Chapter 6-7 TB (Part 1) Flashcards
This comprise all funds derived from the income of any agency of the government and available for appropriation or expenditure in accordance with law.
Revenue funds
They determine the rules and regulations for recording and disbursing amounts received in trust and other business-type activities of the government.
Permanent committee
These are economic benefits or service potentials compulsory paid or payable to public sector agencies, in accordance with laws and/or regulations established to provide revenue to the government.
Taxes
Pertains to transfer of cash from another agency to implement the project of another agency.
Inter-agency transferred fund
Consist of voluntary transfer of assets including cash or other monetary assets, goods-in-kind, and services-in-kind that one agency makes to another, normally free from stipulations.
Gifts and donations
Are structured representations of the financial position and financial performance of an entity.
Financial statements
Shall be prepared after recording the closing and journal entries in the General Journal and posting these entries to the General Ledger.
Post-closing trial balance
A transfer of cash from another agency to implement the project of another agency.
Inter-agency transfer of funds
Are adjusting entries for economic activities already undertaken but not yet recorded as asset and revenue accounts or a liability and expense accounts.
Accrued items
The account to be used (debit) when the request for relief from accountability for shortages or loss of funds is granted.
Loss of assets
The cash overage discovered by the Auditor that cannot be satisfactorily explained shall be forfeited in favor of the government. It shall be taken up as ______.
Miscellaneous income
These are adjustment which involve unearned revenue where the agency receives the asset, usually cash, even before the income is actually earned.
Deferred items
Used to record the cumulative results of normal and continuous operations of an agency including prior period adjustments, effect of changes in accounting policy and other capital adjustments.
Accumulated surplus/(deficit)
Are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange.
Exchange transactions
Is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets/equity, other than increases relating to contributions from owners.
Revenue
(T/F) The Administrative Code of the National Government required that all income accruing to the departments, officers and agencies, by virtue of the provisions of existing laws, orders and regulations shall be deposited in the National Treasury or in the duly authorized depository bank of the government.
True
(T/F) If goods in-kind are received without conditions attached to it, the receiving entity shall recognize a liability.
False
(T/F) Donations in cash or in kind shall be recognized as revenue.
True
(T/F) If pledges are received and such are transferred to the recipient entity, the entity shall recognize a gift or donation.
True
(T/F) The agency, upon the receipt of performance bond in the form of cash or certified check, shall credit Guaranty/Security Deposits Payable.
True
(T/F) When fines were collected by an entity acting as an agent, the fine will be recognized as revenue by the said entity.
False
(T/F) Loans and borrowings are not income but always classified and accounted for, as revenues.
False
(T/F) Statement of Financial Performance is a statement summarizing all the cash activities of an agency.
False
(T/F) The criteria of usefulness states that the usefulness of financial statements is impaired if they are not made available to users within a reasonable period after the reporting date.
False
