TRUE OR FALSE. Please provide an explanation if false. 1. The budget preparation in the Philippines uses a "bottom-up” approach. Under this approach, the budget preparation starts from the highest levels of the government down to the lowest levels. 2. An entity prepares its budget by simply rolling-overbudget in the previous year and adjusting each line item by10% increment to reflect inflation. This process is described as zero-based budgeting. 3. After the budget call from the DBM, the proposed budget of various agencies are submitted immediately to the Office of the President for review. 4. An entity can incur obligations after receiving notice of its appropriation but before receiving the allotment. 5. Budget deliberations in the Congress start in the House of Senate. 6. A government entity must first receive an allotment before it can incur obligations. 7. A government entity can make disbursements even before it receives a disbursement authority. 8. Appropriation is also called obligational authority. 9. The Notice of Cash Allocation (NCA) is an authority issued by the DBM to central, regional and provincial offices and operating units to cover their cash requirements. 10. Responsibility accounting greatly enhances budget accountability because managers are evaluated only in terms of the costs or other variables that they control, and therefore, budget deviations can be readily attributed to the managers accountable therefor.
TRUE OR FALSE. Please provide an explanation if false.
|
1. The budget preparation in the Philippines uses a "bottom-up” approach. Under this approach, the budget preparation starts from the highest levels of the government down to the lowest levels. |
|
2. An entity prepares its budget by simply rolling-overbudget in the previous year and adjusting each line item by10% increment to reflect inflation. This process is described as zero-based budgeting. |
|
3. After the budget call from the DBM, the proposed budget of various agencies are submitted immediately to the Office of the President for review. |
|
4. An entity can incur obligations after receiving notice of its appropriation but before receiving the allotment. |
|
5. Budget deliberations in the Congress start in the House of Senate. |
|
6. A government entity must first receive an allotment before it can incur obligations. |
|
7. A government entity can make disbursements even before it receives a disbursement authority. |
|
8. Appropriation is also called obligational authority. |
|
9. The Notice of Cash Allocation (NCA) is an authority issued by the DBM to central, regional and provincial offices and operating units to cover their cash requirements. |
|
10. Responsibility accounting greatly enhances budget |
Step by step
Solved in 2 steps
