Basic Concepts *.

The process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof is a. Government accounting. c. Government accounting. b. Budgetary accounting. d. Obligation accounting. RP P! "#$% * &t is a systematic recording, classifying, summarizing governmental transactions in terms of money and other resources consistent 'ith accounting and budgetary la'. a. (ocal government. c. Government budgeting. b. )ational government. d. Government accounting. RP P! #*$+

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ongressional authorization in the form of a la' to ma8e payments out of the public treasury for specific purposes after compliance 'ith certain conditions. a. !ppropriation. c. Budgeting. b. !llotment. d. Obligation. RP P! "#$% !n authorization by the legislative body in the form of la's for payments to be made 'ith funds of the government for specified purpose is a. !llotment. c. Budget. b. !uthorization. d. !ppropriation. RP P! #*++ !n authorization from a legislative body to ma8e payments out of the )ational Treasury under specified conditions and for specific purposes a. ash disbursement ceiling. c. !ppropriations. b. !llotment. d. Budget. RP P! #*9$ !n authorization from a legislative body to ma8e payments out of the )ational Treasury under specified conditions and for specific purposes. a. !llotment. c. Budget. b. !ppropriations. d. 2und. RP P! "#9% &t provides for the ceiling or the ma-imum e-tent an agency can commit the resources of the government in the performance of its functions a. Obligation accounting. c. 2und accounting. b. !llotment. d. ommercial accounting. RP P! "#$: 2ormal authorization issued by the ,epartment of Budget and ;anagement to a government agency to incur obligations up to a specific amount. a. ash disbursement ceiling. c. /upplementary budget. b. !llotment advice. d. !ppropriation. RP P! #*$# ash disbursement ceiling released by the Office of the Budget and ;anagement to agencies of the national government for < "$+: are made available for payment of "$+: obligations for current operating e-penditures pursuant to (O& )o. $6* up to a. ,ecember :", "$$+:. b. ;arch :", "$+:. c. 2ebruary "*, "$+=, last day of closing the boo8s of account and submission of preliminary trial balance. d. >une :#, "$+= RP P! "#+:

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*. *. One of the basic features in government accounting is a. The accounting of money collected is not separate and independent from the accounting of the use or disbursement of said money collected. b. !s to the basis of accounting, it is either cash or accrual basis not a combination of both. c. Budgetary and real accounts are used and estimates are recorded and accounted for. d. ,epreciation of fi-ed assets is considered an overhead e-pense. RP P! #*++ Governmental accounting systems of state and local governmental entities ./(Gs0 should be organized and operated on 'hich of the follo'ing bases1 a. Proprietary fund. c. Governmental fund. b. 2iduciary fund. d. 2und. Gleim ! feature of government accounting that provides for the ceiling or ma-imum amount an agency can spend or incur in the performance of its functions. a. Budgeting accounting. c. Obligation accounting. b. Responsibility accounting. d. 2und accounting. RP P! "#$% ! ma3or difference bet'een government and commercial accounting is that a governmental unit should a. !l'ays establish and maintain complete self4balancing account for each fund. b. 5se only the cash basis of accounting. c. )ot record depreciation e-pense in any of its funds. d. 5se only the modified accrual basis of accounting. RP P! "#+6, "#+* The revie' and approval of the national budget by the ongress of the Philippines and the formulation of an appropriate bill a. !uthorization. c. 7-ecution. b. Preparation. d. !ccountability. RP P! "#$%

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!n amount arising from an act of an administrative official 'hich binds the government to the immediate or eventual payment of a sum of money. a. !llotment. c. Obligation. b. !ppropriation. d. Budget. RP P! "#9%

a. b.

