GOVERNMENT ACCOUNTING

FINALS

1. Fund administered by government under a fiduciary capacity is referred to as:

a. Government Auditing c. Government Accounting
b. Government Budgeting d. National Government

2. Which is not charged with government accounting responsibility?

a. General fund c. Trust fund
b.specific fund d. Depositary fund

3. What is the role of the Bureau of Treasury in relation to government accounting responsibility?
a. To receive and keep national funds and manage or control disbursements thereof
b. To desgn, prepare, and approve the accounting systems of national government
c. To keep the general accounts of the national government
d. To prepare the annual financial report of the national government

4. The books of accounts are composed of the following:

a. Regular Agency books and National Government books
b. National Government books and books of original entry
c. Journal and Subsidiary ledgers
d. Regular agency books and books of original entry

5. The following are the systems followed in the GAM except

a. Commercial Accounting c, Responsibility Accounting
b. Double-entry bookkeeping d. Fund Accounting

6. What is the basis of accounting under the GAM?

a. Modified Accrual c. Accrual Basis
b. Cash Basis d. Strict Accrual

7. In controlling and monitoring the appropriations and allotment, DBM shall maintain the following
registries, except:
a. Registry of Appropriation & Allotment (RAPAL) c. Registry of Allotments & NCA (RANCA)
b. Registry of Special Purpose Fund Appropriation d. Registry of Notice of Cash Allocation and
(RESPFA) Replenishments (RENREP)

8. Special purpose fund is a fund appropriated for purposes other than those provided in the regular
funds of government agencies. Which of the following is a special purpose fund?
a. Organizational adjustment fund c. Reimbursable fund
b. Sinking fund d. General Fund

9. Which of the following journals shall be used under the GAM?

a. Journal of checks issued c. Journal of bills rendered
b. Journal and analysis of obligations d. General journal

10. The books of original entry shall be used to record, in time sequence, financial transactions and
information presented in duly certified and approved accounting documents. What is the basis in
recording the financial transactions in the journals?
a. Journal Entry Voucher c. Journal and analysis of obligations
b. Journal of checks issued d. Journal of bills rendered
11. Which of the following is not a regular agency books?
a. General Journal c. Cash Journal
b. General Ledger d. Cash Disbursement Journal

12. This is an authorization issued by the DBM to government agencies to withdraw cash from National
Treasury through the issuance of Modified Disbursement System checks or other authorized mode
of disbursements
a. Allotment c. Notice of Cash Allocation
b. MDS checks d. Appropriation

13. Under the GAM, serviceable assets no longer being used shall be reclassified as:
a. Depreciated assets c. Other Assets
b. Obsolete property d. Property, plant and equipment

14. It is the system of prescribing the procedures for recording appropriations, allotments and
obligations
a. Fund Accounting c. Obligation Accounting
b. Budgetary Accounting d. Government Accounting

15. Which department prepares the national budget, which serves as the basis of the GAA?
a. Executive c. Judiciary
b. Legislative d. National Government Agencies

16. Is the legislative consideration, review and approval of the national budget
a. Preparation c. Execution
b. Authorization d. Accountability

17. It is the implementation of the national budget by different departments and release of allotments
a. Preparation c. Execution
b. Authorization d. Accountability

18. As specifically provided for in the new constitution, no money shall be paid out of the National
Treasury EXCEPT in the pursuance of
a. Budget c. Fund
b. President's executive order d. Appropriation

19. It is the legislative authorization to make payments out of government funds under specified
conditions and specific purposes.
a. Appropriation c. Obligation
b. Allotment d. Budgeting

20. It is the authorization from the DBM to an agency to incur an obligation up to a specified amount
that must be within the legislative appropriation.
a. Appropriation c. Obligation
b. Allotment d. Fund release

21. It is the amount committed to be paid by the govt. arising from an act of a duly administrative
officer and which binds the govt. to the immediate & eventual payment of money
a. Appropriation c. Obligation
b. Allotment d. Commitment

22. It is the formal document issued by the DBM to the head of the agency containing authorization,
conditions and amount of allocation
a. Special Allotment Release Order c. Notice of Cash Allocation
b. Allotment and Obligation Slip d. Registry of Allotment and Obligation

23. It is the annual documents, required at the onset of budget execution phase, which contains the
agencies targets and plans for the current year.
a. Agency Budget Matrix c. Budget Execution Documents
b. Annual Cash Program d. Budget Accountability Reports

