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Review questions:
1. For numbers 1-3 refer to the following information:
The duly approved ABM for the F !"13 showed the
following:Allotment
ClassAppropriatio
nNot Needing
Clearance Needing Clearance
#$ !1%"""%""" 1&%"""%""" 3%"""%"""
M''( 1)%"""%""" 1"%"""%""" )%"""%"""
*apital 'utlay 13%"""%""" 1"%"""%""" 3%"""%""" Total #
+,%"""%""" # 3&%"""%""" # 11%"""%"""
The orresponding otie of *ash Alloation /*A0 was issued
by the epartment of Budget andManagement.
'ne of the transations during the 2rst uarter of the year
inluded the payment of salaries and allowanes thru ash
advanes:
$alaries and 4ages +%&)"%"""
#(5A )""%"""4ithholding Ta6 78"%"""
5etirement and 9ife nsurane +)!%8)"#ag-B; 1)"%"""
#hil
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). The Ageny paid a (*' bill amounting to #+"%"""% inluding ta6
of 3%""". The entry to reordthis transation would be:A. (letriity
+"%"""
*ash @ T% M$ +"%"""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'-#$B. 5A'-M'*. 5A'-*'. 5A'-F(
For uestions 8-11% refer to the following problem:Allotment in
the amount of #)%)""%""" was released by the BM with the
orresponding *A. Therelease was for the onstrution of an oe
building. The '$T awarded the ontrat to AB**onstrution *ompany for
a ontrat prie of #)%"""%""". AB* paid the reuired ash bond while'$T
issued a heC to over the mobiliDation fee. The billings are shown
as follows:
1st Billing 3)E ompleted /1"E retention fee0
!nd Billing &"E ompleted /1"E retention fee0
Final Billing 1""E ompleted /1"E retention fee08.
A. )%"""%""" *. +%8)"%"""B. )%)""%""" . )%!!)%"""
&. 4hat is the ournal entry to reord the mobiliDation
fee>A. Advanes to *ontrators !)"%"""
*ash @ M$% 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". A. !%+8)%""" *. !%!)"%"""B. 1%8)"%""" . !%1)"%"""
11. 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
agenysubseuently 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 to BTr !""%"""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 $ale of isposed Assets )"%"""
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13.Ageny I have an obligation for euipment per purhase order
amounting to #&""%""".$ubseuently% the ageny liuidates the
euipment auired in full. The auisition was providedfrom 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$% 5egular &""%"""1+. The ageny obligates the
purhase of euipment per purhase order amounting to #!""%""".
The
entry for this transation would be:A. Memo entry onlyB. 'e
(uipment !""%"""
Aounts #ayable !""%"""*. 'e (uipment !""%"""
*ash-ational Treasury% M$ !""%""". 'e (uipment !""%"""
$; !""%"""1). 4hat is the proforma entry to reord the anellation
of a stale M$ heC>
A. *ash @ M$ 66Aounts #ayable 66
B. *ash @ M$% 5egular 66*ash @ *olleting 'er 66
*. *ash @ M$% 5egular 66Aumulated $urplus 66
. *ash @ *olleting 'er 66Aumulated $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
foundout that the employees were overpaid by #!%""". $ubseuently%
the booCCeeper noti2ed theonerned 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 !%"""
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ue to B5 66. *ash @ *olleting 'er 66
$; 661,. The following entry was reorded as an adustment for the
prepayment of rent::
5ent (6penses 66#repaid 5ent 66
4hat was the original entry prepared>A. 5ent (6pense 66
*ash @ M$% 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. A. 8!)%""" *. 1%"""%"""B. &!)%""" .
&))%"""
!1. =sing the data in number !"% how muh is the utiliDation rate
of the obligation>
A. !"E *. 7&.+EB. &7E . &"E
!!. Ageny A had the following aount balanes for the year
!"1+:
*urrent Assets 1"%"""%"""nvestment and Fi6edAssets
,"%"""%"""
'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 netinome over e6pense on eember
31% !"1+>a. 1)%"""%"""b. )"%"""%""". +)%"""%"""d. !"%"""%"""
!+. The following data were taCen from the $tatement of nome and
(6penses and the *omparativeBalane 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
#ayable7
erease in ue from ;A )&
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epreiation @ 'e(uipment
)
erease in Aounts #ayable 3"
erease in $upplies nventory !3
A. +7"%"""%""" *.)7!%"""%"""B. ))!%"""%""" . +,"%"""%"""
!). The movement in ash of Ageny A is shown below:#roeeds from
sale of marCetable stoCsand bonds
1!%"""%"""
nvestment in ;'** 8%"""%"""
5emittane of Ta6es withheld not overedby T5A
!%1""%"""
nter-ageny transfers /ue From0 )8"%"""5eeipt of *A from BM
1&%)""%"""
*ash reeipts from sale of goods orrendition of servies
3%+""%"""
A. 1,%!3"%""" *. 1&%)""%"""B. !+%!3"%""" . 13%38"%"""
!7. 4hih of the following are ommonly reuired to be
dislosed>. *onsolidation priniples. Aounting for long-term
investments. Adoption of poliy on inreasing bene2t entitlements of
the program members. All hanges in lassi2ation of aountsa. % % only
*. and onlyb. and only . All must be dislosed in the otes to F$
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. $1: ;eneral inome aounts of the government enompass all ta6es
imposed on inome%properties and use or sale of goods and servies%
ta6es on international trade and transationsand other ta6es
inluding 2nes and penalties.$!: $pei2 inome aounts of the
government inlude all types of revenue or inome generatedby agenies
in the e6erise of their administrative and regulatory funtion%
inome from publientities 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
bewithheld by the ageny.
). $1: The entry to reord the auisition of a 26ed asset using
the prourement arm of the BM willinlude a debit to the orresponding
26ed asset auired.
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$!: 4hen a government ageny deides to purhase supplies from
outside suppliers% the entry toreord 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
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. $afeguard assets and limit liabilities1+. 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 toA. #urhase buildings to house
olletionsB. 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. Theontribution 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 itsA. $tatement of 2nanial position
as deferred revenueB. $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 endingeember 31% !"1+>A. only.B. only.*.
Both and .. either nor .
18.A hospital should report earnings from endowment funds that
are restrited to a spei2operating purpose asA. ;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
A. Alan #urisima *. Florenio AbadB. #roeso Alala . *esar
#urisima
!". The following agenies ontrol the release of allotments and
notie of ash alloations% e6ept
one:A. epartment of Budget and ManagementB. 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>
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. To e6amine% audit and settle all aounts pertaining to the
reeipts and e6penditures of thenational government and its
subdivisions% onstitutional bodies% government-owned andontrolled
orporations% and nongovernmental entities reeiving subsidy from
thegovernment.
. To serve as an instrument for the meeting of national
soio-eonomi and politialdevelopment goals.
. To Ceep the general aounts of the government.A. % % *. and
onlyB. 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 onlyB. % % only*. % % % . % %
only
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