MISCELLANEOUS TRANSACTIONS

1. A journal entry to record depreciation expense of machinery includes:

a. A credit to depreciation machinery and equipment

b. A debit to accumulated depreciation - machinery

c. A credit to machinery

d. A debit to accumulated surplus/ (deficit)

ANSWER: D (VELOSO, Marie Venice J.)

2. To determine the value of bad debts, the _______________ is used.

a. Income Statement Approach

b. Statement of Financial Performance Approach

c. Percent and Aging of Accounts Receivable Method

d. Percent of Sales Method

ANSWER: C (CANILLO, Lyle Archie P).

3. Which of the following statements are incorrect regarding adjusting entries?

a. Unreleased commercial checks at the end of the year shall not be reverted back to the cash
accounts.

b. Adjusting entry should be made involving earned revenues not yet recognized as assets and
income at the end of the accounting period.

c. If applicable, adjustment for reversal of impairment losses should be made.

d. "Petty Cash" account should be credited whenever no replenishment could be made at the end
of the year due to lack of funds.

ANSWER: A (DAYO, Donnes M.)

DISBURSEMENTS

1. Statement 1: These are obligations incurred by the agency which include both amount actually
paid and those incurred and recorded as liabilities to be paid in the future.
Statement 2: It is referred to as a commitment that encompasses possible future liabilities based
on current contractual agreement.

Statement 3: Payments made for the obligations incurred by the agency by cash or check.

Which statements in correct order, define Expenditures and Disbursements respectively?

a. S1 and S2

b. S1 and S3

c. S3 and S1

d. S2 and S3

ANSWER: B (INOC, Laury Jane L.)

2. Who will certify the availability of allotment / budget for obligation?

a. Chief Accountant

b. Head of the Requesting Unit

c. Budget Officer or Head of Budget Unit

d. Head of Agency

ANSWER: C (ACRUZ, Judy Ann)

3. No funds shall be disbursed, and no expenditures or obligations chargeable against any

authorized allotment shall be incurred or authorized in any department, office or agency without
first securing the certification of its ______________ as to the availability of funds and the
allotment to which the expenditure or obligation may be properly charged.

a. Head of Agency

b. Treasurer

c. Chief Accountant

d. Secretary

ANSWER: C (PORRAS, Joyce Ethel M.)

4. Who can incur or authorize the incurrence of expenditures or obligations in excess of

allotments released by the DBM Secretary for their respective departments, offices and
agencies?

a. Head of Agencies

b. Head of bureaus
c. Heads of departments

d. none of the above

ANSWER: D (AMORA, Christian John Elias C.)

5. Which of the following is not a classification of Expenditure?

a. Entity incurring the obligation

b. Transfer of cash advance from one accountable officer to another

c. Object of expenditures

d. Obligational authority and cash transactions arising from fund releases

ANSWER: B (LIGUTOM, Chessa Alenel C.)

6. The Cash Disbursement Ceiling is an authority issued by DBM to Department of Foreign

Affairs (DFA) and Department of Labor and Employment for what use?

a. To utilize their income collected/retained by their Program/Activity/Project (PAP) to cover

their operating requirements, which may or may not exceed the released allotment to the said
post?

b. To utilize their income collected/retained by their Foreign Service Posts (FSPs) to cover all
expenses incurred, but not to exceed the released allotment to the said post.

c. To utilize their income collected/retained by their Program/Activity/Project (PAP) to cover

their operating requirements, which may or may not exceed the released allotment to the said
post?

d. To utilize their income collected/retained by their Foreign Service Posts (FSPs) to cover their
operating requirements, but not to exceed the released allotment to the said post.

ANSWER: D (AMPALAYA, Francis Niel)

7. In section B of the Obligation Request and Status, who will sign to certify the availability of
allotment?

a. Head of Requesting Office

b. Head of Originating Office

c. Head of Accounting Unit

d. Head of Budget Unit

ANSWER: D (LAJOT, Anne Juliet V.)

