Acctg 11

Quiz 1 – Finals
October 5, 2020

TEST 1:
1. Which of the following records is technically not considered an accounting book?
a. General Journal
b. Subsidiary Ledger
c. Cash Disbursements Journal
d. Registry of Appropriations and Allotments

2. Which of the following is (are) affected when a government entity incurs obligations?
a. ORS
b. RAPAL
c. RAOD
d. a and c

3. Which of the following is (are) affected when a government entity makes disbursements to settle
recorded obligations?
a. ORS
b. RAOD
c. Journal and Ledger
d. All of these

4. Which of the following accounts is most likely credited when a government entity remits its
collections to the National Treasury?
a. Cash-Tax Remittance Advice
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Treasury/Agency Deposit, Regular
d. Cash – Collecting Officers

5. This event is recorded in the books of accounts.

a. Notice of Appropriation
b. Notice of Allotment
c. Notice of Cash Appropriation
d. Closing entries

6. The receipt of allotment is recorded in the

a. RAPAL
b. RAOD
c. ORS
d. a and b

7. According to the GAM for NGAs, the Registries are (choose the incorrect statement)
a. maintained by the accounting unit of a government entity
 b. maintained by fund cluster
c. maintained for each object of expenditure, whenever the registry is used for monitoring
obligations and disbursements
d. maintained by the budget division of a government entity

8. The 8-digit Revised Chart of Accounts (RCA) Code for the account “Subsidy from National
Government” starts with number
a. 2
b. 3
c. 4
d. 6

9. Which of the following is not a form of disbursement authority?

a. Allotment
b. Notice of Cash Allocation
c. Non-Cash Availment Authority
d. Cash Disbursement Ceiling

10. The NCA is recorded in the

a. Registry of Allotments and Notice of Cash Allocation (RANCA).
b. Books of accounts (Journal and Ledger)
c. Obligation Request and Status (ORS)
d. a and b

11. The journal entry to record the billing of revenue (e.g., Communications Network Fees) is
a. Accounts receivable xxx
Communications Network Fees xxx
b. Cash-Collecting Officers xxx
Communications Network Fees xxx
c. Cash-Modified Disbursement System (MDS), Regular xxx
Communications Network Fees xxx
d. Accounts receivable xxx
Subsidy from National Government xxx

12. The journal entry to record the receipt of Notice of Cash Allocation is
a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx
b. Cash-Collecting Officers xxx
Subsidy from National Government xxx
c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx
d. No journal entry.

13. The journal entry to record the receipt of appropriation is

a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx
 b. Cash-Collecting Officers xxx
Subsidy from National Government xxx
c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx
d. No journal entry.

14. The journal entry to record the receipt of allotment is

a. Cash-Modified Disbursement System (MDS), Regular xxx
Subsidy from National Government xxx
b. Cash-Collecting Officers xxx
Subsidy from National Government xxx
c. Cash-Tax Remittance Advice xxx
Due to the National Government xxx
d. No journal entry.

15. The entry to record the reversion of unused NCA at the end of the year is
a. Subsidy from National Government
Cash-Modified Disbursement xxx
System (MDS), Regular xxx
b. Accumulated Surplus/(Deficit) xxx
Cash-Treasury/Agency Deposit,
Regular xxx
c. Subsidy from National Government xxx
Cash-Collecting Officers xxx
d. No journal entry.

16. The entry to record the remittance of contributions to the GSIS, Pag-IBIG or PhilHealth is
a. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Tax Remittance Advice xxx
b. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Collecting Officers xxx
c. Due to GSIS/ Pag-IBIG/ PhilHealth xxx
Cash-Modified Disbursement
System (MDS), Regular xxx
d. No journal entry.

