Review questions: Review questions: 1.
1. For nFor numbeumbers 1-3 rrs 1-3 refer tefer to the folo the followinlowing inforg informatiomation:n: The
The duly duly approved approved ABM ABM for for the the F F !"13 !"13 showed showed the the following:following: Allotment Allotment Class Class Appropriatio Appropriatio n n Not Needing Not Needing Clearance
Clearance Needing Needing ClearanceClearance # #$$ !!11%%""""""%%"""""" 11&&%%""""""%%"""""" 33%%""""""%%"""""" M M''''(( 11))%%""""""%%"""""" 11""%%""""""%%"""""" ))%%""""""%%"""""" * *aappiittaal l ''uuttllaayy 1133%%""""""%%"""""" 11""%%""""""%%"""""" 33%%""""""%%"""""" T
Total otal # +,%"""%""" # +,%"""%""" # 3&%"""%""" # 3&%"""%""" # 11%"""%"""# 11%"""%""" The
The orresorresponding ponding otie otie of *of *ash ash Alloation Alloation /*A0 /*A0 was was issued issued by tby the he epartment epartment of Budof Budget get andand Management.
Management. 'ne
'ne of of the the transatitransations ons during during the the 2rst 2rst uarter uarter of of the the year year inluded inluded the the payment payment of of salaries salaries andand allowanes
allowanes thru thru ash ash advanes:advanes: $
$aallaarriiees s aannd d 44aaggeess ++%%&&))""%%"""""" #
#((55AA ))""""%%"""""" 4
4iitthhhhoollddiinng g TTaa66 7788""%%"""""" 5
5eettiirreemmeennt t aannd d 99iiffe e nnssuurraannee ++))!!%%88))"" #
#aagg--BB;; 11))""%%"""""" #
#hhiill<<eeaalltthh !!))""%%"""""" *
*rreeddiit t ==nniioonn 11))""%%"""""" 1.
1. <ow m<ow muh auh allotmllotment ent shoulshould be pd be posteosted in td in the alhe allotmelotment ont olumn lumn for #for #$>$> A.
A. 1&%"""%"""1&%"""%""" *. 3%"""%"""*. 3%"""%""" B
B. . ))%%33))""%%"""""" . . !!11%%""""""%%"""""" !.
!. <ow muh <ow muh should be should be posted in posted in the allotmthe allotment olumn of ent olumn of registrregistry for M'y for M''( and *'( and *'>'> A. A. !"%!"%)&")&"%""%""" ? " ? 1!%1!%3)"3)"%""%""""
B.
B.
1"%"""%""" ? )%"""%"""1"%"""%""" ? )%"""%"""*.
*.
1"%"""%""" ? 1"%"""%"""1"%"""%""" ? 1"%"""%""" . . 18%18%1""1""%""%""" ? " ? ,%),%)""%""%"""""" 3.3. <ow muh <ow muh should be should be posted in posted in the obligatthe obligation olumn of ion olumn of the rthe registry for egistry for payment of payment of salaries salaries andand Allowanes. Allowanes. A A.. 1111%%""++""%%"""""" *. *. 11!!%%""""""%%""""""
B.
B.
3%788%!)"3%788%!)" . )%3)"%""". )%3)"%""" +.+. The governThe government ageny ment ageny remitted remitted its ounterits ounterpart in the part in the salary salary ontributions. ontributions. 4hat is 4hat is the prthe proformaoforma entry to reord suh transation>
entry to reord suh transation> A A.. 55eettiirreemmeennt t aannd d 99iiffe e nnssuurraanne e **oonnttrriibbuuttiioonn 6666 # #aagg--BB; ; **oonnttrriibbuuttiioonn 6666 # #hhiillhheeaalltth h **oonnttrriibbuuttiioonn 6666 ( (******oonnttrriibbuuttiioonn 6666 * *aassh h @@MM$$% % 55eegguullaarr 6666 B
B.. 55eettiirreemmeennt t aannd d 99iiffe e nnssuurraanne e **oonnttrriibbuuttiioonn 6666 #
#aagg--BB; ; **oonnttrriibbuuttiioonn 6666 #
#hhiillhheeaalltth h **oonnttrriibbuuttiioonn 6666 (
(******oonnttrriibbuuttiioonn 6666 *
*aassh h @ @ iissbbuurrssiinng g ''eerr 6666 *
*.. uuee ttoo ;;$$$$ 6666
uuee ttoo ##aagg--BB;; 6666
uuee ttoo ##hhiillhheeaalltthh 6666 ' 'tthheerr##aayyaabblleess 6666 * *aasshh@@ TT%% MM$$ 6666 .. uuee ttoo ;;$$$$ 6666 uuee ttoo ##aagg--BB;; 6666
uuee ttoo ##hhiillhheeaalltthh 6666 '
'tthheerr##aayyaabblleess 6666
*
). The Ageny paid a (*' bill amounting to #+"%"""% inluding ta6 of 3%""". The entry to reord this transation would be:
A. (letriity +"%"""
*ash @ T% M$ +"%""" B. Aounts #ayable +"%"""
*ash @ T% M$ 38%"""
ue to B5 3%"""
*. Memo entry only. . o entry reuired.