8. A subsidiary record to monitor a particular obligation shall be maintained by_________

a. Budget Division/Unit in Section C of the ORS

b. Head of the Requesting or Originating Office in Section A of the ORS

c. Head of Budget Division/Unit in Section B of the ORS

d. Accounting Division/Unit in Section C of the ORS

ANSWER: A (ROSALES, Nestor Jr. G.)

9. Adjustment of obligation incurred after the processing of the claim by the _________
Division shall be made through the use of __________?

a. Accounting; RAOD

b. Budget; NORSA

c. Accounting; NORSA

d. Budget; RAOD

ANSWER: C (PALER, Jessa Gaile A.)

10. The following are modes of disbursement in the government except:

a. MDS checks and commercial checks

b. Notice of Transfer of Allocation (NTA)

c. Non-cash Availment Authority (NCAA)

d. Treasury Single Account (TSA)

ANSWER: B (DIOLA, Angelie L.)

11. The following are the modes of disbursement in the government except:

a. by check

b. Treasury Single Account (TSA)

c. Advances to Debit account (ADA)

d. Non-Cash Availment Authority (NCAA)

ANSWER: C (ROSERO, Dianne)

12. RCI/RADAI shall be prepared _________

a. daily by the Cashier

b. monthly by the Cashier

c. daily by the Accounting Division/Unit

d. monthly by the Accounting Division/Unit

ANSWER: A (RIO, Lyndon Earl P.)

13. The amount of cash advance granted to an officer or employee shall not exceed
___________________.

a. to an amount of 100,000.

b. maximum cash accountability covered by his/her bond.

c. minimum cash accountability covered by his/her bond.

d. his/her annual salary.

ANSWER: B (ARCILLA, Jolly M.)

14. To whom shall advances for payroll be granted for payment of salaries, wages, honoraria,
allowances and other personnel benefits of officials and employees?

a.Budget Officers

b.Chief Accountant

c.Regular Disbursing Officers

d.Cashier

ANSWER: C (PAGAY, Clarice D.)

15. What should be maintained by the Disbursing Officer to monitor cash advance/payroll,
current operating expenses, and special purpose/time bound undertakings?

a. Record of Disbursement

b. Report of Cash Disbursement

c. Cash Disbursement Record

d. Cash Disbursement Journal

ANSWER: C (ENCILA, Rutchel Ann P.)

16. Cash advances for operating expenses of government units without complete set of books of
accounts

a. includes field/expansion/satellite offices under the central/regional/district offices

b. may be granted to cover such offices' MOOE/authorized expenses

c. shall be granted to duly designated or appointed Requesting Officer

d. shall cover such offices' one month worth requirement for MOOE/authorized expenses to
finance their operations

ANSWER: B (SY, Clarinda Noreen)

17. In a cash advance for travel, a ___________ shall be prepared by the officers/employees
concerned and submitted to the Accounting Division/Unit with appropriate SDs as basis for JEV
preparation.

a. Disbursement Voucher

b. Disbursing Voucher

c. Liquidation Report

d. Liquidating Report

ANSWER: C (LAMORIN, Tricia)

18. The report of _____ shall serve as the ______ report of the cash advance granted to the
_____ officer.

a. Liquidation; Ledger; Accounting

b. Liquidation; Liquidation; Accounting

c. Disbursement; Ledger; Disbursing

d. Disbursement; Liquidation; Disbursing

ANSWER: D (VALLES, Fritze Ann L.)

19. In accounting entries for disbursement out of Petty Cash, when do you NOT credit Petty
Cash?

a. in recording the return of unused PCF

b. in reducing PCF

c. in recording establishment of PCF

d. in record unreplenished petty cash at the end of the year

ANSWER: C (BRANZUELA, Rhea Mae)

20. In case the petty cash custodian ceases or resigns to be the custodian of funds, any ______
shall be refunded and all _______ together with the original supporting documents shall be
surrendered to the Accounting Unit.
a. invoices; Petty cash vouchers

b. excess cash; Disbursement vouchers

c. excess cash; petty cash vouchers

d. disbursement vouchers; petty cash vouchers

ANSWER: C (AZUCENA, Joyce Kay)

21. How many months may an accounting officer in a government unit without a complete set of
books of accounts be granted for authorized petty and other miscellaneous expenses to finance
their operating requirements?

a. One month

b. Two months

c. Three months

d. None of the above

ANSWER: D (LEGASPI, Lyle Philip P.)