17. The entry to record the liquidation of payroll fund is

a. Salaries and Wages, Regular xxx
Personal Economic Relief Allowance (PERA) xxx
Due to BIR xxx
Due to GSIS xxx
Due to Pag-IBIG xxx
Due to PhilHealth xxx
Due to Officers and Employees xxx
b. Advances for Payroll xxx
Cash-Modified Disbursement
System (MDS), Regular xxx
 c. Due to Officers and Employees xxx
Advances for Payroll xxx
d. Cash-Collecting Officers xxx
Advances for Payroll xxx

18. The entries to record the constructive remittance of taxes withheld to the BIR and the constructive
receipt of NCA for the TRA include
a. Cash-Tax Remittance Advice xxx
Due to BIR xxx
b. Subsidy from National Government xxx
Cash-Tax Remittance Advice xxx
c. a and b
d. None of these.

19. The entry to close the “Cash-Treasury/Agency Deposit, Regular” account at the end of the period is
a. Accumulated Surplus/(Deficit) xxx
Cash-Treasury/Agency Deposit,
Regular xxx
b. Subsidy from National Government xxx
Cash-Treasury/Agency Deposit,
Regular xxx
c. Cash-Collecting Officers xxx
Cash-Treasury/Agency Deposit,
Regular xxx
d. None of these. The account is not closed.

20. The journal entry to record the collection of unbilled tax revenue (e.g., Travel Tax) through direct
deposit in Authorized Agent Banks is
a. Accounts Receivable xxx
Travel Tax xxx
b. Cash-Modified Disbursement System (MDS), Regular
Travel Tax xxx
xxx
c. Cash-Collecting Officers xxx
Travel Tax xxx
d. Cash-Treasury/Agency Deposit, Regular xxx
Travel Tax xxx

21. A government entity recognizes revenue from exchange or non-exchange transactions. Which of
the following may not give rise to revenue by a government entity?
a. Receipt of military equipment as donation from a foreign government.
b. Receipt of cash donation from an international organization.
c. Receipt of free trainings and seminars regarding process technology on farming from an
international organization.
d. Receipt of a bequest from the king of a foreign realm.

22. All of the following give rise to the recognition of revenue from non-exchange transaction except
 a. sale of goods c. fines and penalties
b. taxes d. donation of goods in-kind

23. According to P.D. 1445, all revenues of an entity shall be remitted to the National Treasury and
included in the
a. General Fund c. National Fund
b. Special Fund d. Official Fund

24. Remittances of collections to the National Treasury are recorded as a debit to which of the
following accounts
a. Cash – Collecting Officers
b. Cash-Treasury/Agency Deposit, Regular
c. Cash-Modified Disbursement System (MDS), Regular
d. Subsidy from National Government

25. The national government received a foreign grant conditioned on the construction of a public
infrastructure. Entity A was chosen as the implementing agency. When the national government
received the grant, the entry in the BTr’s books included a
a. credit to the “Subsidy from National Government” account.
b. debit to the “Cash – Modified Disbursement System (MDS), Regular” account.
c. credit to the “Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas” account.
d. credit to the “Other Deferred Credits” account.

26. At the end of the period, the “Cash-Treasury/Agency Deposit, Regular” account is closed to the
a. Subsidy from National Government account.
b. Accumulated Surplus or Deficit account.
c. Cash-Modified Disbursement System (MDS), Regular account.
d. This account is not closed.

27. Which of the following does not give rise to revenue from assistance or subsidy?
a. Inter-agency Fund Transfer
b. Notice of Cash Allocation
c. Tax Remittance Advice
d. Non-Cash Availment Authority

28. According to P.D. 1445,

a. Amounts received in trust and from business-type activities of the government may be
separately recorded.
b. All revenues of an entity shall be retained by the entity and included in its General Fund,
unless another law specifically allows otherwise.
c. A collecting officer shall immediately issue a temporary receipt upon collecting a payment of
any nature.
d. Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash
receipts, the BIR may approve, upon request, the exemption from the use of accountable
forms.
29. According to the GAM for NGAs, revenue includes only those that are received or receivable by
the entity in its own account. Accordingly, receipts on behalf of another entity are
a. recorded as liability.
b. recognized as revenue.
c. recorded only in the registries but not in the books of accounts.
d. remitted only through the use of the TRA.

