True or False

• Compared to the accounting for business entities government accounting places greater emphasis on the sources and utilization of government funds and the managements stewardship over government agencies

  TRUE
• Taxes are the main source of funds of the government. TRUE
• Other sources of funds of the government include fees borrowings and grants from other governments and international bodies.

  TRUE
• Currently the financial reporting of government entities is based on NGAs.

  FALSE
• The principles used in the financial reporting of government entities are very unique that only a very few of these principles are similar to those that are applied to business entities. FALSE
• The principles in the are similar to the principles i GAM for NGAs n the PFRSs. TRUE
• The GAM for NGAs is promulgated by the Philippine Congress under the authority conferred to it under the Philippine Constitution. FALSE
• A unique financial reporting requirement of government entities is the use of fund cluster accounting. Under fund cluster accounting separate books and reports are prepared for each type of fund held by a government entity.

  TRUE
• The is promulgated primarily to harmonized governmen GAM for NGAs t accounting standards with the U.S. GAAP. FALSE
• An item is recognized as an asset if it meets both the "probable" future economic benefits" and "reliable measurement" criteria regardless of whether the item is a resource controlled arising from past events.

  FALSE
• The budget preparation in the Philippines uses a “bottom-up” approach. Under this approach the budget preparation starts from the highest levels of the government down to the lowest levels.

  FALSE
• The GAM for NGAs requires the Collecting Officer to issue an official receipt to acknowledge the receipt of the Notice of Cash Allocation. FALSE
• Taxes are compulsory payments imposed on persons properties or activities intended to provide revenue to the government. Taxes include fees fines and penalties.

  FALSE
• According to the GAM for NGAs the receipt of concessionary loans by government entities may give rise to revenue recognition.

  TRUE