Accountancy Department

Quiz for Revenue and Other Receipts

INSTRUCTIONS: Read each item carefully. Choose the best answer among the choices provided.
Write your final answer on a ¼ sheet of paper.

1. According to the GAM for NGAs, which of the following may never give rise to revenue for a
government entity?
A. Services in-kind C. Concessionary Loan
B. Debt forgiveness D. Grant with condition

2. According to the GAM for NGAs, an exchange of goods or services of similar nature and value
between entities
A. Gives rise to revenue measured at the fair value of the goods or services received, adjusted for
any cash paid or received on the exchange.
B. Gives rise to revenue measured at the fair value of the goods or services given up, adjusted for
any cash paid or received on the exchange.
C. A or B, whichever is more clearly determinable.
D. Does not give rise to revenue.

3. According to the GAM for NGAs, when the outcome of a service contract cannot be estimated
reliably, revenue is recognized
A. On a straight line basis over the periods the services are rendered.
B. By reference to the contract’s stage of completion at each reporting date.
C. Only to the extent of costs that are expected to be recovered.
D. Only upon the completion of the contract.

4. Which of the following is not one of the fundamental principles for revenue under P.D. No. 1445?
A. All revenues shall be remitted to the BTr and included in the General Fund, unless another law
specifically allows otherwise.
B. Recording of revenue in other types of funds (e.g., Special Fund) shall be made only when
authorized by law.
C. Collections of revenue shall be properly acknowledged through pre-numbered Official
Receipts.
D. All collections of revenue must be in the form of cash. Checks are not acceptable.

5. According to the GAM for NGAs, interest revenue is recognized

A. On a time proportion basis using the effective interest method
B. On a straight line basis
C. In accordance with the substance of the relevant loan agreement
D. When the entity’s right to receive payment is established

6. The national government receives a foreign grant conditioned on the construction of a public
infrastructure. According to the GAM for NGAs, when does the national government recognize
revenue from the grant (i.e., credit to the “income from grants and donations in cash” account?
A. Upon receipt of the grant
B. When the grant becomes receivable, provided there is reasonable assurance that the attached
condition will be satisfied.
C. When the condition is met.
D. When the related expenses for which the grant is intended to compensate are incurred.

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7. A government entity collects fees for the processing of certain permits. The processing of a permit
would normally take a few minutes. The processing fee is collected upon issuance of the permit.
This government entity would normally recognize revenue from permit fees.
A. On a straight line basis
B. By reference to the stage of completion
C. Upon collection of the fee
D. When the significant risks and rewards are transferred to the customer

8. Which of the following statements is not true?

A. Fines shall include economic benefits or service potential received or receivable by a public
sector agency, as determined by a court or other law enforcement body, as a consequence of
the breach of laws or regulations.
B. Receipts/collections shall refer to all cash actually received from all sources during a given
accounting period.
C. Taxes do not include fines or other penalties imposed for breaches of the law.
D. Transfers are inflows of future economic benefits or service potential from exchange
transactions, other than taxes.

9. Statement 1: Interest shall be recognized as they are earned in accordance with the substance of
the relevant agreement; and
Statement 2: Dividends or similar distributions shall be recognized when the shareholder’s or the
entity’s right to receive payment is established.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

10. Revenues received by the NGAs from exchange transactions are derived from the following
except:
A. Sale of goods or provisions of services to third parties or to other NGAs.
B. Use by other entity’s assets yielding interest, royalties and dividends or similar distributions.
C. Taxes, gifts and donations, goods in kind and fines and penalties.
D. Interest income, royalties and dividends

11. Which among the following is/are NOT reasons for the reversion to the General Fund of all other
funds of the NG other than General Fund itself?
A. Funds are no longer necessary for the attainment of the purposes for which said funds were
established.
B. Funds needed by the General Fund in time of emergency.
C. None of the above
D. All of the above

12. These are economic benefits or service potential compulsory paid or payable to public sector
agencies, in accordance with laws and/or regulations, established to provide revenue to the
government.
A. Royalties C. Fines
B. Taxes D. Bequest

13. Which among the following is not true?

A. Transferred assets are measured at their fair value as at the date of acquisition.
B. Revenue from exchange transaction shall be measured at fair value of the consideration
received or receivable.
C. When the inflow of cash or cash equivalents received or receivable is deferred, the fair value of
the consideration is equal to the nominal amount of cash received or receivable.
D. Revenue from non-exchange transactions shall be measured at the amount of the increase in net
assets recognized by the entity.

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14. These do not meet the definition of an asset because the recipient entity is unable to control the
access of the transferor to the future economic benefits or service potential embodied in the item.
These are unenforceable undertakings to transfer assets to the recipient entity.
A. Pledges C. Goods in kind
B. Services in kind D. Inter-agency fund transfers

15. A check is dishonored when

A. The check is duly presented for payment and payment is accepted.
B. The check is duly presented for acceptance, and such an acceptance as is prescribed by law is
refused.
C. Check paid to the agency that was drawn against sufficient fund
D. All of the above

16. These are checks that become stale, voided or spoiled

A. Dishonored checks C. Cancelled checks
B. Disqualified checks D. Bad checks

17. Statement 1: Cash overage shall be taken up as Miscellaneous Income.

Statement 2: Cash overage that cannot be satisfactorily explained by the collecting officer shall be
forfeited in favor of the collecting officer.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

18. Cash received from central office/regional officer/operating units of an entity and from another
entity for the purpose of implementing specific projects.
A. Intra-agency fund transfers C. Pledges
B. Goods in kind D. Inter-agency fund transfers

19. Which of the following statement is not true?

A. Receipts shall be recorded as revenue of special, fiduciary or trust funds or funds other than the
General Fund, only when authorized by law as implemented by rules and regulations issued by
the Permanent Committee.
B. No payment of any nature shall be received by a collecting officer without immediately issuing
an official receipt in acknowledgement thereof.
C. An officer charged with the collection of revenue or the receiving of moneys payable to the
government shall accept payment for taxes, dues or other indebtedness to the government in the
form of cash excluding checks issued in payment of government obligations.
D. Except as may otherwise be specifically provided by law or competent authority, all moneys
and property officially received by a public officer in any capacity or upon any occasion must
be accounted for as government funds and government property.

20. Statement 1: All revenue (income) accruing to the departments, offices, and agencies by virtue of
the provisions of existing laws, orders and regulations shall be deposited to the National Treasury
or in the duly authorized depository of the Government and shall accrue to the General Fund of the
Government, unless otherwise specifically provided by law.
Statement 2: Only when authorized by law and following such rules and regulations as may be
issued by the Permanent Committee shall receipts be recorded as revenue of special, fiduciary or
trust funds or funds other than the General Fund.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

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