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CFE ACC 111 - CFE ACC 111 Reviewer

Accountancy (University of Pangasinan)

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CFE ACC 111

Total points97/100

Choose the best answer of your choice.

The respondent's email ([email protected]) was recorded on
submission of this form.

0 of 0 points
LAST NAME *
PASILIAO

Section *
B1-3BSA-03

FIRST NAME *
VANGIELYN

Part 1
41 of 42 points

A government agency set aside a trust fund specifically for modernization

of the systems processes. However, the agency decided to allocate the said
fund to pay first to the rental and utilities expense of the building where the
office is located. Is this allowed? *
1/1
No, trust funds are only held as part of the agency’s treasury.
No, trust funds must only be used for its specific purpose.

Yes, as long as it is supported with proper documentation.

Yes, as long as they will pay back the same amount in the fund.

The ________ shall certify to the availability of allotment and such is duly
obligated by signing the ORS. *
1/1
Chief Accountant
Collecting Officer
Head of the Budget Division

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Treasurer

Government Accounting uses fund cluster accounting wherein the books of

accounts are maintained by fund cluster. Which fund cluster will Local
Government Support Fund belong? *
1/1
Trust Receipts
Regular Agency Fund

Internally Generated Funds

Special Account – Locally Funded/Domestic Grants Fund

Which of the following is not recognized as revenue with respect to

government accounting? *
1/1
Bequests
Debt forgiveness
Sale of goods
Pledges

Which of the following is not one of the fundamental principles of revenue

in government accounting? *
1/1
Receipts of government funds shall be acknowledged in accordance with the law —
indicating the date of receipt, from whom and on what account the fund was
received.
Pre-numbered official receipts (ORs) shall be issued in strict numerical sequence.
Duplicate copies need not be the exact copies of the original.

All revenues of an entity shall be remitted to the National Treasury and included in
the General Fund of the National Government, unless another law specifically allows
otherwise.
Temporary receipts shall never be used to acknowledge the receipt of public funds.

One type of fund is derived from the income of any government agency and
available for appropriation or expenditure in accordance with the law.
Determine which of the following is the best example for this type of fund? *

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Pension and gratuity fund
All receipts or revenues which are not otherwise accruing to other funds.
Receipts by any agency of government or by a public officer acting as trustee, agent,
or administrator for the fulfillment of some obligations
Collections from taxes by BIR/BOC and other tax agencies

It is the government's estimate of the sources and uses of government

funds within a fiscal year. This forms the basis for expenditures and is the
government's key instrument for promoting its socio-economic objectives. *
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Master Budget
Original Budget
Approved Budget
National Budget

Statement 1: The approved budget is composed of eight (8) categories

under the Unified Accounts Code Structure (UACS).Statement 2: The
National Budget underwent four (4) major phases of budgeting cycle. *
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Both statements are true.

Only statement 2 is true.

Only statement 1 is true.
Neither of the statements are true.

In the year 2011, the Philippine Government started to shift from ________ to
________. *
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Incremental budgeting; zero-based budgeting

Zero-based budgeting; constant-rate budgeting

Constant-rate budgeting; zero-based budgeting
Zero-based budgeting; incremental budgeting

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Which of the following is not one of the qualitative characteristics of

financial reporting in Government Accounting? *
1/1
Form over substance

Materiality
Timeliness
Comparability

Which of the following is an example of personnel services expenditures? *

1/1
Utilities and supplies expenses
Salaries and cash gifts

Interest expense and bank charges

Acquisition of equipment

Dividend revenue is recognized *

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based on the substance of the agreement
not recognized as revenue because they do not meet the recognition criteria
on a time proportion basis using effective interest method
when the right to receive payments is established

The requesting and approving officials have the responsibility to *

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Certify the necessity and legality of disbursements
Approve all disbursement vouchers or payrolls
Ensure that the disbursements are legal and conform to applicable rules and
regulations

Certify the availability of funds/cash and the completeness of the supporting

documents

Which of the following Is recognized as revenue? *

0/1
Overpayment of expenses
Performance bonds and security deposits

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Subsidy from National Government

Receipts from cash advance

All of the following are considered valid cashless disbursements, except *

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Payment of payables using Non-Cash Availment Authority
Payment to a supplier through AP Cargo

remittance of taxes withheld to the BIR through Tax Remittance Advice

Purchase of goods using an credit card issued by BPI

Statement 1: All government resources shall be used in accordance with the

law and for public and private purposes.Statement 2: The use of
government resources shall be approved by proper officials. *
1/1
Neither of the statements are true.
Only statement 2 is true.