24. It is a component of Budget Accountability Reports that should be reported on a monthly basis
a. Monthly Cash Program c. Estimate of Monthly Income
b. List not yet due and demandable d. Statement of Allotments, Obligation & Balances

25. In order to prvide agencies with sufficient time to implement projects/activities covered by
realignment, request for realignment of released allotments under the prior budget year shall be
requested until
a. January 1 of the current year c. June 30 of the current year
b. April 1 of the current year d. December 31 of the current year
MIDTERMS

1. The objectives GAM includes all of the following, except:

a. To simplify government accounting and its eventual computerization

b. To adopt a system that is conformity with Philippine Financial Reporting Standards (PFRS)
c. To keep close tabs on erring officers that misappropriate government funds
d. To generate periodic and relevant financial reports for better monitoring of performance

2. It is the government body that keeps the general accounts of the government and prepares the annual
financial statement of the national government, local government agencies and government-owned or controlled
operations (GOCCs)?

a. Commission on Audit (CoA) c. Department of Budget and Management

b. Bureau of Treasury d. Department of Finance
3. What are the components of the financial statements (FS) under GAM?
a. Balance sheet, statement of income and expenses and notes to the FS
b. Balance sheet, statement of income and expenses and cash flow statement
c. Balance sheet, statement of income and expenses and statement of government equity
d. Balance sheet, statement of income and expenses, cash flow statement, statement of government equity
and notes to the FS

4. It is a system of prescribing the procedures for recording appropriations, allotments and obligations.

a. Fund accounting c. Obligation accounting

b. Budgetary accounting d. Treasury disbursement coding system

5. It is an authorization made by law or other legislative enactment, directing payments of goods and services
out government funds under specified condition or for specific purposes.

a. Allotment c. Appropriation
b. Obligation d. Malversation

6. It is the allotment by the Central office to its Regional office.

a. Regular allotment c. Ordinary Allotment

b. Sub-allotment d. Secondary Allotment

7. It refers to the commitment by a government agency arising from an act of a duly authorized official that
binds the government to the immediate or eventual payments of a sum of money.

a. Allotment c. Appropriation
b. Obligation d. Malversation

8. It is an authorization issued by the DBM to government agencies to withdraw cash from the National
Treasury through the issuance of Modified Disbursement System Checks.

a. Allotment c. Appropriation
b. Obligation d. Notice of Cash Allocation

9. The following are the system followed in the GAM, except:

a. Commercial accounting c. Responsibility accounting

b. Double-entry bookkeeping d. Fund accounting

10. Which is not a basic feature of GAM?

a. One-fund concept c. Three-digit account number system

b. Two-column trial balance d. Four-digit responsibility account coding structure

11. Which is not a basic feature of GAM?

a. Straight-line depreciation c. Corollary and negative (red) entries

b. Allowance for doubtful accounts d. Perpetual inventory system

12. This serves as the basis for recording transactions in the general journal.

a. Journal Entry Voucher (JEV) c. Government bidding files

b. Source documents d. Government contractor form

13. Which of the following is not a Regular Agency Book?

a. General journal c. Cash Journal

b. General ledger d. Check disbursements journal

14. Under the GAM, supplies and materials purchased for inventory purposes are recorded using:

a. First-in, first-out (FIFO) c. Weighted average

b. Last-in, first-out (LIFO) d. Moving average

15. Petty cash fund being maintained by government agencies shall be maintained under:

a. Fluctuating fund system c. Either of these

b. Imprest system d. Neither of these

16. Under the GAM, the standard residual value of depreciable assets is equal to:

a. 10% of cost c. P 1,000

b. Zero d. P 5,000

17. It represents all funds received by the government from taxes, grants, aids and subsidies.

a. Government income c. Cash Fund

b. Government surplus d. Borrowing

18. What are the two major classification of government income?

a. National and Local income c. External and Internal trade

b. General and Specific income d. Any of these

19. Which is not a major classification of government expenses?

a. Personal Services c. Selling and administrative expenses

b. Financial expenses d. Maintenance & other operating expenses

20. Personal services in government entities would normally include:

a. Advertising, rent, insurance and gasoline

b. Salaries, bonuses and allowances
c. Travels, training, seminar and telephone
d. Bank charges, interest and foreign currency exchange losses

21. These accounts are closed to the government equity account at the end of the period.
a. Balance sheet accounts c. Guarantee deposit
b. Intermediate accounts d. Allowance for doubtful accounts

