ACCOUNTING FOR GOVERNMENT /NGO

1 What is the highest legal basis of the New Government Accounting System (NGAS)?

a RA 9298 c COA Circular No. 2002-003

b 1987 Constitution of the Philippines d PD 1445

2 What is the basis of accounting under NGAS?

a Cash basis b Accrual basis c Modified accrual d Modified cash

3 Which is not a basic feature of NGAS?

a Straight-line depreciation c Corollary and negative entries

b Allowance for doubtful accounts d Perpetual inventory based on moving average

4 Which is prepared by government agencies covered by NGAS on a monthly basis rather than on a

quarterly basis?

a Trial balance b Balance sheet c Statement of income d Statement of cash flow

5 Under NGAS, the standard residual value of depreciable assets is equal to

a 10% of cost b Zero c P 1,000 d P 5,000

6 To encourage fiscal discipline, allotments are released by the DBM every

accounting?

a 2 months b 3 months c 4 months d 6 months

7 Which of the following statements refers to the government accounting feature known as obligation accounting

a It is based on the view that government fund is treated as the accounting entity

b Is is a system of prescribing the procedures for recording appropriations, allotments and obligations

c It provides for the ceiling or maximum amount an agency can spend or incur in the performance of

functions

d It requires government expenditures to be within the appropriation approved by the legislative body

8 Financial statements of noprofit organization included all of the following, except

a Statement of financial position c Statement of activities

b Statement of changes in equity d Statement of cash flows

9 Net assets restricted by the governing board of a non-government, not-for-profit organization are

reported as part of:

a Permanently restricted net assets c Unrestricted net assets

b Temporarily restricted net assets d Any of these, depending on the terms

10 Unconditional promise to give (pledges) are recognized as contribution revenue when

a The promise is received c The time or purpose restriction is satisfied

b The related receivable is collected d The future event bind the promisor occurs

TERMINOLOGIES:

1 A government official that disburses government funds beyond approved budget may be charged with

a Technical malversation c Estafa

b Money laundering d Graft and corruption

2 The activities necessary to perform a major purpose for which a government entity is established

a Program b Project c Resources d Internal control

3 It is a compound of program covering a homogenous group of activities that result in the accomplishment

of an identifiable output

a Resources b Program c Project d Expected results

4 The services, products or benefits accruing to the public estimated in terms of performance target.

a Resources b Program c Project d Expected results

5 The actual asset of the government agency such as cash, receivables, land and buildings.

a Resources b Program c Project d Expected results

6 A national budget designed wherein total estimated revenue is more than total estimated expenditures

a Supplemental budget b Balanced budget c Line item budget d Special budget

7 A national budget designed on the objects of expendture such as slaries and wages, traveling expenses, freight, supplies, materials and equipment

a Line item budget b Performance budget c Special b udget d Supplemental budget