentality
 e. Congress
9. The real properties owned by the following
government-owned or controlled corporations
are not exempt from the real property tax
except:
 B C L T E R e v i e w e r | 25

 a. Philippine Economic Zone Authority

 b. Bauang Private Power Corporation 15. The Provincial, City Treasurer, or Municipal
 c. McArthur Park and Beach Resort Treasurer in the case of a municipality within
 d. Land Bank of the Philippines Metropolitan Manila Area shall decide the
 e. Embassies, consulates, and other diplomatic protest filed by the taxpayer when the payment
officers was made under protest, within:
 a. 30 days
10. The real property tax for any year shall  b. 45 days
accrue and constitute a lien on the property  c. 60 days
which shall be superior to any lien, mortgage,  d. 6 months
or encumbrance of any kind whatsoever, and  e. 2 years
shall be extinguished only upon the payment
of the delinquent tax, on:
 a. April 15 God bless!
 b. January 1
 c. January 31 ANSWERS
 d. September 30 1. b | 2. a | 3. b | 4. d | 5. e | 6. c | 7. b | 8.
 e. December 31 d | 9. e | 10. b | 11. e | 12. c | 13. c | 14. a |
15. c
11. The Provincial, City or Municipal Assessor
shall prepare and submit to the Treasurer of
the LGU an assessment roll containing a list of # 17 CHAPTER 1 REAL PROPERTY TAX
all persons whose real properties have been
newly assessed or re-assessed and the values
1. An act providing for the recognition and use
of such properties, on:
of electronic commercial and non-commercial
 a. April 15
transactions, penalties for unlawful use
 b. January 1 thereof, and other purposes.
 c. January 31  a. R. A. No. 7160
 d. September 30
 b. R. A. No. 6657
 e. December 31  c. R. A. No. 6810
 d. R. A. No. 8792
12. For the current year, the City or Municipal
 e. R. A. No. 7279
Treasurer shall, in the case of the basic real
property tax for the SEF, post the notice of the
2. An act instituting a comprehensive agrarian
dates when the tax may be paid without
reform program to promote social justice and
interest at a conspicuous and publicly
industrialization providing the mechanism for
accessible place at the city or municipal hall,
its implementation and for other purposes.
on or before:
 a. R. A. No. 7160
 a. April 15
 b. R. A. No. 6657
 b. January 1
 c. R. A. No. 6810
 c. January 31
 d. R. A. No. 8792
 d. September 30
 e. R. A. No. 7279
 e. December 31
3. The basic real property tax and any other tax
13. The owner of the real property or the
levied under Title 2, Book II of R. A. No. 7160
person having legal interest therein may pay
shall, from the date they become due, be
the real property tax and the additional tax for
collected within:
SEF due thereon, without interest, in 4 equal
installments, to be due and payable as follows:  a. 5 years
 a. January 1, April 1, July 1, and October 1  b. 7 years
 b. January 31, April 30, July 31, and October 31  c. 10 years
 c. March 31, June 30, September 30, and  d. 15 years
December 31  e. 20 years
 d. April 15, July 15, October 15, and December 31
4. In case of fraud or intent to evade payment
 e. None of the above
of the real property tax, an administrative or
judicial action may be instituted for the
14. For payment of tax under protest, the
collection of the same, from the discovery of
taxpayer shall file a protest to the Provincial,
such fraud or intent to evade payment, within:
City Treasurer, or Municipal Treasurer in the
case of a municipality within Metropolitan  a. 5 years
Area, within:  b. 7 years
 a. 30 days  c. 10 years
 b. 45 days  d. 15 years
 c. 60 days  e. 20 years
 d. 6 months
 e. 2 years

