After the budget call from the DBM, the proposed budget of various agencies are
submitted immediately to the Office of the President for review. FALSE
The various registries maintained by government entities primarily serve as internal control for controlling and monitoring the conformance of actual results with the approved budget. Separate accounting records and budget registries are maintained for each fund cluster. Budget deliberations in the Congress start in the House of Senate. FALSE
The principles in the GAM for NGAs are similar to the principles in the PFRs. The various registries maintained by government entities primarily serve as internal control for controlling and monitoring the conformance of actual results with the approved budget. An entity prepares its budget by simply rolling-over the budget in the previous year and adjusting each line item by 10% increment to reflect inflation. This process is described as zero- based budgeting. FALSE Responsibility accounting greatly enhances budget accountability because managers are evaluated only in terms of the costs or other variables that they control, and therefore, budget deviations can be readily attributed to the managers accountable therefor. The entry to record the reversion of unused NCA at the end of the period is the exact opposite of the entry used to record the receipt of NCA. Both the ORS and RAOD are updated each time an obligation is incurred, a payable is recorded for the obligation incurred, and disbursements are made to settle the recorded payables. Government entities and business entities use the term “obligation” or the phrase “incurrence of obligation” similarly. FALSE Technically, only the Journals and Ledgers are considered accounting records; Registries are budget records. The GAM for NGAs is promulgated by the Philippine congress under the authority conferred to it under the Philippine Constitution. FALSE
Government entities and business entities use the term "obligation" or the phrase "incurrence of obligation" similarly. FALSE The principles used in the financial reporting of government entities are very unique that only a very few of these principles are similar to those that are applied to business entities. FALSE Which of the following accounts is most likely credited when a government entity remits its collections to the National Treasury? Cash – Collecting Officers A government entity records a transaction by debiting an account with a Revised Chart of Account (RCA) Code that starts with “1” and crediting an account with an RCA Code that starts with “4.” This transaction is most likely a constructive remittance of taxes withheld to the BIR through TRA a constructive remittance of taxes withheld to the BIR through TRA A government entity remitting collections to the BTr will debit this account to record the remittance. Cash-Treasury/Agency Deposit, Regular Entity A, a government entity, receives notice of its ₱10M appropriation for the year. The journal entry to record this event is No journal entry. Recording in the Obligation Request and Status (ORS) is made when All of these Which of the following statements is incorrect regarding the GAM for NGAs? The DBM accounts for the cash, public debt and related transactions of the NG
Arrange the following steps in the budget process according to the sequence that they appear in the budget cycle. IV, I, V, II and III
Which of the following is not charged with government accounting responsibility under the GAM for NGAs? House of Representative
Arrange the following steps in the budget process according to the sequence that they appear in the budget cycle. V, II, IV, I and III
1. Allotment 2. Bicameral deliberations 3. Budget accountability reports 4. President’s enactment of the GAA 5. Budget hearings with the DBM
A legislation approves the allocation of P200B funds to support the operations of Entity A (a government agency) in the current year. At the start of first quarter, Entity A receives authorization to incur obligations for a maximum amount of P90B in that quarter. Entity A extends half of that authorization to its lower operating units. During the quarter, Entity A receives monthly authorization to disburse funds not to exceed P30B per month. Entity A extends half of those monthly authorizations to its lower operating units. At the end of the quarter, total obligations incurred amounted to P80B while total disbursements amounted to P70B. In Entity A’s first quarter Statement of Appropriations, Allotments, Obligations, Disbursements and Balances, how much is shown as “unpaid obligations”? P10B What is the legal basis of the COA in promulgating the GAM for NGAs?
Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines According to the GAM for NGAs, these assets are those which have historical, cultural and environmental significance, and are intended to be preserved for future generations. Heritage assets
Responsibility accounting requires all of the following except
a. Separate books of accounts to segregate controllable and non-controllable costs b. Identification of responsibility centers c. Distinction between controllable and non-controllable costs d. Coding structure for responsibility centers Entity A, a government entity, has an unused NCA of ₱50,000 at the end of the current year. The entry to record the reversion of unused NCA is
Subsidy from National Government
Cash-Modified Disbursement
System (MDS), Regular
It is a part, segment, unit or function of a government agency, headed by a manager,
who is accountable for a specified set of activities. a. Responsibility Accounting b. Responsibility Center c. Budget Center d. Call Center In the financial reporting system of the national government, to which of the following shall an entity reconciles its cash records? a. Commission on Audit b. Bureau of Treasury c. Department of Budget and Management d. Office of the President Which of the following approaches to budget preparation provides the best internal control? a. Incremental budgeting b. Zero-sum budgeting c. Top-down budgeting d. Zero-based budgeting It is the expenditure authority derived from appropriation laws, government ordinances, and other decisions related to the anticipated revenue or receipts for the budgetary period Approved Budget A legislation approves the allocation of P200B funds to support the operations of Entity A (a government agency) in the current year. At the start of first quarter, Entity A receives authorization to incur obligations for a maximum amount of P90B in that quarter. Entity A extends half of that authorization to its lower operating units. During the quarter, Entity A receives monthly authorization to disburse funds not to exceed P30B per month. Entity A extends half of those monthly authorizations to its lower operating units. At the end of the quarter, total obligations incurred amounted to P80B while total disbursements amounted to P70B. The 90B authorization is referred to as Allotment Under GAM, which of the following is not a Financial Statement Title? Statement of Comparison of Budget and Actual Amounts Which of the following GOCCs and GFIs is classified as GBEs? Water Districts The entry to close the “Cash-Treasury/Agency Deposit, Regular” account at the end of the period is
Accumulated Surplus/(Deficit)
Cash-Treasury/Agency Deposit,
Regular
Entity A, a government entity, receives its Notice of Cash Allocation amounting to ₱5,000,000 for the year. The journal entry to record this event is
Cash-Modified Disbursement System (MDS), Regular
Subsidy from National Government
A legislation approves the allocation of P200B funds to support the operations of Entity A (a government agency) in the current year. At the start of first quarter, Entity A receives authorization to incur obligations for a maximum amount of P90B in that quarter. Entity A extends half of that authorization to its lower operating units. During the quarter, Entity A receives monthly authorization to disburse funds not to exceed P30B per month. Entity A extends half of those monthly authorizations to its lower operating units. At the end of the quarter, total obligations incurred amounted to P80B while total disbursements amounted to P70B. In Entity A’s first quarter Statement of Appropriations, Allotments, Obligations, Disbursements and Balances, how much is shown as “unobligated allotments”? P10B The statement of management responsibility for financial statements attached to a government agency’s combined financial statements (operating units, regional offices, and main office) would most likely be dated not later than February 14 of the year following the reporting period.
Which of the following is (are) affected when a government entity incurs obligations?
ORS and RAOD
How does government accounting differ from the accounting for business entities? Government accounting places greater emphasis on sources and utilization of funds in accordance with the law and management's stewardship over government resources entrusted to the entity.
A legislation approves the allocation of P200B funds to support the operations of Entity A (a government agency) in the current year. At the start of first quarter, Entity A receives authorization to incur obligations for a maximum amount of P90B in that quarter. Entity A extends half of that authorization to its lower operating units. During the quarter, Entity A receives monthly authorization to disburse funds not to exceed P30B per month. Entity A extends half of those monthly authorizations to its lower operating units. At the end of the quarter, total obligations incurred amounted to P80B while total disbursements amounted to P70B. In Entity A’s first quarter Statement of Appropriations, Allotments, Obligations, Disbursements and Balances, how much is shown as “unreleased appropriations”? P110B Which of the following would most likely comes last in the budget process? a. Budget accountability reports b. Allotment c. Disbursements d. Performance review Which of the following statements best differentiates the government accounting process from the accounting process of a business entity? The government accounting process is similar to that of a business entity, except that it incorporates budgetary controls, such as recording in the budget registries and preparing periodic budget accountability reports.
