QUIZ in Government Accounting
DISBURSEMENTS
(Group 3)
PART 1- MODIFIED TRUE OR FALSE
8 Questions- 2 points per number (14 pts in total)
1. The Advice to Debit Account or ADA works like a check and ADA can be drawn to pay a single
payee if they all maintain accounts in the same bank where the ADA is drawn. FALSE
The Advice to Debit Account or ADA works like a check and ADA can be drawn to pay various
payees if they all maintain accounts in the same bank where the ADA is drawn.
2. All disbursement shall be made through disbursement vouchers or payroll which are approved
by the Cashier or Head of Cash Division.
All disbursement shall be made through disbursement vouchers or payroll which are approved
by the Head of Agency. FALSE
3. The measurement of inventory are comprises with purchase cost, including trade discounts,
rebates, other similar deductions in purchase price and direct cost incurred in bringing the asset
to its intended location and condition. FALSE
The measurement of inventory are comprises with purchase cost, excluding trade discounts,
rebates, other similar deductions in purchase price and direct cost incurred in bringing the asset
to its intended location and condition.
4. Semi-Expandable Property consist of machinery, equipment, furniture and fixtures and similar
items that are not capitalized as Property, Plant and Equipment because their costs are above
the capitalization threshold for PPE. FALSE
Semi-Expandable Property consist of machinery, equipment, furniture and fixtures and similar
items that are not capitalized as Property, Plant and Equipment because their costs are below
the capitalization threshold for PPE.
5. Registry of Allotments, Obligations and Disbursements –Personnel Services must be maintained
through Appropriations Act by the Treasury Unit, fund cluster, by Major Final Output (MFO) or
Program/Activity/Project (PAP) for maintenance and other operating expenses. FALSE
Registry of Allotments, Obligations and Disbursements –Personnel Services must be maintained through
Appropriations Act by the Budget Division/Unit, fund cluster, by Major Final Output (MFO) or
Program/Activity/Project (PAP) for maintenance and other operating expenses.
6. All checks drawn, whether unreleased or released to payees, including cancelled checks, are
recorded chronologically in the checks or ADA Disbursement Record maintained by the cash or
Treasury Unit. TRUE
7. The cash advances for Foreign travel shall be liquidated within 30 days upon return to the
personnel’s workstation. FALSE
The cash advances for Local travel shall be liquidated within 30 days upon return to the
personnel’s workstation.
PART 2- MCQ
6 Questions- 1 pt per number (7 pts in total)
8. Which typical transaction disbursements belong are the expenditures that need allotment for
companies. As opposed to the current operating expenses, it involves investments and
procurement of assets that is expected to be used for a long period of time.
a. Current Operating Expense
b. Capital Expenditures
c. Capital Outlay
d. Maintenance and Other Operating Expenses
9. It is the authority issued by DBM to NGA’s or GOCC’s to record the payment made by the
lending institution direct to the suppliers, consultants, and contractors of a project.
a. Notice of Cash Allocation
b. Commercial Checks
c. Non-Cash Availment Authority
d. Personal Services
10. This type of disbursement should be covered by an NCAA. This mode of disbursement is made
through the JEV issued by the BTR to the availing/implementing agency to record payment of
the goods and services made directly by the lending institution to the supplier or the contractor.
a. Disbursement through direct payment method
b. Disbursement by Foreign Based Government Agencies
c. Modified Disbursement System
d. Cash Disbursement Ceiling
11. It is the checks chargeable against the account of the Treasurer of the Philippines.
a. Advice to Debit Account
b. Cashless Purchase Card System
c. Modified Disbursement System Checks
d. Commercial Checks
12. It is an authority issued by the DBM to the Department of Foreign Affairs and Department of
Labor and Employment to utilize their income collected/retained by the Foreign Service Posts to
cover their operating requirements.
a. Notice of Transfer Allocation
b. Modified Disbursement System
c. Cash Disbursement Ceiling
d. Personal Services
13. It is a cash authority issued quarterly by the DBM to central, regional, and provincial
offices and operating units to cover the cash requirements of the agencies.
a. Notice of Transfer Allocation
b. Notice of Cash Allocation
c. Non-Cash Availment Authority
d. None of the above
PART 3- RECORDING JOURNAL ENTRIES
1 pt per number (5 pts in total)
Sample Problem:
The Agency A of the national government sold a non-serviceable car with the following information:
Cost P500,000
Accumulated depreciation 250,000
Sales Price 300,000
The proceeds from sale were accordingly remitted to the National Treasury through the bank. The
agency received Special Allotment Release Order (SARO) in the amount of P500,000 for the purchase of
a new car with Notice of Cash Allocation (NCA) in the amount of P450,000, net of withholding tax of
P50,000. After approval of the purchase order issued, the motor vehicle was delivered and
accordingly, paid in full, net of withholding tax. The said tax was afterwards remitted to the Bureau of
Internal Revenue through a Tax Remittance Advice (TRA)
1. What would be the journal entries when you record the full payment of obligation?
ANSWER:
Acc Payable 500,000
Due to BIR 50,000
Cash-NT, MDS 450,000
2. What would be the journal entries when you record the remittance of withholding tax through
Tax Remittance Advice (TRA)?
ANSWER:
Due to BIR 50,000
Subsidy Income 50,000
From National Govt
3. What would be the journal entries when you record the remittance of collection to the NT
through the bank?
ANSWER:
Gain on Sale of Asset 50,000
Govt Equity 250,000
Cash-Collecting Officer 300,000
4. What would be the journal entries when you record the NCA received?
ANSWER:
Cash-NT, MDS 450,000
Subsidy Income from NG 450,000