22. A government agency shall maintain which of the following registries for allotments and obligations?

a. Registry of Allotments and Obligation- Personal Services (RAOPS)

b. Registry of Allotments and Obligation-Maintenance & Other Operating Expenses (RAOMO) & Registry of
Allotments and Obligation- Financial Expense (RAOFE)
c. Registry of Allotments and Obligation-Capital Outlay (RAOCO)
d. All of the choices

23. In controlling and monitoring the appropriations and allotment, DBM shall maintain the following
registries, except:

a. Registry of Appropriation & Allotment (RAPAL)

b. Registry of Special Purpose Fund Appropriation (RESPFA)
c. Registry of Allotments & NCA (RANCA)
d. Registry of Notice of Cash Allocation and Replenishments (RENREP)

24. This consists of cash and resources of the government that are available for any purpose.

a. General fund c. Trust fund

b. Special fund d. Depository fund

25. Fund administered by government under a fiduciary capacity is referred to as:

a. General fund c. Trust fund

b. Special fund d. Depository fund

26. Disbursement of local funds must be approved by:

a. Division head c. Accountant

b. Local administrator d. Local chief executive

27. It is the process of analyzing, recording, classifying, summarizing and communicating all transactions
involving the receipt and disposition of government funds and property and interpreting the results
thereof.

a. Government Auditing
b. Government Accounting
c. Government Budgeting
d. National Government

28. Which is not charged with government accounting responsibility?

a. Commission on Audit
c. National Government Agencies
b. Department of Budget & Management
d. Legislative Department
29. What is the role of the Bureau of Treasury in relation to government accounting responsibility?

a. To receive and keep national funds and manage or control disbursements thereof
b. To design, prepare, and approve the accounting systems of national government
c. To keep the general accounts of the national government
d. To prepare the annual financial report of the national government

30. The books of accounts are composed of the following:

a. Regular Agency books and National Government books

b. National Government books and books of original entry
c. Journal and Subsidiary ledgers
d. Regular agency books and books of original entry

31. What is the basis of accounting under the GAM?

a. Modified Accrual
b. Accrual Basis
c. Cash Basis
d. Strict Accrual

32. Special purpose fund is a fund appropriated for purposes other than those provided in the regular funds of
government agencies. Which of the following is a special purpose fund?

a. Organizational adjustment fund

b. Reimbursable fund
c. Sinking fund
d. General Fund

33. The books of original entry shall be used to record, in time sequence, financial transactions and information
presented in duly certified and approved accounting documents. What is the basis in recording the financial
transactions in the journals?

a. Journal Entry Voucher

b. Journal and analysis of obligations
c. Journal of checks issued
d. Journal of bills rendered

34. Which of the following is not a regular agency books?

a. General Journal
c. Cash Journal
b. General Ledger
d. Cash Disbursement Journal

35. This is an authorization issued by the DBM to government agencies to withdraw cash from National
Treasury through the issuance of Modified Disbursement System checks or other authorized mode of
disbursements

a. Allotment
c. Notice of Cash Allocation
b. MDS checks
d. Appropriation

36. Which department prepares the national budget, which serves as the basis of the GAA?

a. Executive
c. Judiciary
b. Legislative
d. National Government Agencies

37. It is the implementation of the national budget by different departments and release of allotments

a. Preparation
c. Execution
b. Authorization
d. Accountability

38. As specifically provided for in the new constitution, no money shall be paid out of the National Treasury
EXCEPT in the pursuance of:

a. Budget
c. Fund
b. President's executive order
d. Appropriation

39. It is the legislative authorization to make payments out of government funds under specified conditions
and specific purposes.

a. Appropriation
c. Obligation
b. Allotment
d. Budgeting

40. It is the authorization from the DBM to an agency to incur an obligation up to a specified amount that
must be within the legislative appropriation.

a. Appropriation
c. Obligation
b. Allotment
d. Fund release

41. It is the amount committed to be paid by the govt. arising from an act of a duly administrative officer and
which binds the govt. to the immediate & eventual payment of money

a. Appropriation
c. Obligation
b. Allotment
d. Commitment

42. It is the formal document issued by the DBM to the head of the agency containing authorization, conditions
and amount of allocation
a. Special Allotment Release Order
c. Notice of Cash Allocation
b. Allotment and Obligation Slip
d. Registry of Allotment and Obligation

43. It is the annual documents, required at the onset of budget execution phase, which contains the agencies
targets and plans for the current year.