Philippine onstitution *. Pursuant to the Philippine onstitution, no money shall be paid out of the Treasury e-cept in pursuance of a. !n appropriation made by la'. c. President?s directive. b. !n allotment. d. Program. RP P! "#$: *. !s specifically provided for in the )e' onstitution, no money shall be paid out of the )ational Treasury e-cept in pursuant of a a. Budget. b. President?s directive or letter of instruction .(O&0. c. 2und. d. !ppropriation. e. ash allotment. RP P! "#9+ The ne' constitution provides that @)o money shall be paid out of the treasury e-cept in pursuance to appropriations made by la'.A Bhich of the follo'ing disbursement does not reCuire appropriation before it is paid. This is sometimes called @non4budgetary disbursements.A a. /alaries of government personnel. b. onstruction of government building. c. &nterest payment from sin8ing fund. d. Repair and maintenance of government facilities. RP P! #*+= The Philippine onstitution provides that a. Bhere there occurs a budget deficit, the President of the Philippines shall have the po'er to levy and impose ta-es in order to meet the deficit. b. G!!P as 'ell as sound management and fiscal administration shall be observed in the utilization of government funds, provided they do not contravene e-isting la's and regulations. c. The local chief e-ecutive is principally responsible for the fiscal administration of the local government. d. The ongress may not increase the appropriations recommended by the President of the Philippines for the operation of the Government as specified in the budget. RP P! "#$% The follo'ing statements related to the Philippine onstitution of "$+%D

ongress may increase or decrease the appropriation recommended by the President for the operation on the government as specified in the budget. !ll appropriations, revenue or tariff bills, or bills authorizing an increase in the public debt shall originate e-clusively in the Eouse of Representatives. )o la' shall be passed authorizing any transfer of appropriations from one agency or office of the government to another. ,iscretionary funds appropriated for particular officials need not be supported by vouchers. )one of the statements is false. c. Only t'o statements are false. Only one statement is false. d. Three statements are false. RP P! "#$"

Government 2unds *. This is a sum of money or other government resources set aside for the purpose of carrying out specific activities or attaining certain ob3ectives in accordance 'ith specific regulations, restrictions, or limitations, and constitutes an independent fiscal and accounting entity. a. ash disbursement ceiling. c. !ppropriations. b. 2und. d. Budget. RP P! #*9$ *. The term @fundA as used in government or fund accounting usually denotes a .an0 a. /um of money designated for a special purpose. .10 b. (iability to other governmental units. c. 2iscal and accounting entity having a set of self4balancing accounts. RP P! #*+% d. !ppropriation authorized by the legislature for use of an agency, bureau or office. !s used in government or in fund accounting, the term @fundA usually denotes .10 a. !n appropriation authorized by the legislature for use of an agency, bureau or office. b. ! sum of money designated for a special purposeF c. ! fiscal and accounting entity having a set of self4balancing accounts. d. ! liability to other governmental units. e. The eCuity of a municipal corporation. RP P! #*+" Government funds classified according to purpose for 'hich they may be used are a. General 2unds and Trust 2unds. c. /pecial 2unds and Revenue 2unds. b. General 2unds and /pecial 2unds. d. Revenue 2unds and Trust 2unds. RP P! #*++ ! fund, 'hich, by legislative action, segregates specified revenues for limited purposes a. /in8ing fund. c. Redemption fund. b. General fund. d. /pecial fund. RP P! "#$:

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! fund in 'hich the assets are administered by the Government in a fiduciary capacity. a. General 2und. c. /pecial 2und. b. Trust 2und. d. Revolving 2und. RP P! "#9% Bhat are the rules on the use of government funds1 a. )o obligations shall e-ceed allotment. c. !ll of these. RP P! #*$+ b. )o allotment shall e-ceed appropriation. d. )o liCuidation shall e-ceed obligation.

Programs, Plans H Pro3ects *. The functions and activities necessary for the performance of ma3or purpose for 'hich a government entity is established a. Resources. c. !ppropriation. b. Program. d. Performance budget. RP P! #*$+ *. !s used in government budgeting, it comprises all the functions and activities devoted to the accomplishment of a ma3or purpose for 'hich a government entity is established a. Budget. c. Pro3ect. b. Ob3ect. d. Program. RP P! "#$: ! subdivision of a program covering a homogenous group of activities and describing the 'or8 to be done. a. Program. c. Plan. b. Pro3ect. d. Budget. RP P! "#$: ! document 'hich sets out the chief measures that the government intends to ta8e in order to achieve defined goals of development. a. Plan. c. Pro3ect. b. Ob3ect. d. 2inancial statement. RP P! "#$: &n budgeting, a term freCuently used to refer to the ob3ects of means 'hich must be used to accomplish a specified ob3ect or pro3ect a. 7-penses. c. Pro3ect. b. &ncome. d. Resources. RP P! "#$:

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Budgets *. ! financial plan 'hich serves as a frame'or8 of accounts a. !ppropriation act. d. Obligational authority. b. !llotment reCuest. e. ash disbursement ceiling. c. Budget. RP P! "#+# *. 2inancial plan for the general e-penditures of government a. /pecial budget. c. /upplemental budget. b. ,eficiency budget. d. General budget.

