Local Government Fiscal Organization and Local Treasurer Duties

#1 BCLTE - LTOM Book 1 Chapter 1
Book One: Fiscal Organization of Local Governments and the Local Treasurer
Philippine Board Reviewer | Book 1 | Chapter 1 | 15 Questions
Chapter 1. Fiscal Organization of Local Governments
1. It is a body politic and corporate endowed with powers to be exercised by it in conformity with law.
 a. Government
 b. Local Government Unit
 c. Province
 d. City
 e. Barangay
2. The common requirements for creation of a local government unit or its conversion from one level
to another shall be based on the following:
 a. Sufficient Income
 b. Population within the territorial jurisdiction
 c. Contiguous Land Area
 d. All of the above
 e. None of the above
3. The determination of compliance to the common requirements for creation of an LGU or its
conversion shall be attested to by the following except:
 a. Department of Finance
 b. National Statistics Office
 c. Provincial Capitol
 d. Lands Management Bureau
 e. Department of Environment and National Resources
4. The income classification of local government units resulting from division and merger shall be
updated to reflect the changes in their financial position.
 a. Within 6 months from the effectivity of R. A. No. 7160
 b. Within a year from the effectivity of R. A. No. 7160
 c. Within 3 years from the effectivity of R. A. No. 7160
 d. Within 5 years the effectivity of R. A. No. 7160
5. A province may be created by an Act of Congress and subject to approval by a majority of the votes
cast in a plebiscite to be conducted by the COMELEC in the local government unit or units directly
affected. From the effectivity of said Act, the plebiscite shall be held within:
 a. 30 days
 b. 60 days
 c. 120 days
 d. One year
6. A contiguous territory as certified by the Lands Management Bureau to comply with the creation of
a province shall be at least:
 a. 100 square kilometers
 b. 2,000 square kilometers
 c. 10,000 square kilometers
 d. 50,000 square kilometers
7. A province may be created if it has an Average Annual Income for the immediately preceding 2
consecutive years based on 1991 constant prices, as certified by the Department of Finance, of not less
than:
 a. Php 2,500,000.00
 b. Php 20,000,000.00
 c. Php 50,000,000.00
 d. Php 100,000,000.00
 e. Php 250,000,000.00
8. The minimum population as certified by the National Statistics Office to comply with the requirement
for the creation of a province shall be:
 a. 25,000 inhabitants
 b. 100,000 inhabitants
 c. 150,000 inhabitants
 d. 250,000 inhabitants
 e. 500,000 inhabitants
9. A municipality or a cluster of barangays may be converted into a component city if it has a locally
generated Average Annual Income for the last 2 consecutive years based on 2000 constant prices, as
certified by Department of Finance, of a at least:
 a. Php 2,500,000.00
 b. Php 20,000,000.00
 c. Php 50,000,000.00
 d. Php 100,000,000.00
 e. Php 250,000,000.00
10. The minimum population as certified by the National Statistics Office to comply with the
requirement for the creation of a city shall be:
11. A contiguous territory as certified by the Lands Management Bureau to comply with the creation of
a city shall be at least:
 a. 100 square kilometers
 b. 2,000 square kilometers
 c. 10,000 square kilometers
 d. 50,000 square kilometers
12. A classification based on the minimum population of 200,000 inhabitants and Annual Income of at
least Php 50,000,000.00.
 a. Barangay
 b. Municipality
 c. Province
 d. Highly Urbanized Cities
 e. Component cities of the province
13. A municipality may be created if it has an Average Annual Income for the last 2 consecutive years
based on 1991 constant prices, as certified by the Department of Finance, of not less than:
 a. Php 2,500,000.00
 b. Php 20,000,000.00
 c. Php 50,000,000.00
 d. Php 100,000,000.00
 e. Php 250,000,000.00
14. The minimum population as certified by the National Statistics Office to comply with the
requirement for the creation of a municipality shall be:
15. The creation, division or abolition of alteration of boundaries of provinces, cities, municipalities, or
barangay within ARMM shall be determined and enacted by:
 a. Act of Congress
 b. Province
 c. Sanggunian
 d. Local Government Unit
 e. Regional Assembly
ANSWERS
1. b 6. b 11. a
2. d 7. b 12. d
3. c 8. d 13. a
4. a 9. d 14. a
5. c 10. c 15. e
Passing Score: 12 (80%)

Chapter 2. Appointment, Qualifications, Powers and Functions of the Local Treasurer, the Assistant
Treasurer, and the Barangay Treasurer
1. The number of ranking eligible recommendees of the governor or mayor, as the case may be, subject
to civil service law, rules and regulations from which the Secretary of Finance shall appoint a Local
Treasurer.
 a. 2
 b. 3
 c. 4
 d. 5
2. The following are some of the requirements for the appointment of a Local Treasurer except:
 a. A resident of the local government unit concerned
 b. A holder of a college degree
 c. A Certified Public Accountant
 d. A first grade civil service eligible or its equivalent
 e. Years of experience in treasury or accounting service
3. The plantilla of personnel in the local government unit concerned in relation to the position of Local
Treasurer should show the following information except:
 a. Designation of Position
 b. Appropriation or Budget Item Number
 c. Range/Salary Grade of the Position
 d. Documents establishing compliance to the prescribed requirements
 e. Authorized and Actual Salary per annum
4. The delegation of the Appointing Authority over Provincial, City and Municipal Treasurers and their
Assistants may be given by the Secretary of Finance to:
 a. BLGF Executive Director
 b. Local Treasurer
 c. Provincial Governor
 d. Department of Budget and Management
 e. Local Chief Executive
5. Requests for relief, transfer, or detail of Treasurers and Assistant Treasurers shall be acted upon only
for justificable reasons and after compliance with the requisites of due process comprising with the
following except:
 a. Treasurer consents to the action taken
 b. Completion of the final audit finding of cash shortage and properly validated
 c. Termination of the formal investigation
 d. Treasurer has been formally charged with a grave offence
 e. 90 day preventive suspension has expired
6. Unless sooner revoked, the designation of the OIC/ICO of Local Treasury Offices and Acting Assistant
Provincial/City/Municipal Treasurers shall be a period of:
 a. 3 months
 b. 6 months
 c. 1 year
 d. 3 years
 e. 6 years
7. The designation, conditioned upon a satisfactory performance and in the absence of any derogatory
report and/or adverse information against the designate, can be extended only:
 a. Once
 b. Twice
 c. Thrice
 d. Upon recommendation by the Local Chief Executive
8. Designations and extensions thereof shall be processed by the Regional Office within:
 a. Within 3 days before the expected temporary or permanent vacancy
 b. Within 5 days before the expected temporary or permanent vacancy
 c. Within 10 days before the expected temporary or permanent vacancy
 d. Within 15 days before the expected temporary or permanent vacancy
9. Submissions by the Regional Office for designations and extensions thereof shall be confirmed within:
 a. 10 days from the issuance of the Order
 b. 15 days from the issuance of the Order
 c. 30 days from the issuance of the Order
 d. 45 days from the issuance of the Order
 d. None of the above
10. Submission by the BLGF Regional Director for designations shall be acted upon by the Executive
Director and Bureau of Local Government Finance within:
 a. 5 days from receipt
 b. 10 days from receipt
 c. 15 days from receipt
 d. 30 days from receipt
11. Designation submitted to the BLGF for confirmation shall be accompanied by the following
documents except:
 a. Regional Special Personnel Order
 b. Recommendations of the BLGF Regional Director and the Local Chief Executives concerned
 c. Recommendation of the Provincial/City Treasurer, when applicable
 d. Updated Personal Data Sheet
12. An official or employee designated by proper authority in a temporary capacity to discharge the
duties and functions of the head of the Local Treasury Office (Provincial/City/Municipal) in a caretaker
capacity and with certain limitations of the powers, authority and prerogatives normally exercised by
the head of the office.
 a. Officer-in-Charge
 b. In-Charge of Office
 c. Local Treasurer
 d. Assistant Local Treasurer
 e. Barangay Treasurer
13. An official or employee designated by proper authority in a temporary capacity to discharge fully
the powers and responsibilities of the head of the Local Treasury Office (Provincial/City or Municipal),
with the same rights and prerogatives of the latter, except the right to receive the salary appurtenant
thereto.
 a. Officer-in-Charge
 b. In-Charge of Office
 d. Assistant Local Treasurer
 e. Barangay Treasurer
14. An OIC-Provincial/City/Municipal Treasurer shall continue to receive his/her salary from his/her
regular station for a period of:
 a. 30 days
 b. 60 days
 c. 90 days
 d. 120 days
 e. 150 days
15. The Assistant Municipal Treasurer who automatically assumes as ICO shall notify the BLGF Regional
Director concerned, thru the Provincial Treasurer, of the absence, sickness, death of other incapacity of
the regular incumbent and of the date of his/her assumption in a caretaker capacity within:
 a. 24 hours
 b. 48 hours
 c. 7 days
 d. 15 days
 e. 30 days
16. The following do not meet the requirements for a person to be appointed Barangay Treasurer
except:
 a. A sangguniang barangay member
 b. A government employee
 c. A relative of the punong barangay within the 4th civil degree of consanguinity or affinity
 d. Not a Certified Public Accountant
17. A Local Treasurer who is reinstated after having been illegally dismissed is considered as not having
left his office and should be given comparable compensation at the time of his reinstatement in an
amount not exceeding:
 a. 6 months salary
 b. 1 year salary
 c. 2 years salary
 d. 5 years salary
 e. 10 years salary
18. The approval of application for leave of Provincial, City and Municipal Treasurers and Assistant
Provincial, City and Municipal Treasurers where he intends to leave the country regardless of duration
shall be by:
 b. BLGF Regional Director
 c. Local Chief Executive
 d. Barangay Chairman
 e. BLGF Executive Director
19. Application of vacation leave of Assistant Provincial/City/Municipal Treasurer for a period
exceeding 15 days shall be approved by:
 b. BLGF Regional Director
 c. Local Chief Executive
 d. Barangay Chairman
 e. BLGF Executive Director
20. Provincial/City/Municipal Treasurer and Assistant Provincial/City/Municipal Treasurer may avail of