7. n what registry should allotment for purhases of T euipment be reorded> A. 5A'-#$
B. 5A'-M' *. 5A'-*' . 5A'-F(
For uestions 8-11% refer to the following problem:
Allotment in the amount of #)%)""%""" was released by the BM with the orresponding *A. The release was for the onstrution of an oe building. The '$T awarded the ontrat to AB* *onstrution *ompany for a ontrat prie of #)%"""%""". AB* paid the reuired ash bond while '$T issued a heC to over the mobiliDation fee. The billings are shown as follows:
1st Billing 3)E ompleted /1"E retention fee0
!nd Billing &"E ompleted /1"E retention fee0
Final Billing 1""E ompleted /1"E retention fee0 8. <ow muh should be posted in the obligation olumn of 5A'-*'>
A. )%"""%""" *. +%8)"%""" B. )%)""%""" . )%!!)%""" &. 4hat is the ournal entry to reord the mobiliDation fee>
A. Advanes to *ontrators !)"%""" *ash @ M$% 5egular !)"%""" B. Advanes to *ontrators 8)"%""" *ash @ M$% 5egular 8)"%""" *. Advanes to *ontrators !)"%""" #erfGBidGBB# !)"%""" . Advanes to *ontrators 8)"%""" #erfGBidGBB# 8)"%"""
,. For the 2rst billing% how muh should be redited to ;uarantee $eurityGeposits #ayable> A. )""%""" *. 1,!%)""
B. 18)%""" . !7!%)""
1". <ow muh should be debited to the *onstrution in #rogress aount on the seond billing> A. !%+8)%""" *. !%!)"%"""
B. 1%8)"%""" . !%1)"%"""
11. <ow muh should be redited to Advanes to *ontrator in the seond billing> A. #338%)"" *. #7""%"""
B. #!7!%)"" . # 1)"%"""
1!. Ageny A* sold a 7"E depreiated motor vehile whih had an original ost of #3""%""" for #!""%""". The proeeds shall be deemed automatially appropriated for the purhase of replaement higher apaity vehile worth #)""%"""% net of appliable ta6. The ageny subseuently reeived an *A of #)""%""" for the purhase of the said vehile. 4hat is the entry to reord the reeipt from the disposal of the motor vehile>
A. *ash @ *olleting 'er !""%"""
ue toBTr !""%""" B. *ash @ *olleting 'er !""%"""
;ain on $ale of isposed Assets !""%""" *. *ash @ *olleting 'er !""%"""
Aumulated epHn. @ ehiles 1)"%"""
Motor ehiles 3""%""" ue to BTr )"%"""
. *ash @ *olleting 'er !""%"""
Aumulated epHn. @ ehiles 1)"%"""
Motor ehiles 3""%""" ;ain on $ale of isposed Assets )"%"""
13. Ageny I have an obligation for euipment per purhase order amounting to #&""%""". $ubseuently% the ageny liuidates the euipment auired in full. The auisition was provided from the #rourement $erie. The entry to reord this transation would be:
a. Memorandum entry in 5A'*'
b. 'e (uipment &""%"""
ue from ;A &""%""" . $ubsidy from ational ;ovHt &""%"""
*ash @ M$% 5egular &""%""" d. Aounts #ayable &""%"""
*ash @ M$% 5egular &""%"""
1+. The ageny obligates the purhase of euipment per purhase order amounting to #!""%""". The entry for this transation would be:
A. Memo entry only
B. 'e (uipment !""%""" Aounts #ayable !""%""" *. 'e (uipment !""%""" *ash-ational Treasury% M$ !""%""" . 'e (uipment !""%""" $; !""%"""
1). 4hat is the proforma entry to reord the anellation of a stale M$ heC>
A. *ash @ M$ 66
Aounts #ayable 66
B. *ash @ M$% 5egular 66
*ash @ *olleting 'er 66
*. *ash @ M$% 5egular 66
Aumulated $urplus 66
. *ash @ *olleting 'er 66
Aumulated $urplus 66
For items 17 and 18
A ash advane was set up to over the payment of salaries of employees in the amount of #&"%""". The ash advane was liuidated during the year. A weeC after the payment% the booCCeeper found out that the employees were overpaid by #!%""". $ubseuently% the booCCeeper noti2ed the onerned employees of said overpayment and reuested for the refund.