Both statements are true.

Only statement 1 is true.

With the incurrence of obligation, what is the appropriate journal entry? *

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Debit: Expense; Credit: Payable
Debit: Subsidy from National Government; Credit: Payable
No journal entry, only record in the appropriate registries.

Debit: Expense; Credit: Due to BIR

The Tax Remittance Advice shall be used to recognize, except *

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in the books of the BIR and BOC
in the books of the BTr
in the books of COA

in the books of national government agencies

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Statement 1: Notice of Transfer of Allocation is issued by the DBM to

agencies with foreign operations allowing them to use the income collected
by their Foreign Service posts (FSPS) to cover their operating requirements.
Statement 2: An entity is allowed to make disbursements even before it has
received a disbursement authority. *
1/1
Only statement 1 is true.
Neither of the statements are true.

Both statements are true.

Only statement 2 is true.

Statement 1: The Bureau of Treasury accounts for the cash, public debt and
related transactions of the National Government. Statement 2: The
Department of Finance, through the Government Accountancy Sector,
maintains budget records showing the overall approved budget of the
National Government and its execution. *
1/1
Both statements are true.
Neither of the statements are true.
Only statement 2 is true.
Only statement 1 is true.

The Department of Foreign Affairs has recorded revenue from Foreign

Service Posts (FSPs), what will be the correct journal entry to record the
collection of this revenue? *
1/1
Debit: Cash – Collecting Officer; Credit: Subsidy from National Government
Debit: Cash – Modified Disbursement System (MDS); Credit: Subsidy from National
Government
Debit: Cash – Modified Disbursement System (MDS); Credit: Passport and Visa Fees
Debit: Cash – Collecting Officer; Credit: Passport and Visa Fees

Who is responsible for preparing the Report of Collections and Deposits? *

1/1

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Head of Agency
Treasurer
Collecting Officer

Chief Accountant

What approach is used by the Philippine Government in budget

preparation? *
1/1
Top-down
Bottom-down
Bottom-up

Top-up

The Registries of Revenue and Other Receipts shall be maintained by the *

1/1
Bureau of Internal Revenue
Bureau of Treasury
Commission on Audit
Budget Division of NGAs

Observe the cropped image below. Based on its content, what registry is
it? *
1/1

RAOD
RAPAL
RROR
RANCA

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As the budget is being executed, it is regularly monitored to determine the

conformance of actual results with planned targets. What phase of the
budget cycle occurs concurrently with this? *
1/1
The phase when the DBM issues guidelines on the release and utilization of funds
while the various agencies submit their Budget Execution Documents (BEDs).
The phase when the House of Representatives conducts hearings to scrutinize the
various agencies' respective proposed programs and expenditures. Thereafter, the
House of Representatives prepares the General Appropriations Bill (GAB).
The phase when a budget call is issued by the Department of Budget and
Management (DBM) to all government agencies containing the next fiscal year’s
targets, agency budget ceiling, and other guidelines in the completion and
submission of agency budget proposals.
The phase when government agencies are required to submit the accountability
reports.