maternity or paternity leave which shall be non-cumulative and non-commutative, immediately before,
during or after the childbirth or miscarriage of their legitimate spouse, of not more than:
 a. 3 days
 b. 5 days
 c. 7 days
 d. 10 days
 e. 14 days
ANSWERS
1. b 6. b 11. e 16. d
2. c 7. b 12. b 17. d
3. d 8. d 13. a 18. a
4. a 9. a 14. c 19. b
5. c 10. c 15. a 20. c

#3 BCLTE - LTOM Book 1 Chapters 3-6
Philippine Board Reviewer | Book 1 | Chapters 3-6 | 20 Questions
Chapter 3. Administrative and Technical Supervision by the Bureau of Local Government Finance (BLGF)
1. The BLGF Regional Officers shall perform the following administrative and technical functions
involving local treasury operations except:
 a. Supervise and coordinate the conduct of local treasury and assessment operations of provinces,
cities and municipalities within the region for the proper implementation of laws, decrees, rules,
regulations and administrative issuances of the Department of Finance.
 b. Coordinate the plans, programs and activities of local treasury and assessment offices in the
conduct of tax collection drives and tax information and education campaigns.
 c. Conduct regional training programs, seminars, workshops and other allied activities for the
improvement of the administrative and technical skills in the local treasury offices.
 d. See to it that payment of taxes of a business is not avoided through simulation of the retirement
thereof and recommend to the Mayor for the disapproval of the application for the termination
or retirement of the business.
 e. Undertake measures that would lead to efficient administration of local treasury operations.
Chapter 4. The Roles and Responsibilities of Local Treasurers
2. The following are the duties and responsibilities of the Provincial, City, and Municipal Treasurer
except:
 a. Collection of Local Revenues
 b. Collection of Real Property Tax
 c. Custody and Requisition of Accountable Forms
 d. General and Specific Functions
3. The provincial, city or municipal treasurers or his deputy shall prepare a certified list of all real
property tax delinquencies which remained uncollected or unpaid for at least one year in his
jurisdictions and submit the same to the sanggunian concerned on or before:
 a. April 14 of each year
 b. July 15 of each year
 c. September 5 of each year
 d. December 31 of each year
4. The Local Treasurer shall submit certified statement covering income and expenditures to the LCE on
or before:
5. The City or Municipal Treasurer, jointly with the City or Municipal Accountant, shall issue a certified
statement covering actual income on or before:
6. The Local Treasurer shall be a member of the following Local Committees and Boards except:
 a. Selection and Promotion Board of the BLGF Offices
 b. Local Finance Committee
 c. Bids and Awards Committee
 d. Local School Boards
 e. Appraisal Committee for purposes of expropriation and purchase of real property
Chapter 5. Other Roles of the Local Treasurer
7. Specific role of the Local Treasurer in the enactment or amendment of revenue ordinance of Local
Government Units include the following except:
 a. Update on the tax information system
 b. Advice on the adequacy of taxes, fees and charges and continued relevance of certain
impositions
 c. Update on the adjustment of fees and charges
 d. Dissemination of tax ordinances and revenue measures
8. The Local Government Code of 1991 allows the rates of taxes to be adjusted only once every:
 a. 3 years
 b. 5 years
 c. 10 years
 d. 15 years
9. The members of the Bids and Awards Committee shall be:

 a. 5-7 members
 b. 5-9 members
 c. 10-12 members
 d. 10-15 members
 e. Any number
10. It is an inter-agency board created under the Government Procurement Reform Act or R A. No. 9184
chaired by the Secretary of DBM.
 a. Bids and Awards Committee

 b. Local School Boards
 c. Local Finance Committee
 d. Government Procurement Policy Board
 e. Appraisal Committee
11. The keys of the padlocks of the ballot box upon the termination of the counting of the votes shall
be placed in separate envelopes, sealed and signed by all members of the board and delivered by a
COMELEC representative to the following except:
 a. Provincial Treasurer
 b. Provincial Governor
 c. Provincial Fiscal
 d. Provincial Election Supervisor
12. The Board of Canvassers must complete their canvass in the provinces within:
 a. 24 hours
 b. 36 hours
 c. 48 hours
 d. 72 hours
 e. 96 hours
13. The Board of Canvassers must complete their canvass in the municipalities within:
 a. 24 hours
 b. 36 hours
 c. 48 hours
 d. 72 hours
 e. 96 hours
14. The Board of Canvassers must complete their canvass in the cities within:
 a. 24 hours
 b. 36 hours
 c. 48 hours
 d. 72 hours
 e. 96 hours
Chapter 6. Bond for Local Treasurers and Other Accountable Officers of Local Government Units
15. The procedure for bonding are as follows except:

 a. Notice to the Bureau of the Treasury
 b. General Form No. 57 (A)
 c. General Form No. 58 (A)
 d. Endorsement to the Bureau of the Treasury
 e. Certification from the Secretary of DBM
16. The Barangay Treasurer shall be bonded with the Fidelity Fund immediately upon assumption of
office in the amount to be determined by the Sangguniang Barangay but not to exceed:
 a. Php 5 million
 b. Php 1 million
 c. Php 100,000.00
 d. Php 50,000.00
 e. Php 10,000.00
17. At what percentage of their total value should the corresponding bond for Accountable Forms
involving Cash Tickets, Cattle Registration Certificates, and Marriage Certificates be?
 a. 5%
 b. 10%
 c. 15%
 d. 20%
 e. 25%
18. An official/employee who has both money and property accountability, shall be bonded only once
to cover both accountabilities, but the amount of the bond shall be in accordance with the Schedule of
Cash Accountability, provided however, that the amount of bond shall not exceed:
 a. Php 5 million
 b. Php 1 million
 c. Php 100,000.00
 d. Php 50,000.00
 e. Php 10,000.00
19. The Fidelity Fund shall not be used for the following except:
 a. To replace fines imposed on bonded officials/employees as a result of criminal conviction for
violation of the Revised Penal Code or any penal law.
 b. To pay for defalcations, shortages and unrelieved accountability after all possible means of
recovery of the amount from the accountable official or employee have been exhausted.
 c. To answer the liability of a bonded official/employee convicted of estafa through falsification
of public documents in his/her capacity as private individual.
 d. To refund the accountability of a bonded official/employee found short in accountability but
not removed or relieved of the duties.
 e. None of the above.
20. Approved fidelity bonds are valid:

 a. For 5 years
 b. For 3 years
 c. For 1 year
 d. For 6 months
 e. During the duration of appointment
ANSWERS
1. d 6. a 11. b 16. e
2. e 7. e 12. d 17. b
3. d 8. b 13. b 18. a
4. b 9. a 14. c 19. b
5. c 10. d 15. e 20. c