17. 4hat is the ournal entry to reord the remittane of the overpayment to the ational Treasury> a. $ubsidy from ational ;overnment !%"""
*ash @ M$% 5egular !%""" b. $ubsidy from ational ;overnment !%"""
*ash @ *olleting 'er !%""" . *ash @ M$% 5egular !%"""
ue from 'ers and (mployees !%""" d. $ubsidy from ational ;overnment !%"""
ue from 'ers and (mployees !%""" 18. 4hat is the ournal entry to reord the overpayment>
a. ue from 'ers and (mployees !%"""
<aDard #ay !%"""
b. ue from 'ers and (mployees !%"""
$alaries and 4ages - 5egular !%""" . *ash @ *olleting 'er !%"""
<aDard #ay !%"""
d. *ash @ *olleting 'er !%"""
$alaries and 4ages @ 5egular !%"""
1&. f an ageny does not have the authority to use the inome earned% what entry must be prepared to reord the olletion of hospital fees>
A. *ash @ *olleting 'er 66
Aounts 5eeivable 66
B. *ash @ *olleting 'er 66
Aumulated $urplus 66
ue to B5 66 . *ash @ *olleting 'er 66
$; 66
1,. The following entry was reorded as an adustment for the prepayment of rent::
5ent (6penses 66
#repaid 5ent 66
4hat was the original entry prepared>
A. 5ent (6pense 66
*ash @ M$% 5egular 66
B. #repaid 5ent 66
*ash @ M$% 5egular 66
*. #repaid 5ent 66
*ash @ isbursing 'er 66
. 5ent (6pense 66
*ash @ isbursing 'er 66
!". Ageny J is a ational ;overnment Ageny with an *A from the BM for M''( amounting to #)%"""%""". 'f the total amount% #+%!8)%""" was obligated and &"E was paid. The remaining !"E was reogniDed as aounts payable. <ow muh is the un-obligated balane that should be shown in the 5egistry for M''(>
A. 8!)%""" *. 1%"""%""" B. &!)%""" .&))%"""
!1. =sing the data in number !"% how muh is the utiliDation rate of the obligation>
A. !"E *.7&.+E
B. &7E . &"E
!!. Ageny A had the following aount balanes for the year !"1+: *urrent Assets 1"%"""%""" nvestment and Fi6ed
Assets ,"%"""%""" 'ther Assets )%"""%""" 9iabilities 1&%"""%""" *ontingent 9iabilities )%"""%""" *ontingent Assets 3%"""%""" etermine the Aumulated $urplus for the year !"1+:
A.
1")%"""%""" *. &8%"""%""" B. &)%"""%""" . &!%"""%"""!3. The following data were taCen from the aounting reords of Ageny on eember 31% !"1+ /in million pesos0:
*A reeived 1)"
5efund of e6ess ash advane ) $alaries and wages @ 5egular
#ay
))
A*'M !
#(5A 1"
Traveling e6pense @ 9oal 1
(letriity !"
5ent (6pense &
'e $upplies (6pense +
The unutiliDed portion of the otie of *ash Alloation amounted to !)%"""%""". 4hat is the net inome over e6pense on eember 31% !"1+>
a. 1)%"""%""" b. )"%"""%""" . +)%"""%""" d. !"%"""%"""
!+. The following data were taCen from the $tatement of nome and (6penses and the *omparative Balane sheet as well as various ash transations for the year ended eember 31% !"13: /amount in million pesos0
et nome over e6penses )"" nrease in 4ithholding Ta6
#ayable
7
epreiation @ 'e (uipment
) erease in Aounts #ayable 3"
erease in $upplies nventory !3
<ow muh ash is reeived from operating ativities>
A. +7"%"""%""" *.)7!%"""%""" B. ))!%"""%""" . +,"%"""%""" !). The movement in ash of Ageny A is shown below:
#roeeds from sale of marCetable stoCs and bonds
1!%"""%""" nvestment in ;'** 8%"""%""" 5emittane of Ta6es withheld not overed
by T5A
!%1""%""" nter-ageny transfers /ue From0 )8"%""" 5eeipt of *A from BM 1&%)""%""" *ash reeipts from sale of goods or
rendition of servies
3%+""%""" <ow muh is the ash is derived from operating ativities>
A. 1,%!3"%""" *. 1&%)""%""" B. !+%!3"%""" . 13%38"%""" !7. 4hih of the following are ommonly reuired to be dislosed>
. *onsolidation priniples
. Aounting for long-term investments
. Adoption of poliy on inreasing bene2t entitlements of the program members . All hanges in lassi2ation of aounts
a. % % only *. and only
b. and only . All must be dislosed in the otes to F$
n answering numbers 1-1"% refer to the following hoies:
a. The 2rst statement is true but the seond statement is false. b. The 2rst statement is false but the seond statement is true. . Both statements are true.