In this phase of the budget cycle is when the government funds are spent. *
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Budget Execution

Budget Preparation
Budget Legislation
Budget Accountability

Which of the following transactions will result in an expense? *

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Refund of excess cash advance
Granting of cash advance for travel
Remittance of the refund for excess cash advance to the Bureau of Treasury
Liquidation of cash advance for travel

The Registry of Appropriations and Allotments (RAPAL) shall be maintained

by NGAs *
1/1
To monitor the revenue and other receipts estimated/budgeted, collected and
remitted/deposited
To monitor appropriations and allotments charged thereto

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To record allotments, obligations and disbursements

To record the approved special budget and the corresponding utilizations and
disbursements charged to retained income authorized

What is the correct sequence of the following steps in the budget process? *
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III, IV, I, II
III, I, II, IV
III, I, IV, II

III, IV, II, I

Statement 1: A collecting officer shall immediately issue an official receipt

(OR) upon collecting a payment of any nature. Statement 2: All revenues of
an entity shall be remitted to the Commission on Audit and included in the
General Fund of the National Government, unless another law specifically
allows otherwise *
1/1
Neither of the statements are true.
Both statements are true.
Only statement 2 is true.
Only statement 1 is true.

Certification of availability of allotment: _______________;Charging of

obligations against available allotments: _______________.Budget Officer;
Chief Accountant *
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Chief Accountant; Budget Officer
Chief Accountant; Chief Accountant
Budget Officer; Chief Accountant

Budget Officer; Budget Officer

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The following are the components of general-purpose financial statements,

except *
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Statement of Financial Performance
Statement of Comparison of Budget and Actual Amounts
Statement of Changes in Statutory Funds

Statement of Financial Position

Which of the following responsibilities of the offices are charged with

government accounting responsibility? *
1/1
The office that has the exclusive authority to promulgate accounting and auditing
rules and regulations, keeps the general accounts of the government, supporting
vouchers, and other documents and submits financial to the President and Congress
The office that is responsible for the formulation and implementation of the national
budget with the goal of attaining the nation's socio-economic objectives
The office which serves as the cash custodian of the government authorized to
receive and keep national funds and manage and control the disbursements thereof
and Maintain accounts of financial transactions of all national government offices,
agencies and instrumentalities
All of the offices mentioned are part are in charged in the accounting responsibility.

Which of the following is not an acceptable mode of payment? *

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Checks
None of the choices.

Credit Card
Cash

Which of the following is not an objective of Government Accounting? *

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To provide a basis for guidance for future operations.
To report on the variances of costing during the production process.

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

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To report on the financial position and the results of operations of government

agencies for the information of all persons concerned.

Automatic Appropriations are authorizations made annually or for some

other period prescribed by law, by virtue of standing legislation, which do
not require periodic action by the Congress. Which of the following is an
example of automatic appropriations? *
1/1
Receipts deposited with Authorized Government Depository Bank (AGDB).
Tax refunds.

Foreign loan proceeds are generated for newly approved projects covered by
perfected loan agreements.
Tuition and matriculation fees and other internally generated receipts.

These comprise all funds derived from the income of any agency of the
government and available for appropriation or expenditure in accordance
with law. *
1/1
Reserve Funds

Sinking Funds
Optional Funds
Contribution, Education, and Training Funds

This RAOD shall be used to record the allotments received, obligations

incurred and disbursements related to purchase and acquisition of capital
assets and other equipment. *
1/1
RAOD – PS
RAOD – CO

RAOD – FE
RAOD – MOOE

What will be the appropriate journal entry given the transaction to

recognize receipt of the NCA for the construction of a railroad system? *
1/1

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Debit: Construction in Progress; Credit: Subsidy from National Government

Debit: Cash – Tax Remittance Advice (TRA); Credit: Subsidy from National Government
Debit: Cash – Modified Disbursement System (MDS); Credit: Subsidy from National
Government

Debit: Railways Systems; Credit: Subsidy from National Government

The Government Accounting Manual for National Government Agencies

provides the basic concepts to be used in preparing general purpose
financial statement in accordance with ________________ and reporting of
budget, revenue, and expenditure in accordance with ________________. *
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Laws, rules, and regulations; Philippine Public Sector Accounting Standards
Philippine Public Sector Accounting Standards; Laws, rules, and regulations

Philippine Public Sector Accounting Standards; Philippine Public Sector Accounting

Standards
Laws, rules, and regulations; Laws, rules, and regulations

This is used to monitor appropriations and allotments. This is to ensure that

allotments will not exceed appropriations. *
1/1
Registries of Budget, Utilization and Disbursements (RBUD)
Registries of Allotments, Obligations and Disbursements (RAOD)
Registries of Revenue and Other Receipts (RROR)
Registry of Appropriations and Allotments (RAPAL)

Part 2
31 of 32 points

Mangoes are considered to be an agricultural produce of mango trees.