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! plan or program of activities together 'ith costs of underta8ing them to meet goals or targets 'hich emphasize on e-pected results. a. Obligations. c. Performance budget. b. /upplemental budget. d. !ll of these. RP P! #*$+ ! financial plan to augment the general budget a. ,eficiency budget. c. /pecial budget. b. General budget. d. /upplemental budget.

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Gero base budget is a. !n authorization issued to allo' the use of allotments to the last centavo .or zero balance0 b. ! budget 'here only additional reCuirements of the end4user need 3ustification. c. /ystematic consideration of all agency programs, pro3ects and activities 'ith the use of defined ran8ing procedures. d. !ny techniCue or procedure for developing numerical factors of converting 'or8 units to Cuantitative statements of manpo'er. e. !n authorization to incur e-penditures based on appropriation provided by the ;inistry of Budget. RP P! #*+"

Government Agencies *. The agency responsible 'ith the duty to 8eep the general accounts of the Government, promulgate accounting rules and regulations, and to submit to the President and to ongress an annual financial report of the Government including its subdivisions a. ,epartment of 2inance. b. ,epartment of Budget and ;anagement. c. Bureau of Treasury. d. ommission on !udit. RP P! "#$: *. 5nder the )e' onstitution of the Philippines, the agency that 8eeps the @general accountsA of the government is a. ;inistry of Budget. d. ommission on !udit. b. Bureau of Treasury. e. )ational !ccounting Office. c. ;inistry of 2inance. RP P! "#9+

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The chart of accounts for government agencies shall be prescribed by the a. Budget ;inistry c. ommission on !udit b. ;inistry of 2inance d. Office of the President.

a. entral Ban8 of the Philippines. b. Bureau of Treasury. RP P! #*9$

c. ommission on !udit. RP P! #*+= d. Office of the Budget and ;anagement.

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The functions of the ommission on !udit do not include a. ,esigning, preparing, and approving the accounting systems of government agencies. b. Ieeping the general accounts of the government. c. Promulgating accounting and auditing rules and regulations. d. 7-amining, auditing, and settling all accounts of the government. RP P! #*$" This Office in the ommission on !udit shall be responsible for preparing the annual financial report of the Government, its subdivisions, agencies and instrumentalities, including government4o'ned or controlled corporations and other financial andFor statistical reports as may be reCuired by the ommission. a. The Program !udit Office. c. The !dministrative /ervice. b. The !ccountancy /ervice. d. The (egal /ervice. RP P! "#9$ This Office in the ommission on !udit shall be responsible for e-ercising supervision and control over the implementation of auditing and accounting rules and regulations in departments, bureaus and offices of the )ational Government. a. The )ational Government !ccounting ,ivision. b. The orporate !udit Office. c. The /ystems and Training /ervice. d. The )ational Government !udit Offices. RP P! "#9$ The agency of government 'hich plays a pivotal role in the cash operations of the national government a. Bureau of &nternal Revenue. b. ,epartment of Budget and ;anagement. c. Bureau of Treasury. d. ommission on !udit. RP P! "#$: Bhich agency of the government is in charge of the accounting receipt of the proceeds of foreign and domestic loans as 'ell as the servicing thereof1 a. Bureau of Treasury. c. Office of the Budget and ;anagement. b. entral Ban8 of the Philippines. d. )one of the above. RP P! #*+9 The agency of the government in charge 'ith the accounting of the receipt of the proceeds of foreign and domestic loans as 'ell as the servicing thereof is

