Government Accounting

Chapter 2 Accounting for Budgetary Accounts

1. It is the system of prescribing the procedures for recording appropriations, allotments and
obligations.
a.
b.
c.
d.

Fund accounting
Budgetary accounting
Obligation accounting
Government accounting

2. As specifically provided for in the Constitution, no money shall be paid out of the
National Treasury except in the pursuance of
a.
b.
c.
d.

Budget
Presidents executive order
Fund
Appropriation

3. Zero base budget is

a. An authorization issued to allow the use of allotments to the last centavo (or zero
balance)
b. A budget where only additional requirements of the end-user need justification.
c. Systematic consideration of all agency programs, projects and activities with the
use of defined ranking procedures.
d. Any technique or procedure for developing numerical factors of converting work
units to quantitative statements of manpower.
4. A budget, the basis of which are the objects of expenditures.
a.
b.
c.
d.

Annual budget
Special budget
Line-item budget
Supplemental budget

5. In government accounting, which of the following is a capital outlay?

a.
b.
c.
d.

Salaries and wages

Repairs and maintenance
Land improvement
Merchandise inventory

6. It is a component of Budget Accountability Reports (BARs) that should be reported on

monthly basis.
a. Monthly cash program
b. List not yet due and demandable obligations
c. Estimate of monthly income
d. Statement of allotments, obligations and balances
7. The functions and activities necessary for the performance of major purpose for which a
government entity is established
a. Program
b. Project
c. Plan
d. Budget
8. As used in government budgeting, it comprises all the functions and activities devoted to
the accomplishment of a major purpose for which government entity is established
a. Program
b. Project
c. Plan
d. Budget
9. A subdivision of a program covering a homogenous group of activities and describing the
work to be done.
a. Program
b. Project
c. Plan
d. Budget
10. A document which sets out the chief measures that the government intends to take in
order to achieve defined goals of development.
a. Program
b. Project
c. Plan
d. Budget
11.
12. Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.

B
D
C
C
C
D
A
A
C
10. C