Before harvesting these fruits to be available for sale, how should you
measure these mangoes? *
1/1
Fair value less cost to sell at the point of harvest

Fair value less cost to sell

Fair value less cost to sell at the point of selling
Fair value

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When a contingent asset is probable to occur, it must be *

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Recognized as an asset.
Disclosed on the notes to the financial statement.

Ignored.
Recognized and disclosed.

Which among the following is not an example of Financial Liability? *

1/1
Due to officers and employees
Accounts payable
Due to LGUs

Notes payable

During the current year, the unused balance of petty cash fund will be *
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Disclosed on the notes to the financial statements.
Reported as expense and will be reversed on the next calendar year.
Closed upon the termination of the custodian.

Closed at year-end.

Transfers to or from investment property shall be made only when there is a

change in use, as evidenced by the following: *
1/1
Commencement of owner-occupation, for a transfer from investment property to
owner-occupied property.
Commencement of an operating lease (on a commercial basis) to another party, for a
transfer from inventories to investment property.
Commencement of development with a view to sale, for a transfer from investment
property to inventories.
All of the given choices.

The following conditions exist in the active market, except *

1/1

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The items traded in the market are homogenous.

Willing buyers and sellers can normally be found at any time.
Transport costs refer to all costs necessary in getting the asset to the market for sale

Prices are available to the public.

These are non-derivative financial assets that are designated as available

for sale or are not classifiable under the other categories. *
1/1
Loans and receivables
Available-for-sale financial assets

Held-to-maturity investments
Financial asset at fair value through surplus or deficit

Statement 1: Heritage Assets are measured at cost. Statement 2: Heritage

Assets are not impaired. *
1/1
Both statements are true.
Only statement 2 is true.
Only statement 1 is true.

Neither of the statements are true.

Among the different types of financial assets, which does not use the
effective interest method to measure the investment subsequently? *
1/1
Investments in quoted stocks or bonds

Investment in available-for-sale instrument

Accounts, notes, loans receivable
Investment in bonds and other debt securities to be held until maturity

A government entity carries inventories for distribution, which is initially

measured at cost. During year-end, the inventories are still in their
possession, the entity must measure these inventories at *
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Net realizable

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Current replacement cost

Lower of cost and current replacement cost

Lower of cost and net realizable value

If the biological asset attached to land does not have a separate market but
an active market may exist for the combined assets as a package, how can
you determine the fair value of the biological assets? *
1/1
The fair value of the raw land and the land improvements may be deducted from the
fair value of the combined assets.

The fair value of the land improvement will only be deducted from the fair value of
the combined assets.
The fair value of the raw land will only be deducted from the fair value of the
combined assets.
The fair value of the combined assets will be the fair value of the biological asset.

On January 1, 2021, Entity X, a dealer, leased to Entity Y an office

equipment recognized as Merchandise Inventory with an annual rental of
P40,000 for 5 years payable beginning December 31, 2021. The estimated
useful life of the office equipment is 5 years and the cost is P120,000. The
implicit interest rate is 10% which is known to lessee. The present value
factor is rounded to 5 decimal places. How much is the balance of the Lease
Receivable on December 31, 2022? *
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P99,474.24

P79,730.00
P151,631.60
P120,000.00

This document issued to the supplier when making a purchase. *

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Purchase Receipt
Purchase Request
Purchase Card
Purchase Order

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When a contingent liability is probable to occur, it must be *

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Recognized as a liability.
Recognized as a liability and disclosed.

Disclosed on the notes to the financial statement.

Ignored.

