Govacct Reviewer

Which of the following shall certify the
availability of allotment before Government entities and business

obligations can be incurred and entities use the same accounting
disbursements are made? Budget Officer treatment for all of the following
except?
All Disbursement Vouchers (DVs) or
Payroll shall be approved by the?
Remittances of collections to the
National Treasury are recorded as a
At the end of the period, the “Cash- debit to which of the following
Treasury/Agency Deposit, Regular” accounts?
account is closed to the
According to P.D. 1445, all revenues of

Which of the following is not one of an entity shall be remitted to the
the modes of disbursements by a National Treasury and included in the?
government entity?
Which of the following does not give A government entity recognizes revenue
rise to revenue from assistance or from exchange or non-exchange
subsidy? transactions. Which of the following
may not give rise to revenue by a
government entity?
It is an authority issued by an agency’s
Central Office to its regional and
operating units to cover the latter’s According to the GAM for NGAs,
cash requirements. revenue includes only those that are
received or receivable by the entity in
its own account. Accordingly, receipts
The national government received a on behalf of another entity are?
foreign grant conditioned on the
construction of a public infrastructure.
Entity A was chosen as the Payments of checks that are
implementing agency. When the national chargeable against the Treasury
government received the grant, the Account are credited to the
entry in the BTr’s books included a?
According to the GAM for NGAs, cash

According to P.D. 1445 disbursements are made through
Which of the following reflects a Non- .Which of the following shall certify
Cash Availment Authority (NCAA) mode the availability of funds and
of disbursement? completeness of supporting documents
before the Head of Agency or his/her
Entity A makes payment through bank authorized representative can enter
transfer. This mode of disbursement is into contracts that obligate the
most likely through the use of a(an) government for the eventual payment of
government funds?
All of the following give rise to the
recognition of revenue from non-
exchange transaction except
Incorrect Statement regarding, firm commitment, that is attributable
accounting for unreleased checks by a to a particular risk and could affect
government entity? surplus or deficit.
 Unreleased checks are physically  Fair value hedge
canceled.
The entry to record a disbursement
It is a report that is prepared for the from the petty cash fund is
purpose of bringing the balances of  Dr. Petty Cash Cr. Cash Modified
cash per records and per bank Disbursement System (MDS) Regular
statement into agreement.
 bank reconciliation statement If the unadjusted balance of cash per
bank statement is greater than the
It is not qualify as cash equivalent for adjusted balance and there no other
a government entity reconciling items or errors, the
difference would most certainly be
 Money market placement with an caused by a?
original term of 3 months.  Outstanding Check
According to the GAM for NGAs, Entity A estimates a risk of loss on a

government entities shall prepare bank recognized asset at 20%. However,
reconciliations Entity A can only accept a risk of 5%.
 on a monthly basis Entity A then enters into a forward
contract to offset the excess risk of
It may not be included as part of cash 15%. This process is best described as
in the note disclosures  Risk management
 Unreplenished petty cash fund
consisting of only the coins and All of the following may cause the
currencies held as at the reporting cancellation of a check drawn by a
date government entity
 The check becomes stale.
It is a hedge of the exposure to  Wrong spelling or unnecessary
changes in fair value of a recognized markings on the check.
asset or liability or an unrecognized  The check is prepared using a pen
firm commitment, or an identified with red ink
portion of such an asset, liability or
FINANCIAL ASSETS  Contractual right to exchange
financial instrument that are
Financial Instrument potentially favorable
- Contracts that gives rise to both  Contract that will or may be settled
financial asset, liability or equity of in the entity’s own equity
anither entity. instrument.
Financial Assets Financial Liability

 Cash  Contractual obli to deliver cash
 Equity Instrument  Contractual obli to exchange financial
 Contractual right to receive assets or liab that are potentially
unfavorable.
 Contract that will or may be settled - Financial Instrument or other contract
in the entity’s own equity derives its value from the changes in
instrument. value of some underlying asset.
Purpose: Risk Mngt: process of
Equity Instrument identifying the desired or actual level of
- Contract that evidences a residual risk,
interest in asset after deducting all of its
liab. Hedging
- method of offsetting a potential
Initial Recognition financial loss to reduce risk.
- FA recognized when an entity become a
party to the contractual provision of the Hedging Relationship
instrument.  Fair Value hedge
 Cash flow hedge
Initial Measurement  Hedge of net investment in a foreign
- initially measured at FV + transaction operation
cost EXCEPT FA through surplus or
deficit whose transac cost are expense Components of Hedging RS
 Hedging Instrument
Transaction Cost  Hedged Item
-directly attributable to acquisition
Incremental Cost
- not have been incurred if not acquired.
Unreleased Checks
-checks drawn but not yet given to the
payees as of end of the period.
- not physically cancelled.
Petty Cash Fund AGRICULTURE
- amount granted to duly designated PCF -farming or the process of producing
custodian for payment of authorized crops and raising livestock.
which cannot be conveniently paid
though checks. Agriculture Activity
- JE will made when it is REPLENISHED -biological transformation and harvest of
OR ADJUSTED at the end of period for biological asset including exchange and
UNREPLENISHED EXPENSES. non exchange transac.
Cash shortage/Overage of Disbursing Common Features:

Officer
- DO is liable for any CASH SHORTAGE 1. Capability to Change- Living animals
- CASH OVERAGE that he cannot or plants
satisfactorily explain is FOREFEITED in 2. Management of Change-
gov. management facilities biological
transformation by enhancing or at
Dishonored Checks least stabilizing.
- it is NOT accepted when presented for 3. Measurement of Change- change in
payment. quality or quantity, and it is
measured and monitored as a routine
Derivatives management.
Biological Transformation
-processes that cause qualitative and
quantitative changes in BA
I. Assets changes through

1. Growth- improvements in quality of
plants and animals.
2. Procreation- creation of additional
living animals and plants
3. Degeneration- decrease in
deterioration in quality of animals or
plants.
II. Production of agricultural produce.
Biological Asset
-living animal or plant
Agricultural produce
- harvest product
-”Harvest” detachment of produce from
biological asset.
Recognition
- Biological asset or agricultural produce
is recognized when it meets the asset
recog criteria including the reliable
measurement of its FV or cost.
Measurement
- BA is initially and subsequently
measued at FV - costs to sell. Gain or loss
arising from this measurement are
recognized in surplus or explicit.
Agricultural Produce
- measured at FV - cost to sell at the
point of harvest.
Active Market
- items traded are homogenous
- willing buyers and sellers can be found
anytime,
- prices are available to public

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Which of the following shall certify the

availability of allotment before Government entities and business

According to P.D. 1445, all revenues of

According to the GAM for NGAs, cash

According to the GAM for NGAs, Entity A estimates a risk of loss on a

Financial Assets Financial Liability

Cash shortage/Overage of Disbursing Common Features:

I. Assets changes through

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