a. Agency Budget Matrix

c. Budget Execution Documents
b. Annual Cash Program
d. Budget Accountability Reports

44. It is a component of Budget Accountability Reports that should be reported on a monthly basis

a. Monthly Cash Program

c. Estimate of Monthly Income
b. List not yet due and demandable
d. Statement of Allotments, Obligation & Balances

45. In order to provide agencies with sufficient time to implement projects/activities covered by realignment,
request for realignment of released allotments under the prior budget year shall be requested until

a. January 1 of the current year

c. June 30 of the current year
b. April 1 of the current year
d. December 31 of the current year
 Terminologies

MALVERSATION 1. A government official that disburses government funds beyond approved

budget may be charged with
PROGRAM 2. The activities necessary to perform a major purpose for which a government
entity is established.
PROJECT 3. It is a compound of program covering a homogeneous group of activities that
result in the accomplishment of an identifiable output.
EXPECTED RESULTS 4. The services, products or benefits accruing to the public estimated in terms of
performance target.
RESOURCES 5. The actual asset of the government agency such as cash, receivables, land and
buildings.
SURPLUS BUDGET 6. A national budget designed wherein total estimated revenue is more than total
estimated expenditures.
LINE ITEM BUDGET 7. This type of budget focuses on the objects of expenditure such as salaries and
wage, traveling expenses, freight, supplies, materials equipment.
ZERO BASED BUDGETING . 8.This is a process in budget preparation that required systematic
consideration of all programs, projects, and activities with the use of defined
ranking procedures, and does not accept the prior’s year budget as a starting point
for analysis.

TRANSMITTAL SHEET 9. A covering letter in transmitting as agency’s accounting report to CoA, DBM
and others agencies.
INTERNAL REVENUE ALLOTMENT 10. It is the allotment release by Local Government Units (LGU)
or Department of Budget and Management to barangays.

Multiple Choice
1. It is the system of prescribing the procedures for recording appropriations, allotments and obligations.
a. Fund accounting
b. Budgetary accounting
c. Obligation accounting
d. Government accounting
2. Its main concern is the availability and use of funds for public services.

a. Commission on Audit
b. Department of Finance
c. Bureau of Treasury
d. National Budgetary System
3. It is a statement of estimated receipts and estimated expenses of the government, which serves as basis
for a General Appropriation Act.
 GOVERNMENT ACCOUNTING
a. Statement of financial position
b. Statement of operations
c. National government budget
d. Local government budget
.
5. It is the legislative consideration, review and approval of the national budget.
a. Preparation
b. Authorization
c. Execution
d. Accountability
6. It is the implementation of the national budget by different departments and release of allotments.
a. Budget preparation
b. Budget authorization
c. Budget execution
d. Budget accountability
7. It denotes the responsibility to others that one or more persons have for their actions and behavior.
a. Preparation
b. Accountability
c. Authorization
d. Execution

8. As specifically provided for in the New Constitution, no money shall be paid out of the National
Treasury EXCEPT in the pursuance of
a. Budget
b. President's executive order
c. Fund
d. Appropriation
9. It is the legislative authorization to make payments out of government funds under specified
conditions and specific purposes.
a. Appropriation
b. Allotment
c. Obligation
d. Budgeting
10. It is the authorization from the Department of Budget and Management to an agency to incur
obligation up to a specified amount that must be within the legislative appropriation.
a. Obligation
b. Appropriation
c. Allotment
d. Fund release
11. It is the amount committed to be paid by the government arising from an act of a duly
authorized administrative officer and which binds the government to the immediate and eventual
payment of money
a. Obligation
 GOVERNMENT ACCOUNTING
b. Appropriation
c. Allotment
d. Commitment

12. It is the functions and activities necessary for the performance of a major purpose for which a
government entity is established.
a. Program
b. Project
c. Resources
d. Internal control

13. The journal entry to be made in the books of government agencies/units upon receipt of Notice of
Cash Allocation is
a. Cash — MDS, Regular
Subsidy from National Government

b. Cash in Bank — Local Currency, Current Account

Subsidy from National Government
c. Cash in Bank — Local Currency, Savings Account
Subsidy from National Government
d. Cash in Bank — Local Currency, Time Deposit
Subsidy from National Government
14. The budgetary accounts in government accounting is consist of the following:
a. Allotment, obligation, and liquidation.
b. Appropriation, liquidation, and Notice of Cash Allocation.
c. Appropriation, allotment, and obligation.
d. Allotment, liquidation, and Notice of Cash Allocation.
15. It is the formal document issued by the Department of Budget and Management to the head of the
agency containing the authorization, conditions and amount of allocation.

