Overview of Government Accounting

Practice Set #1
Liyuh (10/10)

The last digit of the coding structure of RCA pertains to the general ledger account. FALSE
The last digit of the code of Accumulated Impairment Losses-Land is 2. FALSE

Answer: both statements are false

One of the objectives of government accounting is to provide a monitoring mechanism on

funds and property received, disposed, and utilized. TRUE
Government accounting information is essential in promoting transparency. TRUE

ANSWER: both statements are true

The registries used by national government agencies are also considered books of original entry.
FALSE
One of the registries is called Registry of Appropriations, Obligations and Disbursements
(RAOD). FALSE

Answer: both statements are false

The UACS provides a harmonized budgetary and accounting code classification that will
facilitate the efficient and accurate financial reporting of revenue collections and
expenditures. TRUE

UACS shall be applied in the preparation of financial statements as required by the

Philippine Accounting Standards Board. FALSE

Answer: only statement 1 is true

Asset accounts start with a code of 3. FALSE

Accounts Receivable has an account code of 30301010. FALSE

Answer: both statements are false

One of the sources of account descriptions and codes in the UACS coding elements is the RCA.
TRUE
The UACS object code of PERA-Civilian is 5010201001. TRUE

Answer: both statements are true

One of the key elements of the coding framework of UACS is the code of ethics. FALSE
Another key element is the code of Davinci. FALSE

Answer: both statements are false

Government accounting provides quantitative information about receipts and disbursements of

government fund and property. TRUE
The quantitative information provides a basis for evaluating performance of government
agencies. TRUE

Answer: both statements are true

In the RCA, the account number contains 9 digits. FALSE

The RCA code of Appeal Fees is 402011400. FALSE

Answer: both statements are false

DBM has the responsibility of seeing to it that UACS is consistent with the account classification
and coding structure with the RCA. FALSE
The UACS sub-object code of Hazard Duty Pay-Civilian is 02. TRUE
Practice Set #2
Jane
1. The RCA Code for the account “Advances to Contractors” starts with number
5
1
3
2
4

2. Which agency is responsible for the consistency of account classification and coding
structure with RCA?

BTr
DOF
DBM
PSA
COA

3. It is a government-wide harmonized, budgetary, treasury, and accounting code

classification.

UACS
RCA
RAOPS
IATF
GAM

4. The definition of government accounting is embodied in

New Government Accounting System (NGAS)

P. D. No. 1445, Sec. 110
P. D. No. 1445. Sec. 109
Philippine Constitution
Government Accounting Manual (GAM)

5. Which is an intra-agency payable account?

Due to Pag-ibig
Due to Philhealth
Due to NGAS
 Due to Operating Units
Due to BIR

6. Which registry contains columns for allotments, obligations, unobligated allotments,

disbursements, and unpaid obligations?

RBUD
ROAR
RAOD
RROR
RAPAL

7. Which account has the RCA code 40103020?

Tax Revenue-Goods and Services

Excise Tax
Trust Liabilities
Land
Accumulated Surplus/Deficit

8. Which is a sub-major account group?

Cash in Bank-Local Currency

Petty Cash
Assets
Cash and Cash Equivalents
Fixed assets

9. Government accounting aims to provide information concerning past operations and

present conditions. It also aims to provide a basis for predicting revenues and expenses of
the future periods.

Only statement 2 is true.

Only statement 1 is true.
Both statements are false.
Both statements mav be true or false.
Both statements are true.

10. Which reporting requirement may not be served by the UACS?

 Financial statements required by PSASBP
Management reports required by heads of NGAs
Financial statements provided to Senate for inquiry
Financial reports required by DBM and COA

11. Which is a major account group?

Current Liabilities
Financial Liabilities
Liabilities
Interest Payables
Payables

12. Which of the following records is technically not considered an accounting book?

registry of appropriations and allotments

general ledger
cash disbursements journal
subsidiary ledger
general journal

13. Which is not an expense under Personnel Services?

Transportation Allowance
Personal Economic Relief Allowance (PERA)
Longevity Pay
Subsistence Allowance
Traveling Expenses-Foreign

14. Which is a financial expense?

Licensing Fees
Loss on Guaranty
Insurance Expense
Guarantee Fees
Facilitation Expense
15. It encompasses the processes of analyzing, recording, classifying, summarizing and
communicating all transactions involving the receipt and disposition of government funds
and property, and interpreting the results thereof.

tax accounting
government reporting
government auditing
responsibility accounting
government accounting
Government Accounting Responsibility
Practice set #1

1. Mr. A, a government employee entrusted with the custody of government funds has lost
the funds due to force majeure. What should Mr. A do to relieve him from liability?

Mr. A should disregard it because it is not his fault

Mr. A should immediately notify the COA within 30 days

Mr. A should notify the head of the agency after 30 days

Mr. A should immediately notify BTr within 30 days

2. What is the role of the Bureau of Treasury in relation to government accounting

responsibility?

To receive and keep national funds and manage or control thereof

To design, prepare and approve the accounting systems of government agencies
To prepare the annual financial reports of the national government, its instrumentalities and
government-owned or controlled
corporations
To keep the general accounts of the national government

3. Which of the following maintains the journals and ledgers?

Congress
Commission on Audit
National Government Agencies
Department of Budget and Management

4. Which is in charge of implementing the national budget?

National Government Agencies

Commission on Audit
Department of Budget and Management
Congress
 5. Which is not true about government funds?