#4 BCLTE - LTOM Book 2 Chapter 1A
Book Two: Receipts and Collection of Local Income, Revenues and Other Fund Sources
Chapter 1. Types of Local Income and Revenues Collected by Local Government Units
1. It refers to all revenues and receipts collected or received forming the gross accretions of funds of
the local government unit.
 a. Taxes
 b. Revenue
 c. Cash collection
 d. Income
 e. Profit
2. It has the power to create its own sources of revenue and to levy taxes, fees and charges subject to
the provisions of the Local Government Code of 1991, consistent with the basic policy of local
autonomy.
 a. Province
 b. Local Government Unit
 c. City
 d. Congress
 e. Office of the President
3. The authority of the government to classify the object of taxation, to be valid, must be reasonable
and this requirement is not deemed satisfied unless:
 a. It is based upon substantial distinctions which make the real differences.
 b. These are germane to the purpose of the legislation or ordinance.
 c. The classification applies, not only to present conditions, but, also, to future conditions
substantially identical to those of the present.
 d. The classification applies equally to all those who belong to the same class.
 e. All of the above
4. The following describe what the taxes, fees and other impositions shall be except:
 a. uniform under all circumstances.
 b. equitable and based as far as possible on the taxpayer’s ability to pay.
 c. levied and collected only for public purposes.
 d. not unjust, excessive, oppressive, or confiscatory.
 e. not contrary to law, public policy, national economic policy, or in restraint of trade.
5. The following are the requirements for a local ordinance to be valid except:
 a. not contravene the Constitution or any stature.
 b. not be partial or discriminatory.
 c. be general and consistent with public policy.
 d. neither prohibit nor regulate trade.
6. The conduct of public hearings shall be governed by the following procedure except:
 a. Pre-publication/posting and written notices to interested/affected parties
 b. Public hearing prior to enactment of the tax ordinance or revenue measure
 c. Preparation of minutes by the secretary of the sanggunian
 d. Approval and publication of tax ordinance and revenue measures
 e. Dissemination of approved copies to interested parties
7. The local chief executive may veto any ordinance of the sangguniang panlalawigan, sangguniang
panlungsod, or sangguniang bayan. He/she shall communicate the veto:
 a. Within 15 days in the case of a province
 b. Within 10 days in the case of a city
 c. Within 10 days in the case of a municipality
8. Approved tax ordinances and revenue measures shall be published within:

 a. 3 days from approval
 b. 10 days from approval
 c. 15 days from approval
 d. 30 days from approval
 e. 60 days from approval
9. The Sangguniang Panlalawigan shall review the approved city or municipal ordinances or resolutions
within:
 a. 3 days from approval
 b. 10 days from approval
 c. 15 days from approval
 d. 30 days from approval
 e. 60 days from approval
10. The city or municipal ordinance or resolution shall be presumed consistent with law and therefore
valid if no action has been taken by the sangguniang panlalawigan within:
 a. 3 days
 b. 10 days
 c. 15 days
 d. 30 days
 e. 60 days
11. Appeal on the constitutionality or legality of an ordinance may be made within 30 days to the
Secretary of Justice who shall render a decision within:
 a. 3 days from receipt of the appeal
 b. 10 days from receipt of the appeal
 c. 15 days from receipt of the appeal
 d. 30 days from receipt of the appeal
 e. 60 days from receipt of the appeal
12. The penalties for violation of tax ordinances prescribed by the local government unit:
 a. is a fine between Php 1,000.00 – Php 5,000.00
 b. is imprisonment from 1 to 6 months
 c. shall be either or both of the above
 d. shall only be either of the above
 e. shall always be both of the above
13. The following are some of the taxes, fees and charges specifically reserved to provinces except:
 a. Professional Tax (Sec. 139, LGC)
 b. Tax on Business (Sec. 143, LGC)
 c. Tax on Business of Printing and Publication (Sec. 136, LGC)
 d. Franchise Tax (Sec. 137, LGC)
 e. Amusement Tax (Sec. 140, LGC)
14. The following are the taxes, fees and charges that may be levied by the municipalities and not
otherwise levied by provinces except:
 a. Community Tax (Sec. 156, LGC)
 b. Fees for Sealing and Licensing of Weights and Measures (Sec. 148, LGC)
 c. Fishery Rentals, Fees and Charges (Sec. 149, LGC)
 d. Tax on Sand, Gravel and Other Quarry Resources (Sec. 138, LGC)
 e. Fees and Charges on Business and Occupation (Sec. 236, LGC)
15. Except the rates of professional and amusement taxes, the rates of taxes that the city may levy may
exceed the maximum rates allowed for the province or municipality by not more than:
 a. 50%
 b. 40%
 c. 30%
 d. 20%
 e. 10%
ANSWERS
1. d 6. e 11. e
2. b 7. d 12. c
3. e 8. b 13. b
4. a 9. a 14. d
5. d 10. d 15. a

#5 BCLTE - LTOM Book 2 Chapter 1B
Philippine Board Reviewer | Book 2 | Chapter 1B | 15 Questions
Chapter 1. Types of Local Income and Revenues Collected by Local Government Units
1. The rate of tax on stores or retailers with fixed business establishments with gross sales or receipts
of the preceding calendar year of Php 50,000.00 or less, in the case of cities and Php 30,000.00 or less,
in the case of municipalities, shall not exceed:
 a. 5% on such gross sales or receipts
 b. 4% on such gross sales or receipts
 c. 3% on such gross sales or receipts
 d. 2% on such gross sales or receipts
 e. 1% on such gross sales or receipts
2. The application for Barangay clearance for any business or activity shall be acted upon within:
 a. 24 hours from filing thereof
 b. 3 working days from filing thereof
 c. 7 working days from filing thereof
 d. 15 working days from filing thereof
3. The barangay may levy reasonable fees and charges for the following except:
 a. On commercial breeding of fighting cocks, cockfights and cockpits
 b. On business and occupation
 c. On places of recreation which charge admission fees
 d. On billboards, signboards, neon signs, and outdoor advertisements
4. Local government units share from the income generated by the national government from all taxes
and revenue sources for the following except:
 a. Internal Revenue Allotment (IRA)
 b. Tobacco Excise Tax
 c. Proceeds from the utilization of national wealth within their territorial jurisdiction
 d. Special shares from other national taxes, particularly on ECOZONES and specified portions of
the Value Added Tax
5. It refers to a shortfall of revenues against disbursements.

 a. Bankruptcy
 b. Fiscal Losses
 c. Budget deficit
 d. Variance
 e. Public sector deficit
6. The share of all provinces from the total annual Internal Revenue Allotment (IRA) shall be at an
allocation of:
 a. 20%
 b. 30%
 c. 34%
 d. 23%
 e. 33%
7. The share of all municipalities from the total annual Internal Revenue Allotment (IRA) shall be at an
allocation of:
 a. 20%
 b. 30%
 c. 34%
 d. 23%
 e. 33%
8. The share of all barangays from the total annual Internal Revenue Allotment (IRA) shall be at an
allocation of:
 a. 20%
 b. 30%
 c. 34%
 d. 23%
 e. 33%
9. Every barangay with a population of not less than 100 inhabitants shall be entitled to an Internal
Revenue Allotment (IRA) chargeable against the 20% share of the barangay from the total IRA of not
less:
 a. Php 20,000.00
 b. Php 40,000.00
 c. Php 60,000.00
 d. Php 80,000.00
 e. Php 100,000.00
10. The individual shares in Internal Revenue Allotment (IRA) of each LGU shall be automatically
released direct to the provincial, city, municipal, or barangay treasurer, as the case may be, on:
 a. a monthly basis
 b. a quarterly basis
 c. a semi-annual basis
 d. an annual basis
11. At what minimum percentage of the Internal Revenue Allotment (IRA) for the year be mandatory
for each LGU to asset aside in its annual budgets as appropriation for local development projects that
are embodied or contained in the local development plans?
 a. 5%
 b. 10%
 c. 20%
 d. 30%
12. It refers to the natural resources situated within the Philippine territorial jurisdiction including lands
of public domain waters, minerals, coal, petroleum, mineral oils, potential energy forces, gas and oil
deposits, forest products, wildlife, flora and fauna, fishery and aquatic resources and all quarry
products.
 a. Land resources
 b. Sovereignty
 c. Forestry
 d. National territory
 e. National wealth
13. From the gross collection derived by the national government from the preceding fiscal year from
the mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges as well
as administrative charges accruing to the national government, the LGU shall, in addition to the IRA,
have a share of:
 a. 10%
 b. 20%
 c. 30%
 d. 40%
14. In lieu of the national and local taxes, businesses and enterprises in Special Economic Zones shall
pay gross income tax of:
 a. 1%
 b. 3%
 c. 5%
 d. 10%
 e. 12%
15. Other common sources of LGU revenues outside taxation, fees and charges, and shares in national
taxes and wealth are the following except:
 a. Donations
 b. Sale of Fixed Assets
 c. Contributions
 d. Sale of Waste Materials
 e. Interest Income
ANSWERS
1. e 6. d 11. c
2. c 7. c 12. e
3. b 8. a 13. d
4. e 9. d 14. c
5. c 10. b 15. a

