GAM for NGOs - Chapter 1

What state audit code states the definition of Government Accounting?

• P.D. No. 1445, Sec. 109

• P.D. No. 1445, Sec. 110

• P.D. No. 1445, Sec. 292

• None of the choices

Answer explanation

Section 109 of PD 1445?

Section 109.

Government accounting encompasses 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.

According to PD No. 1445, Sec 110, What are the objectives of Government Accounting?

I. produce information concerning past operations and present conditions

1. II. provide a basis for guidance for future operations

2. III. provide for control of the acts of public bodies and officers in the receipt, disposition and utilization of funds and property

3. IV. report on the financial position and the results of operations of government agencies for the information of all persons concerned.

• I and III only

• II and IV only

• III and IV only

• I, II, III, IV

Answer explanation

PD 1445: Government Auditing Code of the Philippines

Section 110. Objectives of Government Accounting. —

Government accounting shall aim to

1. produce information concerning past operations and present conditions;

2. provide a basis for guidance for future operations;

3. provide for control of the acts of public bodies and officers in the receipt, disposition and utilization of funds and property; and

4. report on the financial position and the results of operations of government agencies for the information of all persons concerned.

The direct responsible in implementing policies and primarily responsible for government resources

• Commission on Audit

• Head of Government Agencies

• Congress

• President

Answer explanation

Section 2

Declaration of Policy. —

It is the declared policy of the State that all resources of the government shall be managed, expended or utilized in accordance with law and regulations, and safeguarded against loss or wastage through illegal or improper disposition, with a view to ensuring efficiency, economy and effectiveness in the operations of government. The responsibility to take care that such policy is faithfully adhered to rests directly with the chief or head of the government agency concerned.

Which of the following is/are NOT the responsibility of Commission on Audit?

I. Promulgate accounting and auditing rules and regulations

II. Keeps the general accounts of the government

III. Maintain accounts of financial transaction of all national government offices, agencies and instrumentalities

• II only

• II and III

• III only

• All of the enumerated responsibilities are correct

Answer explanation

Bureau of Treasury is the one responsible in maintaining the accounts of financial transactions of all national government offices, agencies and instrumentalities.

In charge with formulation and implementation of national budget

Answer explanation

The Department of Budget and Management (DBM) is the primary government agency responsible for the formulation and implementation of the National Budget through the efficient and sound utilization of government funds and resources for the attainment of the country’s development objectives. e

They receive and keep national funds

Answer explanation

As the principal custodian of the financial and physical assets of the government, the BTr makes funding available for various government projects and programs, and assists in the formulation of policies on the borrowing, investment, and capital market activities of the PH government.

information should be _____________ within the bounds of materiality and cost.

• Complete

• Relevant

• Reliable

• Neutral

It is a qualitative characteristic of financial reporting that deals with the willingness of the users to study the informations.

The financial records and reports of government entities shall comply under ____________ basis of accounting.

In preparing general purpose financial statements, it should be in accordance with

• Generally Accepted Accounting Principles

• Philippine Financial Reporting Standards

• International Financial Reporting Standards

• Philippine Public Sector Accounting Standards