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Chart of Accounts *. &n accordance 'ith the provisions of the )e' onstitution of the Philippines, the /tandard Government hart of !ccounts is prescribed for use of a. )ational government units. b. )ational and local governments. c. )ational, local and corporate government units. d. )ational and local governments and government corporations, including government financial institutions such as the entral Ban8, Philippine )ational Ban8, (and Ban8 and Philippine Jeterans Ban8. e. )ational and local governments and government corporations e-cept financial institutions 'hose accounts are prescribed by the entral Ban8 of the Philippines. RP P! "#+# *. oding is the systematic assignment of letters, symbols or numbers, such as 949#4"## for ash in Treasury, to distinguish items 'ithin a given classification from each other. &ts purpose is to a. 2acilitate orderly arrangement and classification of accounts. b. 2acilitate location of accounts in subsidiary ledgers. c. 2acilitate location of accounts in general ledgers. d. omply 'ith reCuirements of mechanized accounting. RP P! "#+# 5nder the ne' onstitution of the Philippines, one of the po'ers of the ommission of !udit is @to 8eep the general account of the government.A One of this account is a. &nvested /urplus .$=0 b. )ational learing !ccount K ash 7armar8 for ash ,isbursement !uthority .$$49#:0 c. urrent /urplus K 5nappropriated .$60 d. ash K Treasury !ccount urrent for deposit .9#49##0 RP P! "#+: 5nder the ne' onstitution of the Philippines, one of the po'ers of the ommission on !udit is to 8eep the general account of the Government. The general account referred to is a. )ational learing !ccount K ash ,isbursement eiling .$$46##0 b. &nvested /urplus .$=40 c. urrent /urplus 5nappropriated .$640 d. ash K Treasury !ccount urrent K TB ,isbursement .9#49#60 e. )ational income account RP P! #*+"

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The account @ urrent /urplus 5nappropriatedA .!ccount $60 represents that part of current surplus 'hich has not been earmar8ed through legislative appropriation. 2or government agencies operating under the general fund, this account is a. Iept in the boo8s maintained in the ommission on !udit. b. harged at year4end for income earned by the agency. c. Iept on the boo8s of the agency itself, and is charged for the total e-penditures of the agency. RP P! "#9$ d. redited in the corollary entry capitalizing the cost of eCuipment purchased. The account @Obligations &ncurredA .!ccount +60 reflects the liability of a government agency for e-penses chargeable against the current year?s allotments. a. &t is charged for the amount of obligations paid. b. &t is a temporary account, and has to be closed at year4end to !ccounts Payable4 5nliCuidated Obligations .!ccount +"4=##0 c. The year4end balance in this account represents the outstanding obligations and is carried for'ard to the beginning of the follo'ing year. d. &t is a controlling account, the debits of 'hich are sho'n in a subsidiary ledger called the ReCuest for Obligation of !llotments. RP P! "#9$ The account credited 'hen supplies previously ordered are received in a government unit is a. !ppropriations control. c. 7ncumbrances control. b. 7-penditures control. d. Budget control. RP P! #*$#

c. To ta8e up the long4term liability, a corollary entry is made charging &nvested /urplus and crediting (oans Payable. d. The (oans Payable account includes liabilities arising from contracts for the purchase of eCuipment to be delivered in the follo'ing year. RP P! "#9$ *. This account, used in government accounting, records the amount of orders placed, contracts a'arded, services received or other transactions 'hich are legally earmar8ed or established against an allotment during the current year. a. Budget. d. General 2und. b. !ppropriation authorized. e. Obligations incurred. c. !ppropriation allotted. RP P! "#+# Bhich of the follo'ing accounts is a budgetary account in government accounting1 a. Reserve for inventory of supplies. c. !ppropriations. RP P! #*$# b. 2und balance. d. 7stimated uncollectible ta-es. One of the follo'ing is not considered government incomeD a. Proceeds from loans and borro'ings. b. Government buildings. c. Grants and aids received from foreign governments. d. Ta-es.

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*. *. !ccounts Payable K 5nliCuidated Obligation .+"4=## are reverted to the current surplus unappropriated if the creditor is not paid by the government, pursuant to Rep. !ct. )o. :*6%. a. !fter ten years, the period of prescription of obligations. b. T'o years after the incurring of the obligation. c. !fter the end of the accounting period during 'hich the obligation 'as incurred. d. !fter the submissions of the final trial balance. RP P! "#+: &n government accounting, this account is used to record the amount of non4bonded, long4term indebtedness to domestic and foreign creditors. a. (oans payable. c. Public debt. b. Obligations payable. d. Guaranteed obligations. RP P! "#+# Bhich of the follo'ing statements pertaining to long4term indebtedness is not correct1 a. The @(oans PayableA account is used to record the amount of bonded and non4bonded indebtedness to foreign and local creditors for 'hich the )ational Government is directly to subsidiarily liable. b. Receipt of the proceeds of the loan is recorded by debiting ash and crediting &ncome. *.