5. The period of prescription within which to
collect the real property tax levied under Title
2, Book II of R. A. No. 7160 shall be suspended
for the time during any the following scenarios
except:
 a. The Local Treasurer is legally prevented from
collecting the tax.
 b. The owner of the property has no financial
capacity to pay the tax.
 c. The owner of the property or the person having
legal interest therein requests for re-investigation
and executes a waiver in writing before the
expiration of the period within which to collect.
 d. The owner of the property or the person having
legal interest therein is out of the country or
otherwise cannot be located.
 e. None of the above
6. The Warrant of Levy shall be mailed to or
served upon the delinquent real property
owner or person having legal interest therein,
and after receipt of the same, the levying
officer shall submit a report on the levy to the
sanggunian concerned within:
 a. 3 days
 b. 5 days
 c. 10 days
 d. 15 days
 e. 30 days
7. After service of the Warrant of Levy, the
Local Treasurer shall proceed to publicly
advertise for sale or auction the property or a
usable portion thereof as may be necessary to
satisfy the tax delinquency and expenses of
sale which shall be effected by the issuance of
a Notice of Sale and the posting and
publication thereof, within:
 a. 3 days
 b. 5 days
 c. 10 days
 d. 15 days
 e. 30 days
8. It is issued by the Local Treasurer
concerned, together with the official receipt
and tax clearance which shall in effect
extinguish the tax lien on the property if the
owner of the real property or person having
legal interest therein pays the delinquent tax,
the interest due thereon and the expenses of
sale before the date fixed for the sale.
 a. Certificate of Release
 b. Proof of Service
 c. Warrant of Levy
 d. Certificate of Redemption
 e. Certificate of Sale
9. It is issued by the Local Treasurer to the
purchaser containing the name of the
purchaser, a description of the property sold,
the amount of the delinquent tax, the interest
due thereon, the expenses of sale and brief
description of the proceedings.
 a. Certificate of Release
 b. Proof of Service
B C L T E R e v i e w e r | 26
 c. Warrant of Levy
 d. Certificate of Redemption
 e. Certificate of Sale
10. It is issued by the Local Treasurer to the
owner of the delinquent real property or
person having legal interest therein
invalidating the Certificate of Sale issued to the
purchaser if he pays the amount of the
delinquent tax, including the interest due
thereon and the expenses of the sale plus
interest of 2% per month within one year from
date of sale.
 a. Certificate of Release
 b. Proof of Service
 c. Warrant of Levy
 d. Certificate of Redemption
 e. Certificate of Sale
11. In case there is no bidder for the real
property advertised for sale, the local
Treasurer shall purchase the property in behalf
of the LGU concerned. The taxpayer or any of
his representative may redeem the property by
paying to the Local Treasurer the full amount
of the real property tax and the related interest
and cost of the sale within:
 a. 6 months
 b. 1 year
 c. 2 years
 d. 3 years
 e. 5 years
12. For real estate taken for taxes, fees or
charges, the sanggunian concerned may, by
ordinance duly approved, may dispose of the
real property acquired under Section 263 of R.
A. No. 7160 at public auction, upon notice of
not less than:
 a. 5 days
 b. 15 days
 c. 20 days
 d. 30 days
 e. None of the above
13. The proceeds of the basic real property tax,
including interest thereon, and proceeds from
the use, lease or disposition, sale or
redemption of property acquired by public
auction by the province shall be distributed
accordingly. At what percentage of the
proceeds will accrue to the General Fund of
the province?
 a. 35%
 b. 70%
 c. 40%
 d. 50%
 e. 25%
14. The proceeds of the basic real property tax,
including interest thereon, and proceeds from
the use, lease or disposition, sale or
redemption of property acquired by public
auction by the province shall be distributed
accordingly. At what percentage of the
 B C L T E R e v i e w e r | 27

proceeds will accrue to the barangay where accordingly. At what percentage of the
the property is located? proceeds shall be distributed among the
 a. 35% component barangays of the cities where the
 b. 70% property is located?
 c. 40%  a. 30%
 d. 50%  b. 70%
 e. 25%  c. 40%
 d. 50%
15. The proceeds of the basic real property tax,  e. 25%
including interest thereon, and proceeds from
the use, lease or disposition, sale or Chapter 2. Business and Other Local Taxes
redemption of property acquired by public
auction by the province shall be distributed
accordingly. At what percentage of the 4. These are those imposed by a local
proceeds will accrue to the General Fund of government unit on the privilege of engaging
the municipality where the property is located? in business, occupation and other activities
 a. 35% within its territorial jurisdiction.
 b. 70%  a. Amusement Places
 c. 40%  b. Agricultural Product
 d. 50%  c. Business taxes
 e. 25%  d. Business
 e. Amusement
God bless! 5. It includes the yield of the soil, such as corn,
rice, wheat, rye, hay, coconuts, sugarcane,
ANSWERS tobacco, root crops, vegetables, fruits, flowers
1. d | 2. b | 3. a | 4. c | 5. b | 6. c | 7. e | 8. and their by-products; ordinary salt; all kinds
a | 9. e | 10. d | 11. b | 12. c | 13. a | 14. e | of fish; poultry; and livestock and animal
15. c products, whether in their original form or not.
 a. Amusement Places
# 18 CHAPTER 1 REAL PROPERTY TAX  b. Agricultural Product
 c. Business taxes
1. The proceeds of the basic real property tax,  d. Business
including interest thereon, and proceeds from  e. Amusement
the use, lease or disposition, sale or
redemption of property acquired by public 6. A pleasurable diversion and entertainment.
auction by the city shall be distributed It is synonymous to relaxation, avocation,
accordingly. At what percentage of the pastime, or fun.
proceeds will accrue to the General Fund of  a. Amusement Places
the city?  b. Agricultural Product
 a. 30%  c. Business taxes
 b. 70%  d. Business
 c. 40%  e. Amusement
 d. 50%
 e. 25% 7. These include theaters, cinemas, concert
halls, circuses and other places of amusement
2. The proceeds of the basic real property tax, where one seeks admission to entertain
including interest thereon, and proceeds from oneself by seeing or viewing the show or
the use, lease or disposition, sale or performance.
redemption of property acquired by public  a. Amusement Places
auction by the province shall be distributed  b. Agricultural Product
accordingly. At what percentage of the  c. Business taxes
proceeds will accrue to the barangay where  d. Business
the property is located or equally to all  e. Amusement
component barangays of the city?
 a. 30% 8. It means trade or commercial activity
 b. 70% regularly engaged in as a means of livelihood
 c. 40% or with a view to profit.
 d. 50%  a. Amusement Places
 e. 25%  b. Agricultural Product
 c. Business taxes
3. The proceeds of the basic real property tax,  d. Business
including interest thereon, and proceeds from  e. Amusement
the use, lease or disposition, sale or
redemption of property acquired by public 9. It include non-bank financial intermediaries,
auction by the province shall be distributed lending investors, finance and investment

