ACCTG 11 ANSWER KEY CHAPTER 1 AND CHAPTER 2 QUIZ

ANSWER KEY CHAPTER 1 AND CHAPTER 2 QUIZ
QUIZ DATE: 9/19/2022

CHAPTER 1
True or False

1. Compared to the accounting for business entities, government
accounting places greater emphasis on the sources and utilization of
government funds and the management’s stewardship over
government resources.
2. Taxes are the main source of funds of the government.
3. Other sources of funds of the government include fees, borrowings,
and grants from other governments and international bodies.
4. Currently, the financial reporting of government entities is based NGAS.
5. 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.
6. The principles in the GAM for NGAS are similar to the principles in the
PFRSs.
7. The GAM for NGAS is promulgated by the Philippine Congress under
the authority conferred to it under the Philippine Constitution.
8. 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.
9. The GAM for NGAS is promulgated primarily to harmonize government
accounting standards with the U.S. GAAP.
10. 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.


ANSWERS:
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
6. TRUE
7. FALSE
8. TRUE
9. FALSE
10. FALSE

, b. The use of single entry recording system.
c. The use of accrual basis of accounting.
d. The presentation of budget information in the financial
statements.