Chapter 2. Collection of Revenues and Other Receipts
1. For drawing of checks payable to the LGU, under no circumstances shall the following checks be
accepted except:
 a. Post-dated or Stale checks
 b. Checks drawn payable to the official title or designation of the LCE or Treasurer of the LGU
 c. Indorsed checks
 d. Checks drawn payable to “Cash”
 e. Checks drawn payable to the name of the Head of the LGU or any of its officers
2. Upon receipt of the dishonored check and debit memo from the depository bank concerned, the
collecting officer or Local Treasurer shall accomplish the “Notice of Dishonor” and sign it in behalf of
the local chief executive within:
 a. 24 hours
 b. 2 days
 c. 3 days
 d. 5 days
 e. 7 days
3. The local chief executive upon the recommendation of the Local Treasurer, shall immediately
transmit the certified copies of the dishonored check, debit memo from the bank and notice of dishonor
to the city or provincial prosecutor if the drawer of the dishonored check due to lack or insufficiency of
funds fail to settle his account within:
 a. 24 hours from receipt of the notice of dishonor
 b. 2 days from receipt of the notice of dishonor
 c. 3 days from receipt of the notice of dishonor
 d. 5 days from receipt of the notice of dishonor
 e. 7 days from receipt of the notice of dishonor
4. Unless the court shall direct otherwise, pending their redemption, dishonored checks shall remain in
the custody of:
 a. Local Chief Executive
 b. COA Auditor
 c. Local Accountant
 d. Disbursing bank
 e. Local Treasurer
5. The following are Accountable Forms with money value except:

 a. Checks
 b. Cash Tickets
 c. Certificate of Transfer of Large Cattle
 d. Certificate of Ownership of Large Cattle
 e. Marriage License Certificate
6. Issuance of Accountable Forms to bonded officers has to be in sufficient quantities based on their
actual needs but not to exceed use of:
 a. 1 month
 b. 3 months
 c. 6 months
 d. 1 year
7. All Provincial, City and Municipal Treasurers shall deposit their funds and maintain deposit accounts
with Land Bank of the Philippines and Development Bank of the Philippines. By way of exception, and
subject to prior approval of the Department of Finance, they may likewise do so with the following
except:
 a. Bank of the Philippine Islands
 b. Philippine National Bank
 c. Philippine Postal Savings Bank
 d. Philippine Veterans Bank
 e. Al Amanah Islamic Investment Bank of the Philippines
8. The Barangay Treasurer shall deposit all collections with the city or municipal treasury or in the
depository account maintained in the name of the barangay within:
 a. 1 day after receipt thereof
 b. 2 days after receipt thereof
 c. 3 days after receipt thereof
 d. 5 days after receipt thereof
 e. 7 days after receipt thereof
9. It refers to available cash which the local government unit can freely invest in government securities
and/or fixed term deposits with authorized government depository banks.
 a. Idle funds
 b. Collections
 c. Taxes
 d. Bank deposits
 e. Cash in Treasury
10. The Treasurer shall maintain the following cashbooks except:

 a. Cashbook – Cash in Treasury
 b. Cashbook – Cash in Bank
 c. Cashbook – Daily Recording
 d. Cashbook – Cash Advances
11. It shall be maintained by individual Tellers, Fields and Market Collectors and other authorized
personnel receiving collections outside of the local government office.
 a. The Treasurer’s Cashbook
 b. The Teller’s/Collector’s Cashbook
 c. Certificate of Transactions in the Cashbook
 d. The Liquidating Officer’s Cashbook
12. It shall be used by the designated Liquidating Officer to record all collections turned over to him by
Tellers, Field and Market Collectors, and remittances to the Local Treasurer/Cashier.
 a. The Treasurer’s Cashbook
 b. The Teller’s/Collector’s Cashbook
 c. Certificate of Transactions in the Cashbook
 d. The Liquidating Officer’s Cashbook
13. The Report of Collections and Deposits shall be prepared daily by:
 a. Tellers/Collectors
 b. Liquidating Officers
 c. Local Treasurer/Cashier
Chapter 3. Examination of Books of Accounts and Pertinent Records of Businessmen by Local Treasurers
14. The following shall govern the examination by the Local Treasurer of books of accounts and
pertinent records of businessmen except:
 a. Examination of Books of Accounts and Pertinent Records of Businessmen
 b. Authority to Conduct Examination or provide the Written Authority to qualified officers
 c. Deputize the Administrative Officer of the Sangguniang Panlungsod to examine the books of
accounts of business establishments
 d. Time, Frequency and Certification
 e. Access to the Bureau of Internal Revenue Records
15. In case the books of accounts and other records are not available on the first visit, another
appointment with the business owner/representative, after serving the Letter of Authority, should be
made not later than:
 a. 3 days
 b. 5 days
 c. 7 days
 d. 15 days
 e. 30 days
16. The deputized Examiners shall perform the following activities except:
 a. Review of pertinent records of the business establishment to be examined
 b. Review of the working papers, if any, of the business establishment, if previously examined
 c. Submission to the Owner/President of the business establishment to be examined the Letter of
Appointment/Authority to conduct the examination
 d. Acceptance of books of accounts and documents for verification/examination
 e. Preparation of Bank Reconciliation Statements
17. It shows the comparison between the gross receipts/sales declared per business permit application
and the gross receipts/sales as appearing in the sales documents examined.
 a. Letter of Confirmation/Certificate of Confirmation/Certificate of Examination
 b. Tax Data Working Papers or Tax Data Sheet
 c. Letter of Assessment/Assessment Notice
 d. Tax Data and Assessment Form
18. It shows the detailed computation of the additional assessment for business tax based on the
computed understatement of sales/receipts declared in the business permit application, the amount of
surcharges and penalties, the interest on the deficiency tax assessed, as well as the signatures of the
Examination Team and the Local Treasurer.
19. It shows the amount of tax deficiency inclusive of penalties, surcharges and interest resulting from
the conduct of the examination.
20. Its issuance signifies the completion of the examination conducted.
ANSWERS
1. b 6. b 11. b 16. e
2. c 7. a 12. d 17. b
3. d 8. d 13. e 18. d
4. e 9. a 14. c 19. c
5. a 10. c 15. a 20. a

Book Three: Expenditures and Disbursements
Chapter 1. Concept of Funds
1. The following are the general classification of funds except:

 a. Trust Fund
 b. Mutual Fund
 c. Special Fund
 d. General Fund
2. It is defined as a sum of money or other resources set aside for the purpose of carrying out specific
activities or attaining certain objectives in accordance with special regulations, restrictions or
limitations, and constitutes an independent fiscal and accounting entity.
 a. Government Fund
 b. Special Funds
 c. Local Funds
 d. Fund
 e. Trust Fund
3. It consists of monies and resources of the local government which are available for the payment of
expenditures, obligations or purposes not specifically declared by law as accruing and chargeable to, or
payable from, any other fund (Sec. 308, LGC)
 a. Government Fund
 c. Local Funds
 d. Fund
 e. Trust Fund
4. The General Fund maintains Special Accounts for the following except:
 a. Development projects funded from the share of the local government unit concerned in the
internal revenue allotment.
 b. Public utilities and other economic enterprises.
 c. Operation and maintenance of public schools.
 d. Other special accounts which may be created by law or ordinance.
 e. Loans, interests, bond issues, and other contributions for specific purposes.
5. It shall consist of private and public monies which have officially come into the possession of the local
government or of a local government official as trustee, agent or administrator, or which have been
received as guaranty for the fulfillment of some obligation.
 a. Trust Funds
 c. Real property tax proceeds
 d. Local Funds
 e. General Funds
6. The Local School Board determines and approves the allocation of proceeds from the applicable tax
on real property for the following purposes except:
 a. Educational research
 b. Construction of a school playground
 c. Operation and maintenance of public schools
 d. Purchase of books and periodicals
 e. Construction and repair of school buildings, facilities and equipment
7. The following are some of the fundamental principles governing the utilization of Local Funds except:
 a. Disbursements or disposition of government funds or property shall invariably bear the
approval of the proper officials.
 b. Disbursements or disposition of government funds or property shall invariably bear the
approval of the proper officials.
 c. Fiscal responsibility shall be shared by all those exercising authority over the financial affairs,
transactions, and operations of the local government units.
 d. Claims against government funds shall be supported with complete documentation.
 e. Trust Funds in the local treasury shall be paid out in fulfillment of the purpose for which the
trust was created or the funds received and other allocations as may be determined by the local
government as necessary.
Chapter 2. Concept of Appropriation, Allotment, Obligation and Expenditure
8. It refers to an authorization made by ordinance, directing the payment of goods and services from
local government funds under specified conditions or for specific purposes.
 a. Savings
 b. Government resolution
 c. Budget
 d. Appropriation
 e. General Fund
9. The following are the general classifications of appropriations except:

 a. Supplemental Appropriation
 b. Treasury Appropriation
 c. Annual Appropriation
 d. Continuing Appropriation
10. This refers to an appropriation available to support obligations for a specified purpose or project,
such as those for the construction of physical structures or for the acquisition of real property or
equipment, even when these obligations are incurred beyond the budget year.
11. This is one prepared to adjust the equilibrium of the first approved budget which has been disturbed
by current economic, political or social conditions, or to provide an additional amount to the original
appropriation which proved to be inadequate or insufficient for the particular purpose intended.
12. This is an appropriation consisting of specified amounts for salaries, wages, and sundry expenses,
etc., authorized by the sanggunian as necessary for the regular operations of the local government unit
during any given year.
13. It is based on estimated income and program of expenditures for a given year.
 a. The Local Budget
 b. Allotment
 c. Appropriation
 d. General Fund
 e. Allotment System
14. It is a system of budget control to ensure that obligations incurred will not exceed appropriations
or authorizations made by appropriation ordinance, directing the payment of goods and services from
local government funds under specified conditions or purposes.
 b. Allotment
 d. General Fund
15. It is an authorization issued by the Local Chief Executive to a department/office of the local
government unit, which allows it to incur obligations for specified amounts within its appropriations.
 b. Allotment
 d. General Fund
16. This is the yearly overall financial plan of the local government unit equivalent to its approved
appropriation disaggregated into components or categories.
 a. Physical Performance Targets
 b. Local Budget Matrix
 c. Obligation
 d. Cash Program
 e. Allotment
17. This reflects the targeted units of work under each program/activity/project (P/A/P) for each
department/office based on the historical data of peaks and slumps of activities/tasks and the peculiar
requirements of certain P/A/Ps.
 c. Obligation
 d. Cash Program
 e. Allotment
18. This must be able to facilitate the management of cash such that it is available when it is needed for
payment of obligations and at the same time optimizes its utilization.
 c. Obligation
 d. Cash Program
 e. Allotment
19. This refers to the amount committed to be paid by the local government unit for any lawful act
made by an accountable officer for and in behalf of the local government unit concerned.
 c. Obligation
 d. Cash Program
 e. Allotment
20. The Local Budget Matrix classifies budgetary items under the following except:
 a. Unprogrammed Appropriation
 b. Revenue Collection
 c. Not-Needing Clearance
 d. Reserve
 e. Later Release
ANSWERS
1. b 6. b 11. a 16. b
2. d 7. e 12. c 17. a
3. c 8. d 13. a 18. d
4. d 9. b 14. e 19. c
5. a 10. d 15. b 20. b

Chapter 2. Concept of Appropriation, Allotment, Obligation and Expenditure
1. The following provides for the steps in the obligation process except:
 a. The sanggunian authorizes the preparation of an appropriation consisting of specified amounts
for an obligation in accordance with the Annual Budget.
 b. The Head of the requesting office in the local government unit shall prepare the Obligation
Request and the Disbursement Voucher.
 c. The Local Budget Officer shall certify as to the existence of available appropriation that has
been legally made for the purpose and shall maintain the appropriate Registries of Appropriation,
Allotments and Obligations.
 d. The Local Accountant shall certify the obligation of allotment and completeness of supporting
documents.
2. This includes all charges against the fund of the local government unit for current operating
expenditures, capital outlays and provisions for retirement of long term obligations.
 a. Current Operating Expenditures
 b. Unnecessary Expenditures
 c. Irregular Expenditures
 d. Government Expenditures
 e. Capital Outlays
3. This refers to appropriations for the purchase of goods and services for current consumption or for
benefits expected to terminate within the fiscal year.
4. This refers to appropriations for the purchase of goods and services, the benefits of which extend
beyond the fiscal year and which add to the assets of local government unit concerned.
5. This signifies that the expenditure incurred does not adhere to established rules, regulations,
procedural guidelines, policies, principles or practices that have gained recognition in law.
 a. Unnecessary Expenditures
 b. Extravagant Expenditures
 c. Excessive Expenditures
 d. Irregular Expenditures
 e. Unconscionable Expenditures
6. This pertains to expenditures which could not pass the test of prudence or the obligation of a good
father of a family, thereby not responsive to the exigencies of the service.
7. It signifies expenses without knowledge or sense of what is right, reasonable and just and not guided
or restrained by conscience.
8. This signifies unreasonable expense or expenses incurred at an immoderate quantity or exorbitant

price.
9. This signifies those incurred without restraint, judiciousness and economy. These expenditures
exceed the bounds of propriety and are immoderate, prodigal, lavish, luxurious, wasteful, grossly
excessive, and injudicious.
10. The following are considered irregular expenditures except:

 a. Office equipment and property without the proper identification or inventory markings.
 b. Reimbursement of expenses incurred by persons other than authorized representatives of the
LGU for attending conferences, meetings and other official functions.
 c. Payment for emergency purchase, where there is no emergency.
 d. Payments made on the basis of split requisitions, purchase orders, vouchers or checks even
with approval by proper authority of the LGU.
 e. Bringing home government motor vehicles after office hours by officials to whom these are
assigned.
11. The following expenditures are considered unnecessary except:

 a. Grant of overtime pay for work that is not urgent in nature as to require completion within a
specified time or that can be undertaken during regular office hours.
 b. Expenses for advertisement of anniversaries, etc., in newspapers, television or radio merely for
publicity or propaganda purposes.
 c. Use of air conditioners when not needed, or even during the absence of the official in whose
room the air conditioner is installed.
 d. Use of table lamps while working in the office where the room is adequately illuminated from
the ceiling lights.
12. Excessive Expenditures signify unreasonable expense or expenses incurred at an immoderate
quantity or exorbitant price. The price is excessive if it is more than what percentage of allowable price
variance between than the price for the item bought and the price for the same item per canvass of the
auditor.
 a. 33
 b. 10
 c. 20
 d. 15
 e. 50
13. To determine if the price is excessive, the following factors may be considered except:
 a. Supply and Demand Forces in the Market
 b. Government Price Quotations
 c. Special Discount for Bulk Orders
 d. Warranty of Products or Special Features
 e. Brand of Products
14. The following expenditures are considered excessive except:

 a. Payment for maintenance of government vehicles and replacement of parts beyond their life
cycle.
 b. Overpricing of purchases characterized by grossly exaggerated or inflated quotations, in excess
of the current and prevailing market price by a 10% variance from the purchased item.
 c. Payment for repair of government equipment at a cost exceeding 30% of the current market
price of the same or similar equipment.
 d. Expenditures for supplies and materials in quantities beyond that required and needed by the
LGU for a determinable period, resulting in overstocking.
15. The following expenditures are considered extravagant except:

 a. Purchase of luxurious and expensive office furnishings for office buildings.
 b. Purchase of wines, liquors, cigars and cigarettes.
 c. Installation of highly sophisticated outdoor signs, billboards and neon signs advertising the
office.
 d. Purchase of expensive cars for the use of the Justices of the Supreme Court and the Heads of
Constitutional Commissions.
ANSWERS
1. a 6. a 11. e
2. d 7. e 12. b
3. a 8. c 13. c
4. e 9. b 14. a
5. d 10. d 15. d

Chapter 3. Disbursements of Local Funds
1. It constitutes all payments made during a given period either in currency, by check, through bank and
electronic transfers, telegraphic transfers, letters of credit, credit/debit cards and other non-
conventional modes of payment.
 a. Local Funds
 b. Appropriations
 c. Disbursements
 d. Savings
2. Disbursements of public funds shall be guided by the following prohibitions except:

 a. Advance Payments
 b. Expenditures for Religious or Private Purposes
 c. Expenses for Reception and Entertainment
 d. Cash Overdrafts in the Treasury
3. Disbursements from the General Fund and Special Education Fund shall require the following except:
 a. Certification as to existence of appropriation that has been legally made for the purpose by the
Local Budget Officer.
 b. Certification as to necessity, legality, as well as to the validity, propriety and legality of support
documents by the head of the requesting department or office.
 c. Certification in the Disbursement Voucher by the Local Accountant and the Local Treasurer.
 d. Approval by the Local Chief Executive.
4. Disbursement from the Trust Fund shall require the following except:
 a. Certification by the Local Budget Officer
 b. Certification by the Local Treasurer
 c. Certification by the Local Accountant
 d. Approval by the Local Chief Executive
 e. Necessary documents are attached to the disbursement vouchers/payrolls.
5. It is used for the payment of salaries and other emoluments of government employees.
 a. Human Resource Budget
 b. General Payroll
 c. Daily Wage Payroll
 d. Local Fund
 e. Payroll
6. These are those granted to Cashiers, Disbursing Officers, Paymasters and/or Property/Supply Officers
separately.
 a. Commutable Allowances
 b. Honoraria to officials and employees
 c. Special Cash Advances
 d. Regular Cash Advances
 e. Salaries and Wages
7. These are those granted on the explicit authority of the Local Chief Executive only to duly designated
disbursing officers or employees for other legally authorized purposes.
 a. Commutable Allowances
 b. Honoraria to officials and employees
 c. Special Cash Advances
 d. Regular Cash Advances
 e. Salaries and Wages
8. The cash advance for petty operating expenses shall be sufficient for the recurring expenses of the
agency for:
 a. 15 days
 b. 1 month
 c. 1 quarter
 d. 6 months
 e. 1 year
9. The Accountable Officer may request replenishment of the case advance when the disbursements
reach at least:
 a. 10%
 b. 25%
 c. 50%
 d. 75%
10. The cash advance shall be supported by which document(s):