Government funds can be transferred from one officer to another in accordance with the
instructions of the head of the office. (NOT SURE)
Government funds can be transferred from one officer to another if the law allows it.
Government funds can be transferred from one officer to another only if COA authorizes it.
Transfer of government funds should be properly documented

6. Accounting responsibility is mandated by the Constitution of the Philippines. The head of

the agency and other personnel who have authority over government funds are directly
responsible.

Both statements are false.

Only statement 1 is true.
Only statement 2 is true.
Both statements are true.

7. Which of the following is tasked in keeping the general accounts of the government,
supporting vouchers, and other documents?

Department of Budget and Management

National Government Agencies
Congress
Commission on Audit

9. Government agency ABC is entrusted with government resources. According to P. D. 1445,

who is directly responsible for the efficient and effective utilization of these resources?

The head of government agency ABC

The COA staff assigned in government agency ABC
The government employees who have custody over government resources
The Central Bank governor
10. Mr. B, an accountable officer, used government resources for his personal needs. Which of
the following statements is true?

Mr. B has no liability at all if he is able to justify the use of government resources.
Both Mr. A and Mr. B are primarily liable for unlawful use of government resources.
Mr. B is personally liable for unlawful use of government resources.
Mr. A, the immediate head of Mr. B is personally liable for unlawful use of government
resources.

Budgetary Accounts, GAM, FS

Practice Set #1
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1. Which of the following is not one of the specific accounting systems of a government
agency?

Financial reporting system

Disbursement system
Budgetary accounts system
Deposit and withdrawal system

2. Which is true about the principles that govern financial transactions and operations of the
government?

Trust funds may be realigned to other projects as the need arises.

Government money shall be paid only when provided by law or other specific statutory
authority.
Government funds may be used for private purposes if there is special statutory authority.
For special and emergency cases, disbursements may not be subject top approval of proper
government officials.

3. Which is not one of the aims of GAM?

Update standards in accounting for government funds

Update coding structure and accounts
Update accounting books and records
Update principles in auditing utilization of government funds
 4. All disbursements of government entities must be in conformity with the law and the

COA and audit findings

PFRS
PPSAS
National budget

5. These are authorizations programmed annually or for some other period prescribed by
law which do not require periodic action by Congress.

Supplemental Appropriations
Continuing Appropriations
Revolving Funds
Automatic Appropriations

6. The registry used when NCA is received.

RAPAL
RENREP
RAOD
RANCA

7. The equity account of a government agency is called

Accumulated surplus/deficit
Net assets (not sure)
Revaluation surplus
Government agency equity
 8. The GAM for NGAs is promulgated by the Senate under the authority bestowed by the
Philippine Constitution. Its purpose is to harmonize government accounting standards
with the U. S. GAAP.

Only statement 1 is true.

Both statements are true.
Both statements are false
Only statement 2 is true.

9. Allotment refers the authorization by the legislative body to allocate funds for purposes
specified by the legislative or similar authority. A government entity must first receive an
allotment before it can incur obligations.

Statement 1: appropriation (correct answer)

Only statement 2 is true.

Both statements are true.
Only statement 1 is true.
Both statements are false.

10. It is an authorization issued by DBM to NGAs to incur obligations.

Allotment
Disbursement
Obligation
Appropriation

11. After the budget call from DBM, the proposed budget is submitted to the Office of the
President. The President reviews the budget and sends it to Congress for further
deliberation.

Only statement 2 is true.

Both statements are true.
Both statements are false
Only statement 1 is true.

12. In the Statement of Financial Performance of a government entity, the difference between
total revenues and total operating expenses is called
Excess of revenue over expenses
Net income/loss
Net financial performance
Surplus/deficit

13. Arrange the following steps according to the sequence that they appear in the budget
cycle.
Allotment
I. Appropriation
Ill. Incurrence of obligation
IV. Disbursement

II, I, III, IV

14. Which does not apply to responsibility accounting?

Coding structure for responsibility centers

Distinction between controllable and non-controllable costs
Identification of responsibility centers
Separate books of accounts for controllable and non-controllable costs

15. Which of the following financial statements is peculiar to a government entity?

Statement of Financial Position

Statement of Comparison of Budget and Actual Amounts
Statement of Financial Performance
Statement of Cash Flows

16. Which qualitative characteristic of financial reporting pertains to freedom from material
errors and bias?

Completeness
Neutrality
Timeliness
Substance over form

17. These refer to the attributes of financial information that make them relevant to users

Usefulness characteristics
Quantitative characteristics
Fundamental principles
Qualitative characteristics

18. This is a budget that is prepared in such a way that estimated revenues exceed estimated
expenditures.

Line item budget

Special budget
Balanced budget
Annual budget

19. The committee formed to harmonize conflicts between the Representatives and Senate
versions of the General Appropriations Bill is called

Bicaramel Conference Committee

Referee Conference Committee
Dual House Committee
Bicameral Conference Committee

20. If financial information is not reported on a timely basis, it does not possess

Materiality
Neutrality
Relevance
Reliability