Proceeds of borro'ing either from domestic or foreign sources are considered income of the national government because .10 a. !ll receipts of funds are deposited in the Bureau of Treasury. b. Government funds should be spent solely for public purposes. c. &t forms part of the current surplus unappropriated of the government 'hich should be budgeted and appropriated. RP P! #*$" d. &t should al'ays be used for capital outlay, hence it should be considered income. Proceeds of borro'ing either from domestic or foreign sources are considered income of the national government because .10 a. !ll receipts of funds are deposited in the Bureau of Treasury. b. &t forms part of the current surplus unappropriated of the government 'hich should be budgeted and appropriated. c. &t should al'ays be used for capital outlay, hence it should be considered as income. d. !ccounting rules and regulation so reCuires. RP P! "#+: &n government accounting, the control accounts for revenue and e-penditures are found in a. The budget and operation controls.

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b. Both the balance sheet and budget and operation accounts. c. )ational clearing accounts. d. The balance sheet accounts. *. 7-penditures in the government are broadly classified into a. urrent operating. c. Obligations incurred. b. Obligation of allotment. d. apital outlays.

d. >ournal and analysis of obligations, and 3ournal of ,isbursement by ,isbursing officer. RP P! "#$% *. 5sed by the national government that provides uniform accounting for accruing and liCuidating obligations. The boo8s used in this phase of accounting are the general 3ournal, the 3ournal and analysis of obligations, the 3ournal of disbursements by disbursing officers, the 3ournal of 'arrants issued, and the 3ournal of chec8s issued. a. !dvice of allotment. c. !ll of these. b. Obligation of allotment. d. Obligation accounting system. RP P! #*$+ 2inal trial balance in government accounting consists of a. ombination of Trial Balance of Totals and Trial Balances. b. Trial Balance of Totals. c. Trial Balance of Balances. d. !d3usted Trial Balance.

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Bhich of the follo'ing accounts of a government agency is closed out at the end of the fiscal year1 RP P! "#+$, RP P! #*$# a. 2und balance. c. !ppropriations. b. Reserve for encumbrance. d. Jouchers payable.

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Accounting Records and Financial Statements *. Payment of obligations by Treasury urrent !ccount for !gencies .T !!0 chec8s are recorded in a special boo8 called a. >ournal of Barrant &ssued. b. >ournal of ,isbursing Officer c. >ournal of hec8s &ssued by ,eputized ,isbursing Officer. d. >ournal and !nalysis of Obligations. RP P! "#+: *. The voucher system of accounting is being used by the national government. The subsidiary ledger for obligations incurred is .10 a. @TA account b. The voucher itself. c. The inde- card sho'ing the name of creditor, debit, credit balance, etc. d. )one of the above. RP P! #*+9 )ational government agencies are using the voucher system of accounting. The subsidiary ledger for obligations incurred is .10 a. The voucher itself. b. The reCuest for obligation of allotment. c. &nde- card sho'ing the name of creditor, debit, credit, balance, etc. d. @TA account. RP P! #*+= To obligate and pay the payroll of the month from cash advance of a disbursing officer, 'ill be recorded in a. >ournal and analysis of obligation. b. >ournal of disbursement by disbursing officer. c. >ournal of chec8s issued by ,eputized ,isbursing Officer. RP P! #*+=

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This financial statement is submitted by government accountants to the ommission on !udit. &t sho's the e-cess .deficit0 of income over e-penditures for the fiscal period then ended. a. /tatement of changes in financial position. b. Preliminary trial balance. c. /tatement of operations. d. 2inal trial balance. RP P! "#$%

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Accounting Entries *. The boo8s of Bureau have an account .code 949#46:#0 ash K 2oreign Ban8s, 'hich is used to record the cash transactions 'ith foreign ban8s. Be credit this account for a. Proceeds of cash loans made available by foreign leading institutions. b. ash deposits on receipt of allotment advices. c. redit advices received from foreign ban8s. d. ,ebit advices received from foreign ban8s. e. !llotments received from the ;inistry of 2inance. RP P! "#+# *. &n government accounting, the revenue control account is increased 'hen recording a. The budget. c. The closing of budgetary accounts. b. The appropriations. d. Property ta-es. RP P! #*$# Bhen the budget of a governmental unit is adopted and the estimated revenues e-ceed the appropriation, the e-cess is a. ,ebited to reserve for encumbrances. c. ,ebited to fund balance. b. redited to reserve for encumbrances. d. redited to fund balance. RP P! "#++