d. either of the statements is true.
1. $1: ;eneral inome aounts of the government enompass all ta6es imposed on inome% properties and use or sale of goods and servies% ta6es on international trade and transations and other ta6es inluding 2nes and penalties.
$!: $pei2 inome aounts of the government inlude all types of revenue or inome generated by agenies in the e6erise of their administrative and regulatory funtion% inome from publi entities or inome from investments and inome from grants and donations.
!. $1: A prelosing trial balane is prepared after adusting entries are reorded in the general ournal and posted to the general ledger and shows the adusted balanes of all aounts.
$!: The statement of 2nanial position is prepared from information taCen diretly from the prelosing trial balane.
3. $1: The Budgetary aounts onsist of appropriations% obligations and disbursements. $!: Budgetary aounts are reorded in the agenyHs booCs of aounts.
+. $1: The *A is the share of the Ageny in the inome of the ational ;overnment.
$!: The otie of *ash Alloation reeived by the ageny is net of the )E ta6 for #ersonal $ervies and &E ta6 for Maintenane and 'ther 'perating (6penses and *apital 'utlays to be withheld by the ageny.
). $1: The entry to reord the auisition of a 26ed asset using the prourement arm of the BM will inlude a debit to the orresponding 26ed asset auired.
$!: 4hen a government ageny deides to purhase supplies from outside suppliers% the entry to reord the reeipt of the supplies will most liCely inlude a redit to *ash-ational Treasury% M$. 7. $1: Aording to Administrative 'rder o. 11,% the responsibility for the 2sal operations of
oes and agenies of government is hereby delared to reside primarily with the respetive <eads of eah oe% ageny% government-owned or ontrolled orporation and loal government unit.
$!: n aordane with said Administrative 'rder% eah and every oe is mandated to strengthen its internal ontrol system in oordination with the epartment of Finane.
8. $1: #lan of 'rganiDation% an element of internal ontrol% omprises the organiDational struture and the stang omplement that enable an organiDation to arry out its funtions.
$!: Another element% *oordinate Methods and Measures refer to the systems of authoriDation% poliies% standards% aounting systems and proedures and reports used by the ageny to ontrol its operations and resoures and enable the various units to meet its obetives.
&. $1: Allotment refers to an authoriDation made by law or other legislative enatment% direting the payment of goods and servies out of government funds under spei2ed onditions or for speial purposes.
$!: Appropriation is the authoriDation issued by the BM to the ageny whih allows it to inur obligations.
,. $1: Finanial e6penses suh as banC harges% interest e6penses% ommitment harges and other related e6penses are inluded in the Maintenane and 'ther 'perating (6penses.
$!: *ost of ending inventory of supplies and materials shall be omputed using the moving average method.
1". $1: The entry to reord the auisition of a 26ed asset using the prourement arm of the BM will inlude a debit to the orresponding 26ed asset auired and a redit to ue from ;As.
$!: 4hen a government ageny deides to purhase supplies from outside suppliers% the entry to reord the reeipt of the supplies will most liCely inlude a redit to *ash-ational Treasury% M$. 11. The following statements pertain to the preparation stage of the budget yle. Find the orret
order.
. The agenies defend their proposed budgets before a tehnial panel of BM.
. At the beginning of the budget preparation year% the BM issues the ational Budget *all to all agenies.
. The departments and agenies are tasCed to pair up with ivil soiety organiDations during the preparation of their ageny budget proposals.
. An (6eutive 5eview Board deliberates over the programs and proets of the ageny as per the submitted budget proposal.
A. % % % *. % % % B. % % % . % % %
1!. The following statements pertain to the e6eution stage of the budget yle. Find the orret order.
. BM issues guidelines on the release and utiliDation of funds.
