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Government Accounting Essentials
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1
Question
What is the definition of government accounting according to the State Audit Code?
Page 1
Answer
The processes of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof.
2
Question
What are the primary objectives of government accounting?
Page 1
Answer
To produce information on past operations and present conditions; provide guidance for future operations; control acts of public bodies in handling funds; and report financial position and operations.
3
Question
How does government accounting differ from business accounting in emphasis?
Page 2
Answer
Government accounting emphasizes sources and utilization of funds, and responsibility, accountability, and liability of entities entrusted with funds.
4
Question
What are the main sources of government funds?
Page 2
Answer
Receipts from taxes and other fees, borrowings, and grants from other governments and international bodies.
5
Question
What are examples of utilization of government funds?
Page 2
Answer
Expenditures on programs, projects, unanticipated losses from calamities and the like.
6
Question
What is responsibility over government funds and property?
Page 2
Answer
Government resources shall be utilized efficiently and effectively in accordance with the law; the agency head is primarily responsible, and all exercising authority share fiscal responsibility.
7
Question
What does accountability over government funds entail?
Page 3
Answer
A government officer entrusted with resources is responsible for safekeeping; must be properly bonded; transfers require COA authorization and documentation.
8
Question
What is liability over government funds for unlawful use?
Page 3
Answer
Unlawful use is the personal liability of the directly responsible employee.
9
Question
Under what conditions is an accountable officer liable for losses?
Page 3
Answer
Liable for all losses from unlawful use or negligence in safekeeping; not relieved if acting under superior without written notice of illegality.
10
Question
What must an accountable officer do in case of loss from force majeure?
Page 3
Answer
Immediately notify COA within 30 days; failure does not relieve liability.
11
Question
What is the main concept regarding government resources?
Page 3
Answer
Must be utilized efficiently and effectively in accordance with the law; officials are responsible, accountable, and liable for any loss.
12
Question
What are the primary functions of the Commission on Audit (COA)?
Page 4
Answer
Promulgate accounting and auditing rules; keep general accounts, vouchers, and documents; submit financial reports to President and Congress.
13
Question
What is the role of the Department of Budget and Management (DBM)?
Page 4
Answer
Formulate and implement the national budget to attain socio-economic objectives.
14
Question
What are the key functions of the Bureau of Treasury (BTr)?
Page 4
Answer
Receive and keep national funds; manage and control disbursements; maintain accounts of financial transactions of national government offices.
15
Question
What is the definition of a government agency?
Page 4
Answer
Any department, bureau or office of the national government, its branches and instrumentalities, political subdivisions, GOCCs including subsidiaries, or self-governing boards or commissions.
16
Question
What accounting responsibilities do government agencies have?
Page 4
Answer
Maintain accounting books and budget registries reconciled with BTr cash records, COA and DBM budget records; required to have accounting units.
17
Question
What is an entity in the context of government financial reporting?
Page 5
Answer
A government agency, department, or operating/field unit.
18
Question
What is financial reporting in government?
Page 5
Answer
The process of preparation, presentation, and submission of general purpose financial statements and other reports for accountability and decision-making.
19
Question
Why are overseas Filipino workers called unsung heroes?
Page 6
Answer
Their remittances increase spending, taxes, and government funds for development, despite personal sacrifices.
20
Question
How does accounting contribute to efficient government resource utilization?
Page 6
Answer
Provides information for planning sources and uses of funds, comparing actual vs. expected results.
21
Question
What replaced the old government accounting system in 2002?
Page 7
Answer
The New Government Accounting System (NGAS).
22
Question
What replaced NGAS on January 1, 2016?
Page 7
Answer
The Government Accounting Manual for National Government Agencies (GAM for NGAs).
23
Question
What is the primary purpose of the GAM for NGAs?
Page 7
Answer
To harmonize government accounting standards with international standards, particularly IPSAS based on IFRS.
24
Question
What Philippine standards are incorporated in GAM for NGAs?
Page 7
Answer
Philippine Public Sector Accounting Standards (PPSAS).
25
Question
What constitutional authority does COA have for GAM for NGAs?
Page 7
Answer
Exclusive authority to promulgate accounting and auditing rules and regulations.
26
Question
What does the GAM for NGAs cover?
Page 8
Answer
Basic concepts for preparing financial statements per PPSAS, and reporting budget, revenue, and expenditure per laws.
27
Question
What are the objectives of updating the GAM for NGAs?
Page 8
Answer
Update standards, policies, guidelines in accounting; coding structure and accounts; accounting books, registries, records, forms, reports, and statements.
28
Question
What is the accrual basis of accounting in government?
Page 8
Answer
Transactions recognized when they occur, not only when cash is received or paid, in the periods they relate to.
29
Question
What is the budget basis in GAM for NGAs?
Page 8
Answer
Basis for presentation of budget information in financial statements.
30
Question
What bookkeeping system is used in government accounting?
Page 8
Answer
Double entry bookkeeping.