 a. Written authority by the Local Chief Executive
 b. Approved application for bond
 c. Estimate of expenses
11. The amount of the cash advance shall be limited to the requirements for 2 months. The Accountable
Officer shall submit a Report of Disbursements:
 a. Within 3 days after the end of each month
 b. Within 5 days after the end of each month
 c. Within 10 days after the end of each month
 d. Within 15 days after the end of each month
 e. Within 30 days after the end of each month
12. Travels and payment of travel expenses of officials and employees of National Government Agencies
will require approval of the Department Secretary or his equivalent if it will last more than:
 a. 10 days
 b. 15 days
 c. 30 days
 d. 45 days
 e. 60 days
13. The travel expenses of government personnel regardless of rank and destination shall be in the
amount of:
 a. Php 500.00
 b. Php 800.00
 c. Php 1,500.00
 d. Php 5,000.00
 e. Any amount as requested
14. The cash advance voucher for official foreign travel shall be supported by which document(s):
 a. Travel Order
 b. Itinerary of Travel
 c. Authority from the President to claim Representation Expenses, when applicable.
 d. Certification of the local official or employee concerned duly verified by the Local Accountant
to the effect that no clothing allowance had been received during the next preceding 24 months,
if clothing allowance is being claimed.
 e. Official receipts of initial expenses made in preparation for such travel.
15. Cash advance for salaries and wages shall be liquidated within the prescribed period of:
 a. 3 days after each 15 day/end of the month pay period
 b. 5 days after each 15 day/end of the month pay period
 c. 15 days after each 15 day/end of the month pay period
 d. 30 days after each 15 day/end of the month pay period
ANSWERS
1. c 6. d 11. b
2. e 7. c 12. c
3. e 8. b 13. b
4. a 9. d 14. e
5. e 10. e 15. b

Chapter 3. Disbursements of Local Funds
1. Cash advance for Petty Operating Expenses and Field Operating Expenses shall be liquidated within
the prescribed period of:
 a. 3 days after the end of the year
 b. 5 days after the end of the year
 c. 15 days after the end of the year
 d. 20 days after the end of the year
 e. 30 days after the end of the year
2. A cash advance has to be returned or refunded immediately to the Collecting Officer if it has not been
used for period of:
 a. 2 months
 b. 3 months
 c. 6 months
 d. 1 year
 e. 2 years
3. Liquidation of the cash advance for Petty Operating Expenses shall be supported by the following
reports and documents except:
 a. Report of Disbursements
 b. Approved Requisition and Issue Voucher with the Certificate of Emergency Purchase, if
necessary
 c. Receipts, Sales Invoices
 d. Certificate of Acceptance/Inspection
 e. Canvass of at least 3 suppliers
4. Examples of the use of intelligence and/or confidential expenses are as follows except:
 a. Purchase of information relevant to security and peace and order.
 b. Payment of allowances for special security personnel.
 c. Payment of rewards.
 d. Rentals and other incidental expenses related to the maintenance of safe houses.
 e. Purchase of supplies, materials and equipment necessary for intelligence and confidential
operations and/or projects.
5. The annual appropriations for discretionary purposes of the local chief executive shall not exceed at
what percentage of the actual receipts derived from basic real property tax in the next preceding
calendar year.
 a. 2
 b. 3
 c. 5
 d. 10
Chapter 4. Barangay Appropriations, Commitments and Disbursements
6. The Barangay Kagawad who is designated as Chairman of the Committee on Appropriation shall be
responsible in monitoring the approved appropriations and the charges against the following funds
except:
 a. 20% Development Fund
 b. Calamity Fund
 c. Sangguniang Kabataan Fund
 d. The Local Budget
 e. Gender and Development Fund
7. The following are classified as Personal Services except:

 a. Salaries and Wages (Regular)
 b. Salaries and Wages (Contractual)
 c. Special allowances
 d. Honoraria
 e. Cash Gift
8. The frequency of which the Barangay Treasurer shall record all the checks issued in the Summary of
Checks Issued.
 a. Daily
 b. Weekly
 c. At the end of the month
 d. On or before the 5th day of the following month
9. The frequency of which the Barangay Record Keeper shall record check disbursement based on the
certified Summary of Checks Issued in the Check Disbursement Register.
 a. Daily
 b. Weekly
10. The schedule of which the Barangay Record Keeper shall submit the Check Disbursement Register
together with the Summary of Check Issued to the City/Municipal Accountant for recording of the
checks issued in the books.
 a. Daily
 b. Weekly
11. The schedule for which the Check Disbursement Register shall be totaled, balanced, ruled
recapitulated and certified.
 a. Daily
 b. Weekly
12. The barangay Disbursement Voucher in 4 copies shall be distributed to the following except:
 a. Local Auditor concerned
 b. City/Municipal Accountant
 c. Attached to the city/municipal Disbursement Voucher
 d. Barangay Treasurer
 e. Punong Barangay
13. The cash advance for payroll charged against Barangay Funds maintained by depository bank shall
be liquidated.
 a. Within 3 days after the end of the pay period
 b. Within 5 days after the end of the pay period
 c. Upon demand by the Barangay Treasurer
 d. Upon full release of the amount to intended recipients
 e. Within 15 days after the end of the pay period
Chapter 5. Sangguniang Kabataan Budget
14. At what percentage of the General Fund of the barangay shall the budget for the Sangguniang
Kabataan be?
 a. 10%
 b. 3%
 c. 20%
 d. 5%
15. Sanggunian Kabataan budgeting is the same as that of the other LGUs. The major phases are the
following except:
 a. Budget Preparation
 b. Budget Authorization
 c. Budget Review and Execution
 d. Budget Accountability and Reporting
ANSWERS
1. d 6. d 11. c
2. a 7. c 12. e
3. e 8. a 13. b
4. b 9. b 14. a
5. a 10. d 15. e

Book Four: Fund Management Practices, Accountability, Cash Examination, Shortages and Settlement of
Accounts of Local Treasurers, and Liabilities of Local Treasurers in the Administration of Local Taxes, Fees,
and Charges
Philippine Board Reviewer | Video #11 | Book 4 | Chapter 1 | 20 Questions
Chapter 1. Fund Management Practices
1. It is the exercise of economic, political and administrative authority to manage a country’s/local

government affairs at all levels. It comprises mechanisms, processes, and institutions through which
citizens and groups articulate their interests, exercise their legal rights, meet their obligations, and
mediate their differences.
 a. Cash Programming Tools
 b. Cash Flow from Operating Activities
 c. Cash Flow Forecast
 d. Good Governance
 e. Cash Management and Programming
2. It allows Local Treasurers to manage the cash such that it is available when it is needed for payment
of obligations and at the same time optimize its utilization, ensure that released allotments are
adequately covered by available cash and/or future collections, and provide information to facilitate
the control of expenditures.
3. It aids the Local Treasurer in cash management and programming such as Cash Flow Forecast and the
Cash Flow Analysis.
4. It is a monthly schedule of anticipated receipts and disbursements of the local government unit for
the fiscal year showing the beginning and ending cash balances of each month.
5. It pertains to the receipts from, and disbursements of cash out of, the regular and primary operations
of the local government unit such as from collection of taxes, share from IRA, payment to creditors and
employees, etc.
6. It includes receipt of cash from bank loans, proceeds from the floatation of bonds and receipts from
other types of borrowings.
 a. Cash Flow from Investing Activities
 b. Cash Disbursement Forecast
 c. Cash Flow from Financing Activities
 d. Cash Flow Analysis
 e. Cash Receipts Forecast
7. It pertains to receipts from the sale, acquisition or purchase of long term investments such as real
estate, machinery and other Plant, Property and Equipment.
8. It is a schedule of all income collections and other receipts to be prepared by all collecting units. All
receipts shall also be classified into operating, financing and investing activities.
9. It is a schedule of all expenditures to be prepared by the local treasury personnel in charge of

