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Quiz 2 Key

This document contains a quiz for ACC111 with 29 multiple choice questions about accounting for government and non-profit organizations. The questions cover topics such as sources of government revenue, types of transactions, financial statements, budgeting processes, and accounting entries related to appropriations, allotments, obligations, disbursements, petty cash funds, and other accounts.

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Riezel Pepito
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185 views4 pages

Quiz 2 Key

This document contains a quiz for ACC111 with 29 multiple choice questions about accounting for government and non-profit organizations. The questions cover topics such as sources of government revenue, types of transactions, financial statements, budgeting processes, and accounting entries related to appropriations, allotments, obligations, disbursements, petty cash funds, and other accounts.

Uploaded by

Riezel Pepito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ACC111 - QUIZ 2: Accounting for Government and NonProfit Organization

Select the letter of the best answer

_____________________ 1. Which of the following is not a source of revenue for the government?

a. Taxes c. grants and donations from other


governments
b. fees collected by government agencies d. contract price on govt. contract
awarded to private companies
_____________________ 2. Which of the following is a non-exchange transaction?
a. Leasing c. Rendering of legal services
b. Collection of taxes d. Collection of taxes
_____________________ 3. All of the following are requirements peculiar to a government entity. Which
is not?

a. present budget information in the financial statements


b. fund cluster accounting
c. incorporating budgetary controls in the financial reporting system
d. accrual basis of accounting

_____________________ 4. A government entity collects fees for the processing of certain permits. The
processing of a permit would normally take a few minutes. The processing fee is collected upon
issuance of the permit. This government entity would normally recognize revenue from permit fees
a. on a straight line basis
b. by reference to the stage of completion
c. upon collection of the fee
d. when the significant risks and rewards are transferred to the customer
_____________________ 5. Which of the following qualitative characteristics is improved when
information is reported on a timely basis?

a. Relevance c. Understandability
b. Reliability d. a and b
_____________________ 6. It is a type of fund held by a government entity that is designated for special
purposes
a. General Fund c. Trust Fund
b. Special Fund d. Fiduciary Fund
_____________________ 7. Which of the following financial statements is unique to a government entity?

a. Balance Sheet
b. Statement of Cash Flows
c. Statement of Comparison of Budget and Actual Amounts
d. Statement of Changes in Equity
_____________________ 8. The taxable event for Value added tax (VAT) is the
a. undertaking of a taxable activity
b. earning of taxable income
c. movement of dutiable goods or services across the customs boundary
d. any of these
_____________________ 9. Which of the following does not properly describe the budget process used
in the Philippines?

a. Bottom-up Budgeting
b. Top-down Budgeting
c. Zero-based Budgeting
d. Non-incremental Budgeting
_____________________ 10. Entity B enters into a long-term contract to provide services. The outcome
of the transaction can be estimated reliably and the progress on the contract can be measured with
sufficient reliability. According to the PPSAS, how should Entity B recognize revenue from the
contract?
a. On a straight line basis over the contract term
b. by reference to the stage of completion of the contract at the reporting date
c. Full recognition of contract price upon completion of the contract
d. Only to the extent of costs that are expected to be recovered

_____________________ 11. Responsibility Accounting requires all of the following except?

a. separate books of accounts to segregate controllable and non-controllable costs


b. identification of responsibility centers
c. distinction between controllable and non-controllable costs
d. coding structure for responsibility centers
_____________________ 12. The Chief Accountant shall charge obligations incurred against available
allotment to ensure that
a. the NCA is sufficient to meet the disbursement needs
b. there are no unreleased appropriations
c. no overdraft is incurred
d. no excess allotment exists
_____________________ 13. It refers to the amount contracted by a duly authorized administrative
officer for which the government is held liable.
a. Appropriation c. Obligation
b. Allotment d. Disbursement
_____________________ 14. Which of the following government agencies will most likely be able to
obtain a disbursement authority in the form of Cash Disbursement Ceiling (CDC)?
a. BIR c. DFA
b. DPWH d. NFA
_____________________ 15. The receipt of an allotment is recorded by a government entity in the
a. RAOD c. RAPAL
b. ORS d. a and c
_____________________ 16. According to the GAM for NGAs, disbursements for salaries and wages shall
be supported by
a. Disbursement Vouchers c. Petty Cash Vouchers
b. Payroll d. Official Receipts
_____________________ 17. The receipt of an appropriation is recorded by a government entity in the
a. RAOD c. RAPAL
b. ORS d. a and c
_____________________ 18. The entry in the books of a government agency with foreign service post to
record the receipt of disbursement authority called the Cash Disbursement Ceiling (CDC) includes a
a. debit to Cash-Modified Disbursement System (MDS)
b. credit to Subsidy from National Government
c. credit to Cash-Constructive Income Remittance
d. debit to Subsidy from National Government
_____________________ 19. Expenditures to acquire long-term assets are most likely classified as
a. Personnel Services
b. Maintenance and Other Operating Expenses
c. Financial Expenses
d. Capital Outlays
_____________________ 20. A certification on the availability of allotment is required before a
disbursement of government funds is made. According to the GAM for NGAs, who shall issue this
certification?
a. Budget Officer c. Head of Agency
b. Chief Accountant d. Requisitioning Individual

_____________________ 21. Which of the following is not considered a financial asset?


a. Petty cash fund c. Accounts receivable
b. Investment in debt securities d. Prepaid assets

_____________________ 22. A cash shortage of a government entity is most likely recorded as a


a. debit to a receivable account
b. debit to a cash shortage or overage account
c. credit to miscellaneous income account
d. credit to a cash shortage or overage account

_____________________ 23. Dishonored checks are recorded by a government entity as


a. Notes receivable c. Accounts receivable
b. Other receivables d. Losses

_____________________ 24. The entry to record the replenishment of a petty cash fund of a government
entity is
a. Expense accounts xxx
Cash-Modified Disbursement System (MDS), Regular xxx
b. Expense accounts xxx
Petty Cash xxx
c. Expense accounts xxx
Cash-Collecting Officers xxx
d. Expense accounts xxx
Cash-Treasury/Agency Deposit, Regular xxx

_____________________ 25. Under this method of bank reconciliation statement preparation, the
unadjusted book and bank balances are brought to an adjusted balance that is reported on the
statement of financial position.
a. Bank to Book Method c. Adjusted Balance Method
b. Book to Bank Method d. All of these
_____________________ 26. Which of the following may be paid through the petty cash fund of a
government entity?
a. Rent worth P 12,000
b. Pantry supplies worth P 15,000
c. Office supplies worth P 20,000
d. None of these

_____________________ 27. Entity A maintains a petty cash fund. At any given point of time, the cash on
hand and the petty cash vouchers must be equal to the ledger balance of the petty cash fund, If
these are not equal, the difference is either shortage or overage. This system of handling petty cash
fund is called
a. Impress System
b. Fluctuating Balance System
c. Pretty Cash System
d. Imprest System

_____________________ 28. According to the GAM for NGAs, the establishment of a petty cash fund
a. requires the approval of the Head of Agency
b. requires the approval of the Chief Accountant
c. requires the approval of the President of the Philippines
d. does not require any formal approval because petty cash

_____________________ 29. The "Loans Receivable" account is most likely to be used in the books of
accounts of which of the following government agencies?
a. COA c. BTr
b. NIA d. All of these

_____________________ 30. Which of the following is not one of the characteristics of a derivative?
a. It requires no notional amount (or only a very minimal notional amount)
b. Its value changes in response to the change in an underlying.
c. It requires no initial net investment (or only a very minimal initial net investment)
d. It is settled at a future date

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