30. Government entities and business entities use the same accounting treatment for all of the
following except
a. trade discounts allowed to customers.
b. recognizing revenue from royalty agreements.
c. recognizing revenue from dividends.
d. remittance of taxes withheld to the BIR

31. Which of the following shall certify the availability of allotment before obligations can be incurred
and disbursements are made?
a. Budget Officer
b. Head of Agency
c. Chief Accountant
d. COA Auditor

32. Which of the following shall certify the availability of funds and completeness of supporting
documents before the Head of Agency or his/her authorized representative can enter into
contracts that obligate the government for the eventual payment of government funds?
a. BTr
b. Budget Officer
c. Chief Accountant
d. COA Auditor, jointly with DBM

33. All Disbursement Vouchers (DVs) or Payroll shall be approved by the

a. Budget Officer
b. Head of Agency
c. Chief Accountant
d. COA Auditor

34. Which of the following is not one of the modes of disbursements by a government entity?
a. check
b. credit card
c. online payment
d. payment through Short Messaging System (SMS)

35. Payments of checks that are chargeable against the Treasury Account are credited to the
a. Modified Disbursement System Checks
b. Commercial Checks
 c. Advice to Debit Account
d. Cash-Modified Disbursement System (MDS) account

36. According to the GAM for NGAs, cash disbursements are made through
a. cash advances to authorized personnel
b. direct cash payments by the Head of Agency to the payees
c. direct cash payment by Collecting Officers to payees
d. any of these

37. Which of the following statements regarding the disbursement of government funds is incorrect?
a. No additional cash advance shall be given to any official or employee unless the previous cash
advance given to him is first liquidated.
b. Transfer of cash advance from one officer to another is prohibited.
c. A cash advance shall not be used to encash checks or to liquidate a previous cash advance.
d. Officials and employees authorized to travel shall be granted cash advance to cover traveling
expenses. The amount granted shall be accounted for as “Due to Officers and Employees.”

38. It is an authority issued by an agency’s Central Office to its regional and operating units to cover
the latter’s cash requirements.
a. Notice of Cash Allocation (NCA)
b. Tax Remittance Advice (TRA)
c. Cash Disbursement Ceiling (CDC)
d. Notice of Transfer of Allocation (NTA)

39. Which of the following reflects a Non-Cash Availment Authority (NCAA) mode of disbursement?
a. Accounts Payable xxx
Cash-Constructive Income
Remittance xxx
b. Accounts Payable xxx
Cash – Modified Disbursement
System (MDS), Regular xxx
c. Accounts Payable xxx
Subsidy from National Government xxx
d. None of these.

40. Entity A makes payment through bank transfer. This mode of disbursement is most likely through
the use of a(an)
a. MDS check
b. Commercial check
c. Advice to Debit Account
d. Credit Card
TEST 2:

Record the following transactions or events:

a. Receipt a notice of appropriation amounting to P400M.

b. Receipt allotment from the DBM amounting to P380M.
c. Incurrence of obligations amounting to P350M.
d. Receipt of Notice of Cash Allocation amounting to P325M.
e. Accrual of P300M salaries upon approval of payroll. The breakdown as follows:

Salaries and Wages 280,000,000.00

Personal Economic Relief Allowance
(PERA) 20,000,000.00

Gross Compensation 300,000,000.00

Withholding tax 75,000,000.00

GSIS 15,000,000.00

Pag-ibig 15,000,000.00

PhilHealth 8,000,000.00

Total Deductions 113,000,000.00

Net 187,000,000.00

f. Granting of cash advance for the payroll.

g. Liquidation of the cash advance for payroll.
h. Remittance of taxes withheld to the BIR.
i. Remittance of other amounts withheld to the other government agencies
concerned.
j. Billing revenue for Rent/Lease Income amounting to P700M.
k. Collection of P550M from billed revenue and remittance of the total collection to
the National Treasury.
l. Reversion of unused NCA.