22. Cash overage discovered by the auditor that cannot be satisfactorily explained by the
disbursing officer shall be forfeited in favor of the government and an official receipt shall be
issued by the collecting officer or cashier. How shall it be taken up?

a. As a Receivable

b. As Advances to Special Disbursing Officer

c. As a Miscellaneous Income

d. None of the above

ANSWER: C (LEDA, Ma. Fatima C.)

23. When will the depository bank consider a check stale?

a. If it has been outstanding for over six months from date of issue or as prescribed.

b. If it has been outstanding for over six months from date of issue and as prescribed.

c. If it has been outstanding for over six years from date of issue or as prescribed.

d. If it has been outstanding for over six years from date of issue and as prescribed.

ANSWER: A (MENDOZA, Lara M.)

24. How do we recognize the settlement of disallowance?

a. Cash-Treasury Agency/Agency Deposit, Regular Cash-Collecting Officer

b. Cash-Collecting Officer Recievables-Disallowances/Charges

c. Recievables-Disallowances/Charges Accumulated Surplus/Deficit

d. Cash-Collecting Officer Cash-Treasury Agency/Agency Deposit, Regular

ANSWER: B (DEMISNERO, Mary Grace E.)

25. Overpayment could be avoided with the institution of proper controls but some could not be
avoided because of _____.

a. Fraud

b. Banking system

c. Built-in procedures

d. Human error

ANSWER: C (ASPACIO, Carmel Fraulaine D.)

26. What is the system by which no check is issued to the payee in payment of government
obligations, but instead, the current account number of the payee in the bank where the
government maintains a deposit, shall be obtained by the accounting unit?

a. Checkless Payment System

b. Advice to Debit Account

c. Advice to Credit Account

d. Checkless and Cashless Payment Scheme

ANSWER: B (AMORA, Shiela Mae)

27. Under the Property and Inventory Accounting System, the agency shall issue a duly
approved Purchase Order based on the approved _______ and after accomplishing all the
required procedures adopting a particular mode of procurement.

a. Deposit Slip

b. Sales Invoice

c. Purchase Request

d. Stock Ledger

ANSWER: C (BORDARIO, Mary Eleanor)

28. Under the perpetual inventory method, purchase of supplies and materials held for stock
regardless of whether or not they are consumed within the accounting period, shall be recorded
as ______. a. Merchandise Inventory

b. Supplies and Materials Inventory

c. Purchases Account

d. Inventory Account

ANSWER: D (CONDINO, Karla Marie P)

29. During the construction period, property, plant and equipment shall be classified and
recorded as "____________" with the appropriate asset classification.

a. Inventory

b. Investment Property

c. Construction in Progress

d. Property, Plant and Equipment

ANSWER: C (ESTEL, Jeb Dorothy C.)

30. During the Construction period, the property, plant, and equipment shall be classified and
recorded as:

a. Construction in Process with appropriate asset account

b. Construction in Progress with appropriate asset account

c. Construction in Process without appropriate asset account

d. Construction in Progress without appropriate asset account

ANSWER: B (MONTEJO,Maria Glemour C.)

NBC

1.) FY 2015 Continuing Appropriations for _______________ under R.A. 10651 are available
for release of SARO until December 31, 2016.

a. MOOE and PS

b. MOOE and CO

c. MOOE and FinEx

d. PS, MOOE and CO

ANSWER: B (VERAR, Alyssa Veniz )

2. This refers to an organizational entity directly receiving, and capable of administering, its own
funds.

a. Centrally-Managed Items

b. Agency

c. Operating Units

d. Ombudsman

ANSWERS: C (TORRENUEVA, Lovely Mae P.)