a. Special Allotment Release Order

b. Allotment and Obligation Slip
c. Notice of Cash Allocation
d. Registry of Allotment and Obligation

16. In government accounting, which of the following is a Personnel service?

a. Telephone charge
b. Rent
c. Meal allowance for overtime work
d. Salaries and wages

17. In government accounting, which of the following is a capital outlay?

a. Salaries and wages
 GOVERNMENT ACCOUNTING
b. Repairs and maintenance
c. Land improvement
d. Mcrchandise inventory

18. It is the annual documents required at the onset of the budget execution phase, which contain the
agencies' targets and plans for the current year.
a. Agency Budget Matrix (ABM)
b. Annual Cash Program (ACP)
c. Budget Execution Documents (BEDS)
d. Budget Accountability Report (BARS)
19. It is a budget execution document that serves as an overall plan of the government agency
encompassing the targeted outputs and estimated obligations broken down by quarter.
a. Physical and Financial Plan (PFP)
b. Monthly Cash Program (MCP)
c. Estimate of Monthly Income
d. List not yet due and demandable obligations
20. It is a component of Budget Accountability Reports (BARs)" that should be reported on monthly
basis.
a. Monthly Cash Program
b. List not yet due and demandable obligations
c. Estimate of monthly income
d. Statement of allotments, obligations and balances
21. It is a disbursement authority representing Modified Disbursement Checks issued and direct
payments to external creditors per validated advice to debit account in the list of due and
demandable accounts payable.
a. Tax Remittance Advice (TRA)
b. Notice of Cash Allocation (NCA)
c. Non-Cash Availment Authority (NCAA)
d. Cash disbursement Ceiling (CDC)

22. According to submit NBC No. 551 dated January of Budget 2, 2014, government are required to submit to
the Department of Budget and management their plans, programs and targets for the year using the Budget
Execution Documents (BEDs) on or before
a. January 1
b. January 31
c. November 30
d. December 31
23. It is a budget where the proposed expenditures are equal to or less than the estimated revenues.
a. Annual budget
b. Supplemental budget
c. Balanced budget
d. Line-item budget
 GOVERNMENT ACCOUNTING
24. It is a budgeting approach that uses performance information to assist in deciding where the funds will

go.
a. Performance-Informed budgeting
b. Zero-based budgeting
c. Performance-based budgeting
d. Line-item budgeting
25. It is a phase of budget cycle that starts upon the receipt of the President's budget by the House Speaker
and ends with the President's enactment of the General Appropriations Act.
a. Budget preparation
b. Budget legislation
c. c. Budget execution and operation
d. Budget accountability

26. A budget, the basis of which are the objects of expenditure.

a. Annual budget
b. Special budget
c. Line-item budget
d. Supplemental budget

27. A budget of special nature and generally submitted in special forms on account that itemizations are
not adequately provided in the Appropriations Act or that the amount are not at all included in the
Appropriations Act.
a. Annual budget
b. Special budget
c. Line-item budget
d. Supplemental budget
28. This document outlines the priority areas of government activity applicable to the budget year.
a. Budget Message
b. Budget Proposal
c. Budget Call
d. Budget Calendar
29. In government accounting, which of the following is Maintenance and Other Operating Expenses
(MOOE):
a. Night Shift Differential
b. Janitorial Services
c. Honorarium
d. Salaries and wages
30. It is a budget release document that shall serve as obligational authority that replaced the Agency
Budget Matrix.

a. General Appropriations Act Release Document (GÅARD)

 GOVERNMENT ACCOUNTING
b.Allotment Release Program (ARP)
c. Budget Execution Documents (BED)
d.Budget Accountability Reports (BAR)

31. It is the expenditure authority derived from laws, appropriations, bills, government ordinances and
other decisions related to the anticipated revenue or receipts for the budgetary period.
a. Annual budget
b. Approved budget
c. Appropriation
d. Allotment

32. This form shall be used by the requesting offices in the utilization of their approved
budget allocation per General Appropriation Act Release Document (GAARD) and other
budgetary laws/authority, and be maintained by fund cluster.
a. Budgetary Utilization Request and Status
b. Request of Obligation and Allotment
c. Obligation Request and Status
d. Notice of Obligation Request and Status Adjustments