companies, pawnshops, money shops,
insurance companies, stock markets, stock
brokers and dealers in securities and foreign
exchange, as defined under applicable law, or
rules and regulations thereunder.
 a. Central Bank
 b. Credit card companies
 c. Banks and other financial institutions
 d. Financial service providers
 e. Banking investments
10. It is the capital which a person employs in
any undertaking, or which he contributes to
the capital of a partnership, corporation, or any
other juridical entity or association in a
particular taxing jurisdiction.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
11. These refer to pecuniary liability, as rents
or fees against persons or property.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
12. It includes persons, natural or juridical, not
subject to professional tax under Section 139
of R. A. No. 7160, whose activity consists
essentially of the sale of all kinds of services
for a fee, regardless of whether or not the
performance of the service calls for the
exercise or use of the physical or mental
faculties of the contractor or his employees.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
13. It includes partnerships, no matter how
created or organized, joint-stock companies,
joint accounts (cuentas en participacion),
associations or insurance companies.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
These are those imposed by a local
government unit on the privilege of engaging
in business, occupation and other activities
within its territorial jurisdiction.
 a. Amusement Places
 b. Agricultural Product
 c. Business taxes
 d. Business
 e. Amusement
5. It includes the yield of the soil, such as corn,
rice, wheat, rye, hay, coconuts, sugarcane,
tobacco, root crops, vegetables, fruits, flowers
B C L T E R e v i e w e r | 28
and their by-products; ordinary salt; all kinds
of fish; poultry; and livestock and animal
products, whether in their original form or not.
 a. Amusement Places
 b. Agricultural Product
 c. Business taxes
 d. Business
 e. Amusement
6. A pleasurable diversion and entertainment.
It is synonymous to relaxation, avocation,
pastime, or fun.
 a. Amusement Places
 b. Agricultural Product
 c. Business taxes
 d. Business
 e. Amusement
7. These include theaters, cinemas, concert
halls, circuses and other places of amusement
where one seeks admission to entertain
oneself by seeing or viewing the show or
performance.
 a. Amusement Places
 b. Agricultural Product
 c. Business taxes
 d. Business
 e. Amusement
8. It means trade or commercial activity
regularly engaged in as a means of livelihood
or with a view to profit.
 a. Amusement Places
 b. Agricultural Product
 c. Business taxes
 d. Business
 e. Amusement
9. It include non-bank financial intermediaries,
lending investors, finance and investment
companies, pawnshops, money shops,
insurance companies, stock markets, stock
brokers and dealers in securities and foreign
exchange, as defined under applicable law, or
rules and regulations thereunder.
 a. Central Bank
 b. Credit card companies
 c. Banks and other financial institutions
 d. Financial service providers
 e. Banking investments
10. It is the capital which a person employs in
any undertaking, or which he contributes to
the capital of a partnership, corporation, or any
other juridical entity or association in a
particular taxing jurisdiction.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
11. These refer to pecuniary liability, as rents
or fees against persons or property.
 a. Corporation
 b. Capital Investment

