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Prelim Quiz 1 ANSWER KEY

This document contains a 20 question quiz on government accounting. The quiz covers topics like the definition of government accounting, the government agency responsible for promulgating accounting rules, the qualitative characteristics of financial reporting, the budgeting process, and key budgeting terms like appropriations, allotments, and obligations.

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73 views

Prelim Quiz 1 ANSWER KEY

This document contains a 20 question quiz on government accounting. The quiz covers topics like the definition of government accounting, the government agency responsible for promulgating accounting rules, the qualitative characteristics of financial reporting, the budgeting process, and key budgeting terms like appropriations, allotments, and obligations.

Uploaded by

ashley
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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COLLEGE OF BUSINESS AND ACCOUNTANCY

Mabini Extension, Cabanatuan City

Name: Score:
Year & Block: Date:

MAC 5 – Government Accounting


Prelim Quiz #1

1. 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.
a. Government accounting
b. Government reporting
c. Government auditing
d. Tax accounting

2. The GAM for NGAs is promulgated by the


a. Commission on Accounting (COA)
b. Commission on Audit (COA)
c. Board of Accountancy (BOA)
d. Bureau of Internal Revenue (BIR)

3. The Commission on Audit (COA) is responsible for


a. the formulation and implementation of the national budget with the goal of attaining the nation’s socio-
economic objectives.
b. receiving and keeping national funds and managing and controlling the disbursements thereof.
c. directly implementing the projects of the government.
d. promulgating accounting and auditing rules and regulations.

4. Which of the following is not charged with government accounting responsibility?


a. Commission on Audit
b. Bureau of Internal Revenue
c. Non-stock, non-profit private hospital
d. Department of Budget and Management

5. Which of the following qualitative characteristics may be sacrificed when reporting information on a timely
basis?
a. Relevance
b. Reliability
c. Substance over form
d. Faithful representation

6. According to the GAM for NGAs, information has this qualitative characteristic if it can be used to assist in
evaluating past, present or future events or in confirming or correcting past evaluations.
a. Feedback value
b. Predictive value
c. Materiality
d. Relevance

7. This refers to the comparability between the financial statements of different entities?
a. Inter-comparability
b. Intra-comparability
c. Horizontal comparability
d. Vertical comparability

8. When the substance of a transaction or event differs from its legal form, the entity should report the
transaction’s or event’s
a. substance
b. legal form
c. a trade-off between a and b
d. either a or b, based on their significance

9. The implication that users must be informed of the entity’s policies, changes to those policies, and the effects of
those changes refers to
a. Comparability
b. Completeness
c. Understandability
d. Reliability

10. In the financial reporting system of the national government, to which of the following shall an entity reconciles
its cash records?
a. Commission on Audit
b. Bureau of Treasury
c. Department of Budget and Management
d. Office of the President

11. Which of the following approaches to budget preparation provides the best internal control?
a. Incremental budgeting
b. Zero-sum budgeting
c. Top-down budgeting
d. Zero-based budgeting

12. This approach to budgeting requires the justification of items in the budget irrespective of whether they are new
or carried over from the previous year.
a. Zero-based budgeting
b. Bottoms-up budgeting
c. Incremental budgeting
d. Bottoms-down budgeting

13. Which of the following is correct regarding zero-based budgeting?


a. Several parties participate in the budget preparation starting from the lowest levels of the government to the
highest levels.
b. All zeroes in the budget are omitted.
c. All proposed programs and expenditures in the upcoming year must be new. Programs and expenditures in
the previous year should never be carried over to the next year.
d. The current year’s budget is formulated without regard to the previous year’s budget.

14. Which of the following would most likely comes first in the budget process?
a. Budget accountability report
b. President’s enactment of the budget
c. Presentation to the Office of the President
d. Budget Call from the DBM

15. Which of the following would most likely comes last in the budget process?
a. Budget accountability reports
b. Allotment
c. Disbursements
d. Performance review

16. Entity A, a government entity, receives authorization to disburse funds not to exceed ₱1B in a specified period.
This event can be described as
a. Notice of Cash Allocation
b. Allotment
c. Appropriation
d. Adontknowcation

17. Entity A, a government entity, receives notice that out of its ₱10B approved budget for the year, Entity A can
incur obligations up to ₱4B in the first quarter. This event can be described as
a. Notice of Cash Allocation
b. Allotment
c. Appropriation
d. Amnotsurecation

18. Entity A, a government entity, receives notice that for the current year, the maximum amount it can spend on
maintenance and other operating expenses is ₱10B. This event can be described as
a. Notice of Cash Allocation
b. Allotment
c. Appropriation
d. Budgetication

19. After receiving its obligational authority amounting to ₱4B, Entity A enters into binding agreements for the
eventual payments of a total sum of ₱3B. The “₱3B” event can be described as
a. Disbursement
b. Allotment
c. Disbursement authority
d. Obligation

20. It is a part, segment, unit or function of a government agency, headed by a manager, who is accountable for a
specified set of activities.
a. Responsibility Accounting
b. Responsibility Center
c. Budget Center
d. Call Center

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