Which of the following statements correctly differentiates the Stock Card

from the Stock Ledger Card? *
1/1
The Stock Ledger Card is maintained by the Budget Division while the Stock Card is
maintained by the Accounting Division.
The Stock Card shows quantities only while the Stock Ledger Card shows monetary
balances only.
The Stock Card shows quantities only while the Stock Ledger Card shows quantities as
well as monetary amounts

The Stock Card is subject to audit by the COA while the Stock Ledger Card is not.

At end of the year, a government entity has determined the following items:
Cost:P100,000;Net realizable value: P80,000;Current replacement cost:
P90,000. How much is the ending balance of the goods held for sale? *
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P80,000

P90,000
P100,000
P0

Statement 1: Lease payments under an operating lease in lessee’s books

shall be recognized as an expense on a straight-line basis over the lease
term, unless another systematic basis is representative of the time pattern
of the user’s benefit. Statement 2: A lease is classified as an operating
lease if it transfers substantially all the risk and rewards incidental to
ownership. *
1/1

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Only statement 1 is true.

Neither of the statements are true.

Both statements are true.
Only statement 2 is true.

Receivables are initially recognized at _____________ and subsequently

measured at _________. *
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Fair value minus transaction costs; amortized cost
Fair value plus transaction costs; amortized cost

Amortized cost; amortized cost

Fair value; amortized cost

In amortizing intangible assets, the default method in amortizing the asset

with finite life is *
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Double declining
Straight line

Composite
Sum-of-the-year’s digit

On January 2, 2021, the government entity entered into a 20-year lease on

office building. The ownership of the building will be turned over to the
lessee at the end of the lease term. The lease requires 20 equal annual
amount, payable beginning December 31, 2021. Implicit interest rate is 6%,
which is known to lessee. Periodic lease payment is P100,000. The carrying
amount and fair value of the office building on January 2, 2021 is
P1,150,000 and the estimated useful life is 20 years. The present value
factor is rounded to 5 decimal places. How much is the balance of the Lease
Payable on December 31, 2021? *
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P1,115,811.52

P1,150,000.00
P1,046,811.52
P1,146,992.00

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This is used by the Supply/Property Division to record the issuance of PPE to

the end user. *
1/1
Property Acknowledgement Receipt

Property Transfer Report

Property, Plant and Equipment Ledger Card
Property Card

This is the management by an entity of the biological transformation and

harvest of biological assets for sale, including exchange or non-exchange
transactions, or for conversion into agricultural produce, or into additional
biological assets. *
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Agricultural Transformation
Agricultural Activity

Biological Transformation
Biological Activity

In allocating a reversal of an impairment loss for a cash-generating unit, the

carrying amount of an asset shall not be increased above *
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The lower of its recoverable amount (if determinable); and the carrying amount that
would have been determined if no impairment loss had been recognized for the asset
in prior periods.

The higher of its recoverable amount (if determinable); and the carrying amount that
would have been determined considering the recognition of impairment loss in prior
periods
The higher of its recoverable amount (if determinable); and the carrying amount that
would have been determined if no impairment loss had been recognized for the asset
in prior periods.
The lower of its recoverable amount (if determinable); and the carrying amount that
would have been determined considering the recognition of impairment loss in prior
periods.

Impairment loss is recognized when *

1/1

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Carrying amount is lower than the recoverable amount.

Value in use is higher than fair value less cost to sell.
Fair value less cost to sell is higher than the carrying amount.
Value in use is lower than carrying amount.

A government agency purchased a computer software worth P5,600,000

with a useful life of 5 years. After 3 years, it has an indication of
impairment. Based on the data gathered, the fair value less cost to sell of
the software is P2,200,000 while its value in use amounted to P2,000,000.
Compute for the impairment loss. *
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P0
P200,000
P240,000
P40,000

An intangible asset is initially measured at *

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Carrying amount
Cost

Fair value less cost to sell

Fair value

f the lease payments cannot be allocated reliably between the land and the
building elements, the entire lease is classified as a ___________. *
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Operating lease
Either operating or finance lease
Finance lease

Neither operating or finance lease

Infrastructure Assets are immovable assets and are accounted for as other
items in PPE. Which of the following is not an example of an infrastructure
asset? *

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Bus stations
Prison and court houses
Community and sports facilities
Historical buildings

At the end of each year, the entity shall perform a physical count of PPE and
prepare a Report on the Physical Count of Property, Plant and Equipment.
This report is submitted *
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To the COA not later than January 31 of the following year.