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*. *. ! corollary entry is necessary in government accounting to record .10 a. Obligations for rental of facilities. c. Purchase of a @pa3eroA 3eepney. b. Purchase of supplies. d. Travelling e-pense. RP P! #*$# &n government accounting, a corollary entry is necessary to record the purchase of a. !utomotive spare parts. c. ;ercedez Benz cars. RP P! #*+$ b. Office supplies. d. ;aterials for maintenance of eCuipment. &n national government accounting, corollary 3ournal entry is not used in .10 a. Purchase of machinery. b. Obligations for rental of facilities. c. ash shortage by disbursing officer. d. Purchase of supplies charged to appropriation.

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Bhen estimated revenue account of a government unit is closed out at the end of the fiscal year, the e-cess of revenues over estimated revenues is a. ,ebited to fund balance. b. ,ebited to reserve for encumbrances. c. redited to fund balance. d. credited to revenue for encumbrances. RP P! "#+6 5nobligated balance of appropriation allotment for calendar year "$+: are reverted to the current surplus unappropriated in case of general appropriation at the end of a. 7very Cuarter. b. The first semester K >uly :", "$+:. c. The year K ,ecember :", "$+:. d. The first Cuarter of the ensuing year K ;arch :", "$+=. RP P! "#+: &n the boo8 of the national agencies using @special accounts under the general fund,A the 3ournal entry to record the appropriation is RP P! "#+: a. )ational learing !ccount $$ !ppropriations !llotted $# b. urrent /urplus 5nappropriated $6 urrent /urplus !ppropriated $: c. )o 3ournal entry. d. )one of these &n a decentralized accounting procedures bet'een a entral Office and Regional Office in government agencies, the 3ournal entry to record the release of suballotment 'ith cash disbursement ceiling in the boo8s of the Regional Office is RP P! #*+= ,ebit redit a. Receivable sub4allotment 'ith , +49"4"$$46 -!ppropriation !llotted #4$# -b. )ational learig !ccount K , #4$$46## -!ppropriation !llotted #4$# -c. Payable, sub4allotment 'ith , +4+"4"$$46 -!ppropriation !llotted #4$# -d. ;emorandum entry The corollary entry at the time an obligation is incurred for the purchase of eCuipment is a. 7Cuipment for General Public /ervices +49$4"## urrent /urplus 4 !ppropriated +4$:4:"# b. 2urniture H 7Cuipment in Transit +49$4$## &nvested /urplus K Purchases +4$=4""#

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orollary entry in government accounting is reCuired to supplement another entry covering the same transaction. This corollary entry is reCuired in a. Rental of building leased by a national government agency. b. /alaries of casual or permanent employees of the government. c. Purchase of supplies and materials charge to appropriation. d. Traveling e-penses of officials outside their official station. e. )one of the above. RP P! "#+: &n government accounting, it is not correct to a. Regularly ta8e up depreciation. b. !dopt a combination of the cash basis and accrual basis. c. orrect a debit error by a debit entry but in the negative. d. 7mphasize on correctness, so reports are @certified correct.A *.

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&n case of general funds, in the boo8 of the depository agency, ash4Treasury !ccount urrent .9#49##0 a real account, is a. losed at the end of the accounting period to a surplus account because the balance of this account is not o'ned by or does not insure the benefit of said agency. b. )ot closed to the surplus account because this is a real account and under the G!!P only nominal accounts are closed to surplus account at the end of the accounting period. c. 7liminated at the time the ommission on !udit prepares a consolidated final trial balance because this account is a reciprocal account. d. losed to account @)ational learing !ccount K $$A in the boo8 of the ommission on !udit. RP P! "#+:

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c. 2urniture H 7Cuipment urrent /urplus K 5nappropriated d. 2urniture H 7Cuipment in Transit Obligation &ncurred *.

