Transaction costs incurred in issuing financial liabilities are?

Group of answer choices

expensed outright

capitalized as assets and amortized using the effective interest method

added to the carrying amount of the financial liability

deducted from the carrying amount of the financial liability

This refers to charges for the use of cash or cash equivalents, or amounts due to the entity.

Group of answer choices

Financial expenses

Interest income

Capital outlays

Personnel services

According to P.D. 1445, government entities shall acknowledge receipts of revenue

Group of answer choices

through temporary receipts; provided a prior approval by COA is obtained.

through duplicate copies which shall not be the exact copies of the original.

through the issuance of properly endorsed checks.

through pre-numbered official receipts.

Which of the following statements best differentiates the government accounting process from the accounting process of a business entity?

Group of answer choices

The government accounting process involves procedures that are not generally acceptable for business entities.

The government accounting process involves numerous complicated steps or procedures that are beyond the understanding of a mere JPIA member, but not for a CPA.

The government accounting process is similar to that of a business entity, except that it incorporates budgetary controls, such as recording in the budget registries and preparing periodic budget accountability reports.

Unlike the accounting process of business entities which ends in the preparation of general purpose financial statements, the government accounting process ends with the audit by the COA.

Which of the following statements is correct regarding the Fundamental Principles for Disbursement of Public Funds under P.D. No. 1445?

Group of answer choices

Generally accepted principles and practices of accounting as well as of sound management and fiscal administration shall be observed and shall be presumed to have higher authority in cases where these principles conflict with the law.

No money shall be paid out of any public treasury or depository except through the issuance of Modified Disbursement System Checks.

All disbursements or dispositions of government funds or property shall invariably bear the approval of the COA.

Trust funds shall be available and may be spent only for the specific purpose for which the trust was created or the funds received.

Answer rating: 100% (QA)

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