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4. Which of the following is not correct with regards to the sources of revenue and other receipts. a. Agencies may receive trade discounts, quantity discounts, or other reductions in the quoted price of assets for a variety of reasons. These reductions in price do not necessarily mean that the transaction is a nonexchange transaction. b. In a transaction where the entity may provide some consideration directly in return for the resources received, but that consideration does not approximate the fair value of the resources received, the entity may not determine whether there is a combination of exchange and nonexchange transactions. Each component of which is recognized separately. c. There are transactions where it is not immediately clear whether they are an exchange or a nonexchange transaction. In these cases, an examination of the substance of the transaction will determine if they are on exchange or non-exchange transactions. d. The sale of goods is normally classified as an exchange transaction. If, however, the transaction is conducted at a subsidized price, that is, a price that is not approximately equal to the fair value of the goods sold, that transaction falls within the definition of a nonexchange transaction. 5. The Department of Public Works and Highways (DPWH) received the Notice of Cash Allocation from the Department of Budget and Management amounting to P80 million for the construction ofan underground tunnel. The entry on the books of DPWH to record the receipt of the NCA for the construction of the underground tunnel includes: a. Cash-Modified Disbursement System (MDS), Special Account 80,000,000 Subsidy from National Government b. Construction in ProgressInfrastructure Assets 80,000,000 Cash-Modified Disbursement System (MDS), Special Account c. Subsidy from National Government Cash in BankLocal Currency 80,000,000 Bangko Sentral ng Pilipinas d. Construction in ProgressInfrastructure Assets 80,000,000 Subsidy from National Government 30,000,000 80,000,000 80,000,000 80,000,000 8. A collecting officer of Department of Agriculture receives a check on November 1, 2019 amounting to P2,800,000. On February 1, 2020, the payment is refused. Notice of dishonor has already given to the drawer and to each endorser. What is the entry to record the cancellation of deposited collections due to dishonored check? a. Other receivables 2,800,000 Cash-Treasury/Agency Deposit, Regular 2,800,000 b. Other receivables 2,800,000 Accumulated Surplus/(Deficit) 2,800,000 c. Cash-Collecting Officers 2,800,000 Other Receivables 2,800,000 d. Cash-Treasury/Agency Deposit, Regular 2,800,000 Cash-Collecting Officers 2,800,000 9. The following are Disclosure in the notes to the General Purpose Financial Statements, except: a. The existence and amounts of any advance receipts in respect of non-exchange transactions. b. The accounting policies adopted for the recognition of revenue from non-exchange transactions. c. For major classes of revenue from nonexchange transactions, the basis on which the fair value of inflowing resources was measured. d. The nature and type of major classes of bequests, gifts, and donations, showing separately major classes of goods in-kind received. 10. The Department of Budget and Management issues NonCash Availment Authority amounting to P1,200,000 to Department of Science and Technology to authorize non- cash disbursement to cover the liquidation of their actual obligations against available allotments. What is the entry to recognize the receipt of NCAA? a. Accounts Payable 1,200,000 Subsidy from National Government 1,200,000 b. Cash-Modified Disbursement System (MDS), Regular 1,200,000 Subsidy from National Government 1,200,000 c. Accounts Payable 1,200,000 CashModified Disbursement System (MDS), Regular 1,200,000 d. Cash-Modified Disbursement System (MDS), Regular 1,200,000 Accounts Payable 1,200,000 6. Below are samples of Public sector entities which may be recipients of services in-kind under voluntary or involuntary schemes operated in the public interest, except. Persons convicted of offenses may be required to perform community service for public sector entity. Lenders will sometimes waive their right to collect a debt owed by a public sector entity. Public schools may receive voluntary services from parents as teachers' aides or as board members. d. Technical assistance from other governments or international organizations. 7. Which of the following is not correct? a. Pledges do not meet the definition of an asset because the recipient entity is unable to control the access of the transferor to the future economic benefits or service potential embodied in the item pledged. Due to the many uncertainties surrounding services in-kind, including the ability to exercise control over the services, and measuring the fair value of the services, the entity is not required to recognize services in-kind as revenue and as an asset. When an entity receives resources before a transfer arrangement becomes binding, the resources are recognized as an asset when they meet the definition and satisfy the criteria for recognition as an asset and recognized as a liability until the event that makes the transfer arrangement binding occurs. d. The portion of the loan that is repayable, along with any interest payments, is a non- exchange transaction and is accounted for. Which of the following is not a cash flow from operating activities? a. Notice of Transfer of Allocation to Agency RO/OU issued by the NGA Main Office to RO/OU and/or attached agencies through Government Servicing Banks. b. Payment of domestic and foreign loans. c. Remittance of taxes withheld not covered by TRA and other deductions. d. Cash receipts of interest income, rental income, and dividend income. Which of the following is incorrect? The Commission on Audit shall have exclusive authority, subject to the limitations in this Article, a. to define the scope of its audit and examination b. to establish the techniques and methods required therefor c. promulgate accounting and auditing rules and regulations d. preparation of the general purpose financial statements in accordance with the PPSAS Which of the following is not correct? The Commission on Audit, through the Government Accou nta ncy Sector: a. Consolidates the F55 and budget accountability reports of all NGAs and the BTr with COA's records to come up with an Annual Financial Report (AFR) for the NG as required in Section 4, Article IX-D of the 1987 Philippine Constitution. b. Maintains complete set of accounting books by fund cluster which is reconciled with the records of cash transactions maintained by the BTr. c. Maintains budget records showing the overall approved budget of the NG and its execution/implementation. d. Prepares other financial reports required by law for submission to oversight agencies