 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
12. It includes persons, natural or juridical, not
subject to professional tax under Section 139
of R. A. No. 7160, whose activity consists
essentially of the sale of all kinds of services
for a fee, regardless of whether or not the
performance of the service calls for the
exercise or use of the physical or mental
faculties of the contractor or his employees.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
13. It includes partnerships, no matter how
created or organized, joint-stock companies,
joint accounts (cuentas en participacion),
associations or insurance companies.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
14. It refers to any business entity, association,
or cooperative registered under the provisions
of R. A. No. 6810.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
15. It means one whose business is to buy and
sell merchandise, goods, and chattels as a
merchant. He stands immediately between the
producer or manufacturer and the consumer
and depends for his profit not upon the labor
he bestows upon his commodities but upon
the skill and foresight with which he watches
the market.
 a. Gross Sales or Receipts
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator
God Bless!
ANSWERS
1. b | 2. d | 3. a | 4. c | 5. b | 6. e | 7. a | 8.
d | 9. c | 10. b | 11. e | 12. c | 13. a | 14. d |
15. b
#19 CHAPTER 2 BUSINESS AND OTHER
LOCAL TAXES
B C L T E R e v i e w e r | 29
1. It means a charge fixed by law or ordinance
for the regulation or inspection of a business
or activity.
 a. Gross Sales or Receipts
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator
2. It is a right or privilege, affected with public
interest which is conferred upon private
persons or corporations, under such terms
and conditions as the government and its
political subdivisions may impose in the
interest of public welfare, security, and safety.
 a. Gross Sales or Receipts
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator
3. It included the total amount of money or its
equivalent representing the contract price,
compensation or service fee, including the
amount charged or materials supplied with the
services and the deposits or advance
payments actually or constructively received
during the taxable quarter for the services
performed or to be performed for another
person.
 a. Gross Sales or Receipts
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator
4. It includes every person who, by physical or
chemical process, alters the exterior texture or
form or inner substance of any raw material or
manufactured or partially manufactured
product in such manner as to prepare it for
special use or uses to which it could not have
been put in its original condition.
 a. Marginal Farmer or Fisherman
 b. Manufacturer
 c. Municipal Waters
 d. Motor Vehicle
 e. Businessman
5. It refers to an individual engaged in
subsistence farming or fishing which shall be
limited to the sale, barter or exchange of
agricultural or marine products produced by
himself and his immediate family, and whose
annual net income from such farming or
fishing does not exceed Php 50,000.00 or the
poverty line established by NEDA for the
particular region or locality, whichever is
higher.
 a. Marginal Farmer or Fisherman
 b. Manufacturer
 c. Municipal Waters
 d. Motor Vehicle
 e. Businessman
 B C L T E R e v i e w e r | 30

6. It means any vehicle propelled by any power  d. Operator

other than muscular power using the public  e. Civilian
roads, but excluding road rollers, trolley cars,
street sweepers, sprinkles, lawn mowers, 12. It means a sale where the purchaser buys
bulldozers, graders, forklifts, amphibian the commodity for his own consumption
trucks, and cranes. irrespective of the quantity of the commodity
 a. Marginal Farmer or Fisherman sold.
 b. Manufacturer  a. Wharfage
 c. Municipal Waters  b. Wholesale
 d. Motor Vehicle  c. Retail
 e. Businessman  d. Vessel
 e. Operator
7. It include streams, lakes, tidal waters within
the municipality, marine waters included 13. It includes every type of boat, craft, or
between two lines drawn perpendicularly to the other artificial contrivance used, or capable of
general coastline from points where the being used, as means of transportation on
boundary lines of the municipality or city touch water.
the sea at low tide and a third line parallel with  a. Wharfage
the general coastline and 15 kilometers from it.  b. Wholesale
 a. Marginal Farmer or Fisherman  c. Retail
 b. Manufacturer  d. Vessel
 c. Municipal Waters  e. Operator
 d. Motor Vehicle
 e. Businessman 14. It means a fee assessed against the cargo
of a vessel engaged in foreign or domestic
8. It includes the owner, manager, trade based on quantity, weight, or measure
administrator, or any other person who received and/or discharged by vessel.
operates or is responsible for the operation of  a. Wharfage
a business establishment or undertaking.  b. Wholesale
 a. Residents  c. Retail
 b. Peddler  d. Vessel
 c. Persons  e. Operator
 d. Operator
 e. Civilian 15. It means a sale where the purchaser buys
or imports the commodities for resale to
persons other than the end user regardless of
9. It means any person who, either for himself the quantity of the transaction.
or on commission, travels from place to place  a. Wharfage
and sells his goods or offers to sell and deliver  b. Wholesale
the same.  c. Retail
 a. Residents  d. Vessel
 b. Peddler  e. Operator
 c. Persons
 d. Operator
 e. Civilian
ANSWERS
10. They refer to every natural or juridical 1. d | 2. c | 3. a | 4. b | 5. a | 6. d | 7. c | 8.
being, susceptible of rights and obligations or d | 9. b | 10. c | 11. a | 12. c | 13. d | 14. a |
of being the subject of legal relations. 15. b
 a. Residents
 b. Peddler
 c. Persons
 d. Operator
 e. Civilian

11. It refer to natural persons who have their

habitual residence in the province, city, or
municipality where they exercise their civil
rights and fulfill their civil obligations, and to
juridical persons for which the law or any other
provisions creating or recognizing them fixes
their residence in a particular province, city or
municipality.
 a. Residents
 b. Peddler
 c. Persons
B C L T E R e v i e w e r | 31