Chapter 14 - Quiz a.
retrospective restatement
b. prospective restatement
1. It shows the entity’s financial condition as at a
c. prospective application
certain date.
d. retrospective application
2. It shows the revenue, expenses and surplus or
17. The Notice of Cash Allocation (NCA) is least
deficit for the period.
likely to be reported in which of the following
3. A principle where it requires proper selection financial statements?
and application of accounting policies in a. Statement of Financial Position
accordance with the PPSAS. b. Statement of Financial Performance
c. Statement of Cash flows
4. Financial statements shall be presented at d. Notes to the Financial Statements
least _____.
True or false.
5. It presents all the asset, liability and equity
accounts in the Revised Chart of Accounts. 18. Government entities present information on
other comprehensive income just like business
6. The financial position shall show distinctions entities.
between ____ and ____ assets and liabilities
19. Prior period errors are corrected by
7. This shows the increase or decrease in the retrospective restatement.
entity’s net assets during the period resulting from
items of revenue and expense recognized directly 20. According to GAM for NGAs, government
in equity. entities shall present financial statements only.
8. This shows the sources and utilizations of cash Answers:
and cash equivalents during the period.
1. Statement of Financial Position
9. This statement shows the differences between 2. Statement of Financial Performance
budgeted amounts and actual results for a given 3. Fair Presentation
reporting period. 4. Annually
5. Detailed Statement of Financial Position
10. This refers to the original budget adjusted for 6. Current and Noncurrent
all reserves, carry-over amounts, realignments, 7. Statement of Changes in Net
transfers, allocations and other authorized Assets/Equity
legislative or similar authority changes applicable 8. Statement of Cash Flows
to the period. 9. Statement of Comparison of Budget and
11. The _______ Differences occur when the Actual Amounts
approved budget is prepared on a basis other 10. Final Budget
than the accounting basis. 11. Basis Differences
12. Notes to Financial Statements
12. It provides information in addition to those 13. Direct Method
presented in the other financial statements. 14. A
15. A
13. Cash flows from operating activities are
16. C
presented using the _______ Method.
17. A
14. The correction of prior period is accounted for 18. False
by 19. True
a. retrospective restatement 20. True
b. prospective restatement
b. prospective application
d. retrospective application
15. Government entities present cash flows from
operating activities using the
a. Direct method c. a or b
b. Indirect method d. neither a nor b
16. A change in accounting estimate is accounted
for by