. BM prepares an Allotment 5elease #rogram to set a limit for allotments issued to an ageny and on the aggregate.
. Allotments are either released by BM to all agenies omprehensively through the ABM and individually via $A5'.
. BM issues a disbursement authority in the form of *As and in speial ases% the on-*ash Availment Authority /*AA0 and on-*ash isbursement *eiling /**0.
A. % % % *. % % % B. % % % . % % %
13. That publi oe is a publi trust demands that a higher set of general obetives be established? a step beyond the internal ontrol praties that prevail in private setor organiDations. <ene% the internal ontrol in the publi setor must onform to 2ve general obetives. 4hih of the following is not one>
A. (nsure eonomial% eient and eKetive operations B. *omply with laws and regulations
. $afeguard assets and limit liabilities
1+. f the Jobel Museum% a not-for-pro2t organiDation% reeived a ontribution of historial artifats% it need not reogniDe the ontribution if the artifats are to be sold and the proeeds are used to A. #urhase buildings to house olletions
B. 5epair e6isting olletions
*. Auire other items for olletions. . $upport general museum ativities
1). $ave #hilippine 4ildlife% a researh organiDation reated to protet nearly e6tint speies of fauna% reeived a #)""%""" ontribution from Ms. 9ee. Ms. 9ee stipulated that her donation be used to purhase new omputer euipment for $ave #hilippine 4ildlife researh staK. The ontribution was reeived in August of !"13% and the omputers were auired in Lanuary !"1+. For the year ended eember 31% !"13% the #)""%""" ontribution should be reported by $ave #hilippine 4ildlife on its
A. $tatement of 2nanial position as deferred revenue B. $tatement of ativities as temporarily restrited revenue *. $tatement of ativities as deferred revenue
. $tatement of ativities as unrestrited revenue
17. TaCe *are% a voluntary health and welfare organiDation% reeived the following ontributions in !"1+:
. #)"" from donors who stipulated that the money not be spent until !"1).
. #1%""" from donors who stipulated that the ontributions be used for the auisition of euipment% none of whih was auired in !"1).
4hih of the above events inreased temporarily restrited net assets for the year ending eember 31% !"1+>
A. only. B. only.
*. Both and . . either nor .
18. A hospital should report earnings from endowment funds that are restrited to a spei2 operating purpose as
A. ;eneral fund revenues% when e6pended. B. (ndowment fund revenues% when e6pended. *. ;eneral fund revenues% when reeived.
. (ndowment fund revenues% when reeived.
1&. 4hih of the following statements pertaining to ot-for-pro2t organiDation is true>
A. n preparing the statement of ash ows for a not-for-pro2t organiDation% ash ontributions that are restrited for long-term purpose are lassi2ed as investing ativities.
B. n <ospital aounting% restrited funds are not available unless the Board of iretors remove the restritions.
*. A not-for-pro2t organiDationHs statement of 2nanial position should report the net hanges for the net assets that are unrestrited% temporarily restrited and permanently restrited.
. Medial enter reeived an unrestrited beuest of #1)"%""" in !"1". This beuest should be reorded as non-operating revenue.
1,. 4hih of the following individuals is the $eretary of the epartment of Finane>
A. Alan #urisima *. Florenio Abad
B. #roeso Alala . *esar #urisima
!". The following agenies ontrol the release of allotments and notie of ash alloations% e6ept one:
A. epartment of Budget and Management B. Bureau of Treasury
*. *ommission on Audit
. All of the abovementioned agenies ontrol allotments and *As !1. The following are BMs responsibilities% e6ept one:
A. esign% prepare% and approve the aounting systems of government agenies. B. Neep the general aounts of the national government.
*. #resribe the forms% shedules of submission and other omponent of reporting system needed to aomplish and submit the reuired information
. Approve the ABM and issue allotments to agenies !!. The funtions of *'A inlude whih of the following>
. To e6amine% audit and settle all aounts pertaining to the reeipts and e6penditures of the national government and its subdivisions% onstitutional bodies% government-owned and ontrolled orporations% and nongovernmental entities reeiving subsidy from the
government.
.
To serve as an instrument for the meeting of national soio-eonomi and politial development goals.. To Ceep the general aounts of the government.
A. % % *. and only
B. and only . and only !3. The obetives of ;A$ inlude whih of the following>
. To simplify government aounting toward eventual omputeriDation. . To onform to F5$.
. To provide relevant periodi 2nanial statements.
. To serve as tool for managers and e6eutives for eKetive and eient monitoring of government ageny performane.
A. and only B. % % only *. % % % . % % only