To the DBM after January 31 of the following year.

To the COA after January 31 of the following year.
To the DBM not later than January 31 of the following year.

The following are characteristics of financial liabilities, except *

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A contractual obligation to exchange one asset of the entity to another asset of the
entity.

A contractual obligation to deliver cash or another financial asset to another entity.

A contractual obligation to exchange financial assets or financial liabilities with
another entity under conditions that are potentially unfavorable to the entity.
A contract that will or may be settled in the entity’s own equity instruments.

On January 1, the patent was initially recognized at P100,000. How much

will be its carrying value at the end of the year considering it has a useful
life of 8 years? *
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P100,000
P90,000
P82,500
P87,500

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Transfers to or from investment property shall be made only when there is

a*
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Change in use

Change in administration
Change in materiality
Change in recognition

Part 3
25 of 26 points

The entity reported revenue of P40,500,000 for the year 2020, other
operating revenues amounting to P18,000,000, and total expenses of
P45,000,000. The entity discovered in 2021 that the revenue recognized in
2020 has been inadvertently omitted in the amount of P6,200,000. What is
the correct net income in the year 2020? *
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P6,200,000
P19,700,000

P7,300,000
P13,500,000

General-purpose financial statements shall be presented ____________. *

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Completely every bimonthly
As often as possible
At least annually

Must be on a quarterly basis

An entity is required to present its financial statements using its functional

currency. If nominal accounts are translated, what appropriate rate must be
used? *
1/1
Closing rate at the date of the statement of financial position
Exchange rate at the fair value measurement date
Exchange rate at the date of the transactions

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Closing rate at the date of the transactions

Unconditional promise is classified as *

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Temporarily unrestricted contribution
Permanently restricted contribution
Unrestricted contribution
Temporarily restricted contribution

The statement of financial position of the government entity must be

presented in *
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All of the these

Comparative format
Condensed format
Detailed format

Under fund accounting, the main accounting unit is the fund. Accordingly,
transactions are accounted for in the books and presented in the financial
statements strictly based on their fund classifications, except *
1/1
Temporarily unrestricted

Temporarily restricted
Unrestricted
Permanently restricted

How frequent is the preparation of interim financial statements by

government entities? *
1/1
Quarterly

Semiannual
Bimonthly
Monthly

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Compute for the operating activities of a certain government entity given

the following items: *
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P4,100,000

P8,100,000
P7,900,000
P5,000,000

Which among the following PFRS principles that are also applicable to
NPOs? *
1/1
Recognition criteria for assets and liabilities
All of the given choices.

An asset is derecognized when it ceases to provide inflow of resources embodying

economic benefits.
Preparation of financial statements must be fairly presented and in accordance with
PFRS.

The revenues of NPO are majority came from *

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Leasing
Charitable contributions

Tax collections
Sale of goods

According to PAS 1 Presentation of Financial Statements, a non-profit entity

that applies the PFRSs *

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Need not present an additional statement of financial position in cases where the
entity applies an accounting policy retrospectively, restate its financial statements
retrospectively, or make reclassification adjustments during the period.
May suffer negative consequences.
Must adopt all of the terminologies and principles under the PFRSs without any
exception.
May need to amend the descriptions used for particular line items in the financial
statements and for the financial statements themselves.

