QUIZ #2

• Subsidiary Ledger


  Provides detailed information for each control account
• Unadjusted Trial Balance


  A list of the accounts in general ledger together with their balances
• Advances for Payroll


  An asset account according to the Revised Chart of Accounts (RCA) issued by the COA
• Revised Chart of Accounts (RCA) Code for liability

  Starts with number 2
• Revenue


  A gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in equity, other than increases relating to contributions from owners
• Revenues must be remitted to the National Treasury and included in the General Fund of the National Government
• All moneys and property received by a public officer are to be accounted for as government funds and government property, barring specific laws stating otherwise
• Amounts received in trust and from business-type activities of the government may be separately recorded and disbursed according to relevant rules
• Receipts shall be recorded as revenue of Special, Fiduciary, or Trust Funds, or Funds other than the General Fund, only when authorized by law
• A collecting officer must issue an official receipt (OR) promptly upon receiving a payment of any nature
• The Commission on Audit (COA) may require additional documentation for each transaction when mechanical devices, such as electronic official receipts, are utilized to acknowledge cash receipts
• Government accounting process


  1. Analyzing

  2. Recording

  3. Classifying

  4. Summarizing

  5. Communicating

  6. Interpreting
• Collecting officer's responsibility regarding payments to the government made in the form of checks

  Accept payments in the form of checks, upon proper endorsement and identification, without using government funds to encash private checks
• Conditions for revenue recognition from the sale of goods

  • Significant risks and rewards of ownership must be transferred to the buyer, the entity must not retain continuing managerial involvement or effective control over the goods sold, economic benefits must be probable, revenue must be measurable reliably, and costs relating to the transaction must be measurable reliably
• Recognition of revenue when services are performed by an indeterminate number of acts over a specified time frame

  Revenue is recognized on a straight line basis over the specified time frame, unless another method is deemed appropriate
• Measurement of revenues from exchange transactions

  Revenues are measured at the fair value of the consideration received or receivable, accounting for trade discounts and volume rebates
• Priority for measuring revenue in exchanges of goods or services with dissimilar nature and value


  Fair value of the goods or services received, adjusted by the amount of any cash transferred, takes precedence over the fair value of the goods or services given up, adjusted by the amount of any cash transferred
• Trust Fund


  A fund held by a government agency or public officer acting as trustee, agent, or administrator for the fulfillment of a condition
• The SAGF (Special Accounts in the General Fund) shall be considered as being automatically appropriated for purposes authorized by law, except when the General Appropriations Act (GAA) provides otherwise
• Once the purpose for which a special fund was created has been met or abandoned, any remaining balance is to be transferred to the general funds of the government
• The receipt of trade discounts, quantity discounts, or other reductions in price does not necessarily mean that the transaction is a non-exchange transaction
• Recognition of Gifts, Donations, and Goods In-Kind as revenue


  Gifts, donations, and goods in-kind without conditions are recognized immediately as revenue, while those with conditions are initially recognized as liabilities and recognized as revenue only when the conditions are met
• Both the accounting unit and the budget division are primarily responsible for maintaining registries
• Treatment of debt forgiveness in different scenarios

  Debt forgiveness by a lender results in revenue recognition for government entities, while for wholly owned controlled entities, it is treated as a contribution from owners
• Financial Expenses do not belong to typical budget categories of expenditures by object
• RBUD


  Used to record the approved special budget and the corresponding utilizations and disbursements charged to retained income
• The obligations shall be incurred through the issuance of