In answering numbers 16-25, refer to the following choices:
A. The first statement is true but the second statement is false.
B. The first statement is false but the second statement is true.
C. Both statements are true.
D. Neither of the statements is true.
16. S1: Allotment refers to an authorization made by law or other legislative enactment, directing the
payment
of goods and services out of government funds under specified conditions or for special
purposes.
S2: Appropriation is the authorization issued by the DBM to the agency which allows it to incur
obligations.
D
17. S1: Obligation accounting refers to the accounting practice, procedures and techniques for recording
obligations in the government.
S2: Obligation accounting provides the ceiling of the maximum extent by which an agency can incur
obligations or commit the resources of the government in the performance of its function.
C
18. S1: The NCA is the share of the Agency in the income of the National Government.
S2: The Notice of Cash Allocation received by the agency is net of withholding tax for
Personal
Services and VAT and other form of taxes for Maintenance and Other Operating
Expenses
and Capital Outlays to be withheld by the agency.
B
19. S1: The Budgetary accounts consist of appropriations, obligations and disbursements.
S2: Budgetary accounts are recorded in the Regular Agency’s books of accounts.
D
20. S1: Obligation is an act which binds an agency for the immediate payment of a sum of
money from
the National Treasury.
S2: DBM approves the Agency Budget Matrix while the BTr receives and keeps
government funds.
D
21. S1: During the budget preparation phase, DBM will assess and determines the allowable
deficit the
Government can use.
S2: As member of DBCC, DOF responsibilities is resource allocation and management.
D
22. S1: Government funds and property shall be spent or used solely for public purposes.
S2: The more the government intends to raise the country’s level of development, the more
expenditure rise.
C
23. S1: Only selected agencies are reminded to use the Advice to Debit Account (ADA) to settle
government payables pursuant to general provision no.81 of 2018 GAA.
S2; Any available allotment for PS within the department may be utilized for the payment of
deficiencies in authorized personnel benefits pursuant to general provision no, 46 of 20a8
GAA.
B
24. S1: General Accounting Plan shows the overall accounting system of a government
agency/unit.
S2: Budgeting is basically planning and controlling.
C
25. S1: Public infrastructures are already subjected to depreciation pursuant to PPSAS 31.
S2: The estimated residual value of the cost is at 5% in computing the depreciation.
C
26. S1: Program loans are foreign loans obtained to finance a specific project such as the
building of
roads or bridges.
S2: Project loans are sourced from auction of Treasury bills, notes and bonds.
D
27. S1: All modifications within Capital Outlays, as appropriated in the 2018 GAA, may only
be made
until June 30, 2018 except in cases where calamities occur.
S2: Any agency authorized by law to utilize income collections can be authorized also to
avail of
excess income.
A
28. S1: Every 15th day of the following month, the Monthly Report on Appropriation,
Allotments ,
Obligations and Disbursements should be submitted to DBM
S2: An initial comprehensive NCA issued covering the total current year’s operating cash
requirements excludes provision for prior year’s obligations.
B
29. SI: Budgeting establish in advance the objective or end result of the budget period.
S2: Zero-based budgeting is a situation wherein the budget is equal or less than expected
revenues.
A
30. SI: The budget call contains the President explanation regarding the policy framework and
priorities in the budget.
S2: The President message contains budget parameters as set by DBCC and policy
guidelines and
procedures in the preparation and submission of Agency Budget Proposals.