3. The _____________ is the authority issued by DBM to NGAs or GOCCs (through BTr) to
record the payment made by the lending institution direct to the suppliers, consultants, and
contractors of the project.

a. Budget Execution Document

b. Non-Cash Availment Authority

c. Notice of Transfer Allocation

d. Notice of Cash Allocation

ANSWER: D (DIAZ, Princess Baby Jane)

4.) NCA issued to Regular MDS Sub-account is valid until the last working day of the

a. Following month

b. Second month of the quarter

c. Third month of the quarter

d. None of the above

ANSWER: C (SAAVEDRA, Mary Shanice)

RCA

1.) Which statement is not a major change in the Revised Chart of Accounts?

a. Expanded account code structure from three (3) digits to eight (8) digits
b. New accounts were provided for the implementation of the Philippine Public Sector
Accounting Standards like the account title Financial Assets Held for Trading (1 02 01 010)
which was created in compliance with IPSAS 28-30.

c. Some accounts were deleted since these accounts are for use by local government units or
government-owned and/or controlled corporations, while other accounts are no longer
applicable to national government agencies like the Cash in Vault ( 101) which is for LGUs use.

d. Some account titles were changed to provide additional and revised description/title of
accounts for proper implementation of the new and revised accounting policies.

ANSWER: D (LABAJOSA, Madeleine G.)

2.) When is COA Circular No. 2014-003 dated and who are responsible for the conversion of the
accounts?

a. January 1, 2014; Heads of Accounting units and Heads of Budget Office units

b. January 24, 2014; Chief Accountants and Budget Officers

c. April 15, 2014; Heads of Accounting units and Heads of Budget Office units

d. April 30, 2014; Chief Accountants and Budget Officers

ANSWER: C (SEGUISABAL, Shela Mie D.)

3. The following are new account titles in the Revised Chart of Accounts, except for?

a. Financial Asset Held for Trading

b. Special Education Tax Receivables

c. Allowance for Impairment - Investments in Treasury Bills-Local

d. Finance Lease Receivables

ANSWER: B (BORROMEO, Carmel Therese P.)

4. What is the fourth group in the account code structure of COA Revised Chart of Accounts?

a. General Ledger Contra-Accounts

b. Major Account Group

c. Account Group

d. General Ledger Accounts

ANSWER: D (MONTESEVEN, Kimberly Y.)

 PPSAS

1. Creation of the Public Sector Accounting Standards Board (PSAcSB)

a. COA Resolution No. 2008-012 dated Oct. 10, 2008 COA Office Order No. 2010-118 dated Feb
19, 2010 COA Office Order No. 2013-622 dated Oct. 1, 2013

b. COA Resolution No. 2008-013 dated Oct. 10, 2008 COA Office Order No. 2010-118 dated Feb
19, 2010 COA Office Order No. 2013-622 dated Oct. 1, 2013

c. COA Resolution No. 2008-012 dated Oct. 10, 2008 COA Office Order No. 2010-118 dated Feb
19, 2010 COA Office Order No. 2013-622 dated Oct. 10, 2013

d. COA Resolution No. 2008-012 dated Oct. 10, 2008 COA Office Order No. 2010-118 dated Feb
18, 2010 COA Office Order No. 2013-622 dated Oct. 1, 2013

ANSWER: A (MONLEON, Daisy Jane F.)

2. Contingent liability arises when there is ________ obligation to be confirmed by a future

event that is outside the control of the entity and contingent asset arises when the inflow of
economic benefits or service potential is _______.

a. possible, probable

b. possible, possible

c. probable, probable

d. probable, possible

ANSWER: A (MIRAL, Cheenee B.)

3. Which is covered by the scope of PPSAS?

a. requirements dealing with transactions and other events in general purpose financial reports

b. general purpose financial reports of all public sector entities other than Government Business
Enterprises (GBEs)

c. all NGAs, LGUs and GOCCs not classified as GBEs

d. All of the above

ANSWER: D (TABEFRANCA, Nicolle)