+49$46## $4$64:"# +49$4$## #4$6 RP P! "#+:

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&n the boo8 of Regional Office, the >ournal entry to transfer income to the entral Office in a decentralized accounting is RP P! #*+= ,ebit redit a. &ncome #4$" -)ational learing !ccount #4$$ -b. &ncome #4$" .--0 Receivable K income remittance +49"4"$$4: -c. &ncome #4$" -!ppropriation !llotted #4$# -d. &ncome #4$" -urrent /urplus 5nappropriated +4$6 -The entry to close the used cash disbursement ceiling at the end of the accounting period in the boo8 of the Bureau of Treasury is RP P! #*+= ,ebit redit a. ash K other boo8s +49#4:## -)ational learing !ccount +4$$ -b. )ational learing !ccount +4$$ -ash !gency !ccount urrent hec8 ,isbursement +49#49#: -c. )ational learing !ccount ash , +4$$49#: .--0 )ational learing !ccount ,! +4$$4+## .--0 d. )ational learing !ccount , #4$$46## -!ppropriation !llotted #4$# -!t year end, in case of special account in the general funds, the 3ournal entry to close the income account in the bac8 of the ommission on !udit is RP P! #*+= ,ebit redit a. &ncome #4$" -urrent /urplus K 5nappropriated +4$6 Lb. &ncome #4$" -)ational learing !ccount +4$$ Lc. &ncome #4$" .--0 urrent /urplus 5nappropriated +4$6 -d. ;emorandum entry

&n the boo8s of the Bureau of Treasury, the entry to close the used , at the end of the accounting period is RP P! "#$: a. ash K other boo8s )ational learing !ccount b. )ational learing !ccount ash , )ational learing !ccount ,! c. )ational learing !ccount , !ppropriations !llotted d. )ational learing !ccount ash !gency !ccount urrent hec8 ,isbursement ! government has 3ust levied M"=#,### in ta-es and estimates that M"=,### of the ta-es 'ill never be collected. The 3ournal entry of the government at the time the ta-es are levied isD !. Ta- revenue M"=#,### Ta- receivable M"=#,### B. Ta- receivable M"=#,### Ta- revenue M"=#,### . Ta- revenue M"6%,### !llo'ance for uncollectible ta-es M"=,### Ta- receivable M"=#,### ,. Ta- receivable M"=#,### Ta- revenue M"6%,### !llo'ance for uncollectible ta-es M"=,### &! #*$= &J4:6

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Financial Statements *. Bhen reporting for governmental units, 'hat type of costs should be presented in the financial statements a. Eistorical cost. c. urrent appraisal. b. osts ad3usted for price level changes. d. Replacement cost. RP P! "#++ *. Bhen reporting for governmental units, 'hat type of costs should be presented in the financial statements1 a. Eistorical. b. Eistorical ad3usted for price4level changes. c. urrent appraisal. d. Eistorical and current presented in t'o separate columns. RP P! "#+6

. R7N5&R7,D The basis on 'hich governmental accounting systems of /(Gs reCuired an accounting system that ma8es it possible to ."0 present fairly and 'ith full disclosure the funds and activities of /(Gs in conformity 'ith G!!P and .60 determine and demonstrate compliance 'ith finance4related legal and contractual provisions. To satisfy these ob3ectives, /(G accounting systems should be organization on a fund basis. ! fund is defined as @a fiscal and accounting entity 'ith a self4balancing set of accounts recording cash and other financial resources, together 'ith all related reliabilities and residual eCuities or balances, and changes therein, 'hich are segregated for the purpose of carrying on specific activities or attaining certain ob3ectives in accordance 'ith special regulations, restrictions, or limitationsA ./G!/ "0 ,&/ 5//&O)D !ns'ers .0, .0, and .0 are incorrect because . !ns'er .,0 is correct. Ta- receivable is debited for the full amount of the ta-es levied. Only the portion of the ta-es levied that is e-pected to be collected is credited to ta- revenue. The uncollectible portion is credited to an allo'ance for uncollectible ta-es. !ns'er .!0 is incorrect because ta- receivable should be debited and ta- revenue credited. !lso, only the portion of the ta-es levied that is e-pected to be collected should be credited to ta- revenue, 'ith the remainder credited to an allo'ance for uncollectible ta-es. !ns'er .B0 is incorrect because only the portion of the ta-es levied that is e-pected to be collected should be credited to ta- revenue, 'ith the remainder credited to an allo'ance for uncollectible ta-es. !ns'er . 0 is incorrect because ta- revenue and allo'ance for uncollectible ta-es are credited and ta- receivable is debited.