Which of the following principles used by business entities is not applicable

to non-profit organizations? *
1/1
Accrual basis of accounting
Going concern
Use of fair value measurement
Disclosure of earnings per share

These funds are restricted at the sole discretion of the NPO's governing
board. *
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Agency Fund
Plant Fund
Board-designated Fund

Endowment Fund

In current practice, the financial reporting for non-profit organizations

observe, except *
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Adopts PFRS principles

Focuses on the reporting entity concept

Focuses on fund accounting
Is essentially similar to that of business entities

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Under RA No. 7718, this concession arrangement wherein the private

company awarded with the contract undertakes to finance the construction
of an infrastructure facility and operate it for a fixed term not to exceed 50
years. *
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Build-transfer-and-operate
Contract-add-and-operate
Build-operate-and-transfer

Rehabilitate-operate-and-transfer

Which among the following is not considered to be the general principle in

preparing financial statements? *
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Compliance with PSA

Comparative information
Fair presentation
Going concern

On June 2, 2021, the Bureau of Treasury received credit advice amounting

to $1,000,000 from the BSP for a loan received from World Bank for the
rehabilitation of roads in provinces affected by calamities. The loan is
payable within 30 years. Exchange rate at the transaction date is P46:$1,
average rate of P46.50:$1, and closing rate of P47:$1. How much should be
recognized from the loan received from the World Bank? *
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P47,000,000
P46,000,000

P46,500,000
P0

Which of the following is not a form and structure of a joint venture? *

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Jointly controlled operations
Jointly controlled assets
Jointly controlled liabilities

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Jointly controlled entities

An entity shall present a statement of changes in net assets/equity showing

on the face of the statement *
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Surplus or deficit for the period

The effects of changes in accounting policies and corrections of errors for each
component of net asset/equity disclosed
Total revenue and expense for the period
Receipt of NCA

Entities A and B tendered jointly for a public contract with an LGU to

construct a motorway between two municipalities. Following the tender
process, the LGU awarded the contract jointly to entities A and B. In
accordance with the contractual arrangements, entities A and B are jointly
contracted with the LGU for delivery of the motorway in return for a fixed
price contract of P16 million. In accordance with the agreement between
entities A and B: *
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Debit: Construction in Progress-Infrastructure Assets P5,000,000;Credit: Cash in Bank-

Local Currency, Current Account P5,000,000

Debit: Construction in Progress-Infrastructure Assets P7,000,000;Credit: Accounts

Payable P7,000,000
Debit: Construction in Progress-Infrastructure Assets P5,000,000;Credit: Accounts
Payable P5,000,000
Debit: Construction in Progress-Infrastructure Assets P7,000,000;Credit: Cash in Bank-
Local Currency, Current Account P7,000,000

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Statement 1: If the operator is compensated partly by payments and partly

by grant of right, the grantor shall allocate the total liability to these
elements and account for them separately. Statement 2: The grantor uses
the same principle used for PPE and intangible assets to account for the
impairment or derecognition of service concession asset *
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Only statement 1 is true.
Only statement 2 is true.
Both statements are true.

Neither of the statements are true.

Which of the following financial statements are prepared by non-profit

organizations? *
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I, III and IV
I and II
I, II, III, and IV

I, II and IV

In examining the relationship between two entities, control is presumed to

exist when at least one of the following power conditions exists, unless
there is clear evidence of control being held by another entity. Which of the
following is the power condition? *
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The entity has the power, either granted by or exercised within existing legislation, to
appoint or remove a majority of the members of the board of directors or equivalent
governing body, and control of the other entity is by that board or by that body.
The entity has, directly or indirectly through controlled entities, ownership of a
majority voting interest in the other entity.
All of the given choices.

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The entity has the power to cast, or regulate the casting of, a majority of the votes
that are likely to be cast at a general meeting of the other entity.

Which of the following statements is peculiar to the government entities? *

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Statement of Financial Performance
Statement of Financial Position
Statement of Changes in Net Assets/Equity
Statement of Comparison of Budget and Actual Amounts

Contributions are measured at __________ at the date of contribution. *

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Historical cost
Fair value

Amortized cost
Net realizable value

The following are other reports required by the Commission on Audit to be

submitted by government entities, which is the exemption? *
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Pre-closing trial balance
Regional breakdown of income
Post-closing trial balance
Detailed worksheet

This form was created inside of Phinma Education.

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