expenditures and disbursements.
10. It is a cash flow monitoring tool used to guide the Local Chief Executive, the Local Treasurer, and the
Local Budget Officer to control the releases of allotment depending on the collection/expenditure
performance during the period.
11. It is the ratio of the Present Value of Annual Cash Returns discounted at the lowest acceptable rate
to the Present Value of the Initial Investment Cost.
 a. Present Value Index
 b. Time value of money
 c. Net Present Value
 d. Discounted Rate of Return
 e. Annual Cash Inflow
12. It is the amount of cash a project is expected to generate annually, and equal to the cash inflows
from projected sales and or service fees minus the estimated cash outflows for operational expenses.
13. It refers to the expected increase in its peso value considering the prevailing interest rates, the
passage of time, and opportunity cost of capital and similar factors.
14. It is the rate at which an investment is earning, and equates the present value of cash returns with
the present value of the initial investment.
15. It represents the excess of the present value of annual cash returns (discounted at the lowest
acceptable rate) over the present value of the initial capital investment.
16. It refers to the estimated useful life of an asset or that length of period during which economic
benefits can be derived therefrom.
 a. Cost of money
 b. Economic life
 c. Scrap value
 d. Payback Period
17. It refers to the length of time or number of years it will take to recover the initial outlay for a project.
 a. Cost of money
 b. Economic life
 c. Scrap value
 d. Payback Period
18. The LGU should consider long-term financing for the acquisition, maintenance and replacement or
expansion of physical assets (including land) only if the economic enterprise would be expected to
generate revenue in the near term or if these assets have a useful life of at least:
 a. 1 year
 b. 3 years
 c. 5 years
 d. 10 years
19. Cash Programming Tools such as Cash Flow Forecast and Cash Flow Analysis can provide the
following information except:
 a. Effectiveness of the Local Chief Executive
 b. Excess in the collection of taxes and other revenues
 c. Under-collection of taxes and other revenues
 d. Under-disbursement or excess in the disbursement
 e. Large amount of idle cash that may be invested
20. When funding competing capital projects, the viability and approvability of the project and its
funding from long-term debt should be assessed based on the following factors except:
 a. Approval from the Local Chief Executive
 b. Nature of the project and uses of funds
 c. Cost-benefit analysis of the project
 d. Expenditure plan and sources of debt financing
ANSWERS
1. d 6. c 11. a 16. b
2. e 7. a 12. e 17. d
3. a 8. e 13. b 18. c
4. c 9. b 14. d 19. a
5. b 10. d 15. c 20. a

and Charges
Philippine Board Reviewer | Book 4 | Chapter 2 | 15 Questions - Definition of Terms
Chapter 2. Accountability, Responsibility, and Liability of Local Treasurers for Funds and Property
1. It refers to the answerability of every public officer whose duties permit or require the possession or
custody of government funds or property and who shall be accountable therefor and for the
safekeeping thereof in conformity with law.
 a. Liability
 b. Public Service
 c. Accountability
 d. Honesty
 e. Responsibility
2. The obligation to prudently exercise assigned or imputed authority attaching to the assigned or
imputed role of an individual or group participating in organizational activities or decision.
 a. Liability
 b. Public Service
 c. Accountability
 d. Honesty
 e. Responsibility
3. The officer of any government agency whose duties permit or require the possession or custody of
government funds or property, (such as the Local Treasurer, Collecting Officer, Disbursing Officer,
Cashier, Paymaster, and Property Officer) who is required by law to render account to the Commission
on Audit.
 a. Persons Responsible
 b. Accountable Officer
 d. Persons Liable
4. The persons determined by the auditor to be answerable for an audit disallowance or charge arising
from the post-audit of transaction or examination of the cash and accounts of an accountable officer.
5. The persons determined by the auditor to be answerable for compliance with the audit requirements
as called for in the notice of suspension.
6. A written notification by the Auditor to the agency head and the accountable officer concerned of
the total suspensions, disallowances and charges found in audit, as well as the settlements thereof.
 a. Disallowance
 b. Settlement
 c. Certificate of Settlement and Balances
 d. Termination
 e. Suspension
7. The process of determining the status or balance of the accountability of an accountable officer.
 a. Disallowance
 b. Settlement
 d. Termination
 e. Suspension
8. The deferment of action to allow or disallow in audit a transaction pending compliance with certain
requirements.
 a. Disallowance
 b. Settlement
 d. Termination
 e. Suspension
9. The disapproval in audit of a transaction, either in whole or in part.

 a. Disallowance
 b. Settlement
 d. Termination
 e. Suspension
10. These are items of property, plant and equipment and are referred to as such because of their
permanent nature and because they are not subject to rapid turnover.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
 e. Current Assets
11. The following are examples of fixed assets except:

 a. Equipment
 b. Furniture and fixtures
 c. Land
 d. Office Supplies
 e. Building
12. A personal obligation arising from an audit disallowance or charge in the course of post audit of a
transaction or examination of the cash and accounts of an accountable officer.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
13. Cash and other assets that are not earmarked for specific purposes other than the payment of a
current liability or a readily marketable investment.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
14. A holding that can be converted into cash within a short period of time.
 a. Quick Assets
 b. Liability
 c. Fixed Assets
 d. Equity
15. It is the process of elevating to the next higher authority a decision, order, or ruling.
 a. Settlement
 b. Appeal
 c. Reconsideration
 d. Complaint
ANSWERS
1. c 6. c 11. d
2. e 7. b 12. b
3. b 8. e 13. e
4. d 9. a 14. a
5. a 10. c 15. b

and Charges
Philippine Board Reviewer | Book 4 | Chapter 2B | 15 Questions
1. When a Local Treasurer or officer accountable for government funds or property absconds with them,
dies, or becomes incapacitated in the performance of his duties, in the case of funds and property of
the province, city and municipality, the designation of a custodian to take charge of the funds or
property until a successor shall have been appointed and qualified shall be made by:
 a. President of the Philippines
 b. Local Chief Executive
 c. Governor
 d. Secretary of Finance
 e. COA Director
2. When a loss of government funds or property occurs while they are in transit or the loss is caused by
fire, theft, or other casualty or force majeure, the officer accountable therefor or having custody thereof
shall immediately notify the Commission on Audit or auditor concerned and, unless the auditor allows
a longer period, shall present his application for relief with the available supporting evidence within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
3. The sealing of safe and other cash receptacles shall be resorted to by the examining officer only in
the following exceptional cases except:
 a. The absence or non-appearance of the accountable officer for the count.
 b. When the accountable officer refuses to submit himself to cash examination.
 c. An interruption or the non-completion of the count during the day or the necessity of
controlling cash, cash items and records.
 d. In cases of deceased, incapacitated or absconding accountable officer pending the cash count
to be conducted by a committee created to make an inventory of his cash, cash items and other
accountabilities.
 e. When prima facie evidence of missing funds has been established.
4. The following shall be disallowed as credit to accountable officer’s accountability except:

 a. Post-dated Checks and Treasury Warrants
 b. Chits, IOUs, Vales or other forms of Promissory Notes
 c. Cash and cash items
 d. Demonetized Bills and Coins and Unacceptable Mutilated Bills
 e. Private Checks not made payable to the agency or the official title or designation of the agency
head
5. After the cash examination is completed, the auditor shall prepare and submit a final narrative report
which shall contain:
 a. Introduction
 b. Findings
 c. Recommendations
6. A person who, by direct provision of the law, popular election or appointment by competent
authority, shall take part in the performance of public functions in the government, or shall perform in
said government or in any of its branches public duties as an employee, agent, or subordinate official,
of any rank or class.
 a. Public officer
 b. Accountable officer
 c. Auditor
 d. Local Treasurer
 e. Examining officer
7. Auditors of all government agencies shall certify the balances arising in the accounts settled by them
to the Commission on Audit and to the proper Local Treasurer, Collecting Officer, or Disbursing Officer,
in such form as the Commission on Audit may prescribe, within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
8. Unless extended in writing and for good cause, a charge of suspension by the accountable officer
shall become a disallowance if after receipt of the certificate or notice it is not satisfactorily explained
within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 90 days
9. It summarizes all suspensions, disallowances and charges found in audit, including the settlements
thereof as of a given date.
 a. Notice of Suspensions
 b. Certificate of Settlement and Balances
 c. Notice of Disallowance
 d. Notice of Charge
 e. Credit Notice
10. It shall be issued as often as suspensions are made by the auditor for the purpose of notifying the
agency head and the accountable officer concerned on the suspended transactions.
 d. Credit Notice
 e. Audit Observation Memorandum
11. It shall be used and issued as often as disallowance are made by the auditor in order to notify the
agency head, the accountable officers concerned, and the other persons liable for the disallowed
transaction.
12. It is issued by the auditor to the accountable officer within 30 days from receipt of the report of
disbursements for liquidation of cash advances, to inform the latter of the amount allowed in audit and
any suspensions and/or disallowance made.
13. It shall be used and issued as often as charges are made by the auditor to notify the agency head,
accountable officer concerned and other persons liable for the deficiencies noted in the audit of
revenues and receipts.
14. The Certificate of Settlement and Balances shall be issued for every accountable officer and for each
fund within:
 a. 10 days after the end of each quarter
 b. 30 days after the end of each quarter
 c. 60 days after the end of each quarter
 d. 90 days after the end of each quarter
15. It shall be issued to the agency head and/or other officials concerned relative to the
findings/observations/other deficiencies noted in the audit of accounts/transactions and requiring
comment/reply thereto within the period specified therein.
 a. Notice of Disallowance
 b. Audit Observation Memorandum
 c. Credit Notice
 d. Auditor’s Order
ANSWERS
1. d 6. a 11. c
2. a 7. c 12. e
3. e 8. d 13. d
4. c 9. b 14. a
5. d 10. a 15. b

