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PA 310 QUIZ 1
PUBLIC ACCOUNTING AND BUDGETING
I. True or False Highlighted Text = True
Write TRUE if the statement is true and FALSE if the statement is false. LOWERCASE
ANSWERS WILL BE MARKED WRONG. (10 items)
1. Efficiency can be gauged by comparing the ratio of planned input vs. actual input.
2. Government accounting is much the same as financial accounting, except that the latter
emphasizes on the receipt and disposition of government funds and properties.
3. Maintaining accounting books is the sole responsibility of government agencies which
are reconciled with the cash records of BTr and budget records of DBM and COA.
4. Accountability stems from responsibility.
5. An employee of a government agency who is found responsible for unlawful
expenditures of funds will be liable to the extent of his personal capacity only.
6. The President is required to exercise his veto power before enacting bills such as the
GAB.
7. The presentation of the proposed budget to the Office of the President is made to seek
final approval from the President and the Cabinet members.
8. The President's Budget Message, NEP, and BESF are called Budget Accountability
Reports.
9. The 'bicam version' of the GAB is sent to the President for ratification of the reconciled
differences between the House of Representatives and Senate's versions.
10. In zero-based budgeting, the savings of a government agency for a fiscal year is
transmitted back to the DBM to form part of the next fiscal year's budget.

II. Multiple Choice

Select the statement that corresponds to the best answer.
1. The budget legislation phase of the budget cycle normally starts and ends as follows:
Start End
a. House deliberations President’s Enactment
b. Senate Deliberations Bicameral Enactment
c. Cabinet Deliberations President’s Enactment
d. Bicameral Deliberations House Enactment
2. Which of the following is a major recipient of the approved budget?
a. National Government Agencies (NGAs)
b. Local Government Units (LGUs)
c. Government Owned and Controlled Corporations (GOCCs)
d. All of the above.
3. Under this type of budget preparation, several parties participate in the budget
preparation, starting from the lowest to the highest levels of the government.
a. Top-down c. Curly top
b. Bottom-up d. Bell bottom
4. Which of the following is not a phase in the budget cycle as implemented in the
Philippines?
a. Budget Preparation

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b. Budget Legislation
c. Budget Execution
d. Budget Reallocation
5. The Philippine Constitution and other laws require government funds to be utilized
a. with the instruction of politicians
b. efficiently and effectively as the head of the agency sees fit
c. in accordance with a national budget that is duly approved by legislation
d. b and c
6. The budget preparation in the Philippines start with the:
a. Budget hearings
b. Budget call
c. Presentation to the Office of the President
d. House of Deliberations
7. It is an authorization issued by the DBM to government agencies to incur obligations for
specified amounts contained in a legislative appropriation in the form of budget release
documents. It is also referred to as Obligational Authority.
a. Allocation c. Allotment
b. Budget d. Appropriation
8. This occurs at the end of a budget cycle
a. Budget Call
b. Audit by COA
c. Budget Accountability Report
d. Performance Review
9. The Budget Accountability phase occurs concurrently with the
a. Budget Legislation phase
b. Budget Execution phase
c. Budget Preparation phase
d. None, the Budget Accountability phase occurs when all of the above are finished
10. This is the phase where government funds are spent
a. Budget Preparation
b. Budget Execution
c. Budget Legislation
d. Budget Accountability
11. According to the State Audit Code of the Philippines (P.D. No. 1145), the objective of
government accounting:
a. to produce information concerning past operations and present conditions
b. to provide a basis for guidance for future operations
c. to report on the financial position and the results of operations of government
agencies for the information of all persons concerned
d. to provide for control of the acts of public bodies and officers in the receipt,
disposition and utilization of funds and properties
e. All of the above
12. Government accounting places greater emphasis on
a. the sources and utilization of governments should be government funds*
b. the accounting for foreign loans and deficit
c. the responsibility, accountability, and liability of entities entrusted with
government funds and properties

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d. a and c
13. Which of the following offices is charged with government accounting responsibility?
a. Barangay hall
b. Government-owned fire station
c. Department of Public Works and Highways (DPWH)
d. All of these
14. In the Philippines, which government agency is charged with the responsibility of
submitting financial reports to the President and Congress?
a. Commission of Accounting (COA)
b. Securities and Exchange Commission (SEC)
c. Department of Budget and Management (DBM)
d. None of these
15. The cash custodian of the government is the
a. Bureau of Treasury (BTr)
b. Department of Budget and Management (DBM)
c. Commission on Audit (COA)
d. Bureau of Internal Revenue (BIR)
16. The GAM for NGAs
a. is a unique set of accounting standards specifically designed for the Philippine
government
b. was promulgated by the DBM based on the authority conferred to it by the
Philippine Constitution
c. was promulgated primarily to harmonize the government accounting standards
with international accounting standards
d. All of these
17. According to GAM for NGAs, the financial records and reports of government entities
shall comply with all of the following except:
a. Fund cluster accounting
b. Philippine Public Sector Standards should be PPSAS
c. Cash Basis of Accounting
d. Double-entry bookkeeping
18. According to the GAM for NGAs, information has this characteristic if it can affect the
decision of financial statement users.
a. Affectionateness
b. Reliability
c. Relevance
d. Irrelevance
19. The financial statements of a government entity do not include:
a. Statement of Financial Position
b. Statement of Financial Performance
c. Notes to Financial Statements
d. All of the above are included
20. The two systems applied in preparing the nation’s budget are
a. Incremental system and zero-based budgeting
b. Zero-based budgeting and top-down approach
c. Incremental system and bottom-up approach
d. Bottom-up approach and zero-based budgeting

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