Villanueva, Rich Ann R.

BSA 3-1

UNIT III: ASSESSMENT

1. Define and discuss the underlying reason why a chart of accounts is prescribed
in the New Government Accounting System.
To provide new accounts for the adoption of Philippine Public Sector
Accounting Standards (PPSAS) which were harmonized with the IPSAS to
enhance the accountability and transparency of financial reports, and
ensure compatibility of financial information, the COA recognizes the need
to revise the existing NGAS Chart of accounts prescribed COA Cir. No.
2004-008 dated September 20, 2004.

The Commission also recognizes the need for uniform accounts to be

used in the national government accounting and budget system to
facilitate the preparation of harmonized financial and budget accountability
reports.

2. What are the key elements of the Unified Accounts Code Structure (UACS)?
Explain each element briefly.
a. FUNDING SOURCE CODES – It is a six-digit code to reflect the
Financing Source, Authorization and Fund Category.
b. ORGANIZATION CODES – It is a twelve-digit code to reflect the
Department, Agency or Sub-agency or Operating Unit/Revenue
Collecting Unit.
c. LOCATION CODES – It is a nine-digit code composed of Region,
Province, City/Municipality, and Barangay.
d. MAJOR FINAL OUTPUT(MFO), ACTIVITY AND PRODUCT(PAP)
CODES – It is a nine-digit code comprised of Program, MFO, 1st Level
Activity and 2nd Level Activity.
 e. OBJECT CODES – It is ten-digit code composed of the first eight digits
for COA Chart of Accounts Object and the next two digits are for Sub-
object.

3. What are the five classifications of expenses in the Revised Chart of Accounts in
COA Circular No. 2013-002 dated January 30, 2013? Give the sub-major
account group classification.
1) Personnel Services
a. Salaries and Wages
b. Other Compensation
c. Personnel Benefit Contribution
d. Other Personnel Benefits

2) Maintenance and other Operating Expenses

a. Traveling Expenses
b. Training and Scholarship Expenses
c. Supplies and Material Expenses
d. Utility Expenses
e. Communication Expenses
f. Awards/Rewards and Prizes
g. Survey, Research, Exploration and Development expenses
h. Demolition/ Relocation and Delisting/Dredging Expenses
i. Generation, transmission and Distribution Expenses
j. Confidential, Intelligence and Extraordinary Expenses
k. Professional Services
l. General Services
m. Repairs and Maintenance
n. Financial Assistance/Subsidy
o. Taxes, Insurance Premiums and other Fees
p. Labor and Wages
q. Other Maintenance and Operating Expenses
3) Financial Expenses
a. Financial Expenses

4) Direct Costs
a. Cost of Gods Manufactured
b. Cost of Sales

5) Non-Cash Expenses
a. Depreciation
b. Amortization
c. Impairment Loss
d. Losses