and Charges
Philippine Board Reviewer | Book 4 | Chapters 2-3
1. It shall be used by the auditor to enforce the settlement of audit disallowances and charges,
whenever the persons liable therefor refuse or fail to voluntarily settle the disallowances and charges
after the decision has become final and executor.
 a. Notice of Disallowance
 b. Audit Observation Memorandum
 c. Credit Notice
 d. Auditor’s Order
2. All transactions which are irregular, unnecessary, excessive and extravagant and those which are
illegal and unconscionable. These are:
 a. Grounds for Disallowance
 b. Grounds for Charges
 c. Grounds for Suspension
 d. Grounds for Termination
3. Transactions or accounts which could otherwise have been settled for some documentary or technical
requirements and those the legality/propriety/regularity of which the auditor doubts, but which may
possibly be allowed in audit after satisfactory explanation or valid justification by the parties concerned.
These are:
4. When there is error in the assessment which resulted in under collection, and error in the
computation of the amount due the payor which may either be over collection or under collection.
These are:
5. The liability of public officers and other persons for audit disallowances shall be determined on the
basis of the following except:
 a. Nature of the Disallowance
 b. Duties, responsibilities or obligations of the officers/persons concerned
 c. Extent of their participation or involvement in the disallowed transaction
 d. Amount of losses or damages suffered by the government thereby
 e. Financial capacity of the accountable officer
6. Unless a request for reconsideration is filed or an appeal is taken, the Report, Certificate of
Settlement and Balances, Order or Decision of the auditor shall become final after notice thereof to the
parties concerned upon the expiration of:
 a. 1 month
 b. 3 months
 c. 6 months
 d. 12 months
Chapter 3. Administrative, Civil, and Criminal Liabilities of Local Treasurers in the Administration
7. Under R. A. No. 7160, failure to post and publish the itemized monthly collections and disbursements
of the LGU within the prescribed period shall be punished by:
 a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
 b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
 c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum
period or both
 d. Sufficient ground for administrative disciplinary action against the officials and employees
involved
 e. Automatic dismissal from the service after due notice and hearing
8. Under the Revised Penal Code, frauds against the public treasury and similar offenses by a public
officer, such as (1) Demanding, directly or indirectly, the payment of sums different from or larger than
those authorized by law, (2) Failing voluntarily to issue a receipt, as provided by law, for any sum of
money collected by him officially, (3) Collecting or receiving, directly or indirectly, by way of payment
or otherwise, things or objects of nature different from that provided by law, shall be punished by:
period or both
involved
9. Under R. A. No. 7160 and without prejudice to criminal prosecution under the Revised Penal Code
and other applicable laws, any Local Treasurer who fails to issue or execute the warrant of distraint or
levy after the expiration of the time prescribed, or who is found guilty of abusing the exercise thereof
by competent authority shall be punished by:
period or both
involved
10. Under R. A. No. 7160, the enforcement of any tax ordinance or revenue measure after due notice of
the disapproval or suspension thereof shall be:
period or both
involved
11. Under R. A. No. 7160, failure to collect tax due on real property by any officer or to dispose of
delinquent real property at public auction by the Local Treasurer shall be punished by:
period or both
involved
12. Any public officer who is guilty of the misappropriation or malversation of funds or property shall
suffer the penalty of reclusion temporal in its minimum and medium periods, if the amount involved is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00
suffer the penalty of prision correccional in its minimum and medium periods, if the amount involved
is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00

suffer the penalty of prision mayor in its maximum period to reclusion temporal in its minimum period,
if the amount involved is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00
suffer the penalty of prision mayor in its maximum and medium periods, if the amount involved is:
 a. Php 200.00 – Php 2,000.00
 b. Php 2,000.00 – Php 6,000.00
 c. Php 6,000.00 – Php 12,000.00
 d. Php 12,000.00 – Php 22,000.00
ANSWERS
1. d 6. c 11. b
2. a 7. a 12. d
3. c 8. c 13. a
4. b 9. e 14. c
5. e 10. d 15. b

#15 BCLTE - LTOM Book 5 Chapter 1A
Book Five: Detailed Procedures on Real Property Tax Business Tax Fees and Charges and Other Resource
Mobilization
Philippine Board Reviewer | Book 5 | Chapter 1 | 20 Questions - Definition of Terms
Chapter 1. Real Property Taxes
1. It refers to the actual cost of the machinery to its present owner, plus the cost of transportation,
handling, and installation at the present site. This is applicable for newly acquired machinery not yet
depreciated and appraised within the year of its purchase.
 a. Acquisition Cost
 b. Actual Use
 c. Ad Valorem Tax
 d. Market Value
 e. Amortization
2. It is a levy on real property determined on the basis of a fixed proportion of the value of the real
property.
 b. Actual Use
 d. Market Value
 e. Amortization
3. It refers to the principal purpose for which the property is principally or predominantly utilized by
the person in possession thereof.
 b. Actual Use
 d. Market Value
 e. Amortization
4. It is a valuable addition made to a property or an amelioration in its condition, amounting to more

than a mere repair or replacement of parts involving capital expenditures and labor, which is intended
to enhance its value, beauty or utility or to adapt it for new or further purposes.
 a. Appraisal
 b. Assessment
 c. Assessment Level
 d. Re-assessment
 e. Improvement
5. It is the act or process of determining the value of property as of a specific date for a specific purpose.
 a. Appraisal
 b. Assessment
 e. Improvement
6. It is the assigning of new assessed values to property, particularly real estate, as the result of general,
partial, or individual reappraisal of the property.
 a. Appraisal
 b. Assessment
 e. Improvement
7. It is the act or process of determining the value of a property, or proportion thereof subject to tax,
including the discovery, listing, classification, and appraisal of properties.
 a. Appraisal
 b. Assessment
 e. Improvement
8. It is the percentage applied to the fair market value to determine the taxable value of the property.
 a. Appraisal
 b. Assessment
 e. Improvement
9. It is the price at which a property may be sold by a seller who is not compelled to sell and bought by
a buyer who is not compelled to buy.
 a. Assessed Value
 b. Depreciated Value
 c. Fair Market Value
 d. Remaining Value
 e. Replacement or Reproduction Cost
10. It is the cost that would be incurred on the basis of current prices, in acquiring an equally desirable
substitute property, or the cost of reproducing a new replica of the property on the basis of current
prices with the same or closely similar material.
11. It is the value remaining after deducting depreciation from the acquisition cost.
12. It is the value corresponding to the remaining useful life of the machinery.
13. It is the fair market value of the real property multiplied by the assessment level. It is synonymous
to taxable value.
14. It embraces machines, equipment, mechanical contrivances, instruments, appliances, or apparatus
which may or may not be attached, permanently or temporarily, to the real property.
 a. Useful Life
 b. Remaining Economic Life
 c. Assets
 d. Economic Life
 e. Machinery
15. It is the period of time expressed in years from the date of appraisal to the date when the machinery
becomes valueless.
 a. Useful Life
 c. Assets
 e. Machinery
16. It is the estimated period over which it is anticipated that a piece of machinery or equipment may
be profitably utilized.
 a. Useful Life
 c. Assets
 e. Machinery
17. It is land devoted principally to industrial activity as capital investment and is not classified as
agricultural, commercial, timber, mineral, or residential land.
 a. Commercial Land
 b. Idle Lands
 c. Industrial Land
 d. Mineral Lands
 e. Residential Land
18. It is land devoted principally for the object of profit and is not classified as agricultural, industrial,
mineral, timber, or residential land.
 b. Idle Lands
19. It is land principally devoted to habitation.

 b. Idle Lands
20. These are lands in which minerals, metallic or non metallic, exist in sufficient quantity or grade to
justify the necessary expenditures to extract and utilized such materials.
 b. Idle Lands
ANSWERS
1. a 6. d 11. b 16. d
2. c 7. b 12. d 17. c
3. b 8. c 13. a 18. a
4. e 9. c 14. e 19. e
5. a 10. e 15. b 20. d

Mobilization
1. The appraisal, assessment, levy and collection of real property tax shall be guided by the following
fundamental principles except:
 a. Real property shall be appraised at its current and fair market value.
 b. Real property shall be classified for assessment purposes on the basis of its potential use.
 c. Real property shall be assessed on the basis of a uniform classification within each local
government unit.
 d. The appraisal, assessment, levy and collection of real property tax shall not be let to any private
person.
 e. The appraisal and assessment of real property shall be equitable.
2. A province or city or municipality within Metropolitan Manila Area shall fix a uniform rate of basic
real property tax applicable to their respective jurisdiction. For provinces, at what maximum rate of the
Assessed Value should the levy be?
 a. 1%
 b. 2%
 c. 3%
 d. 5%
 e. 10%
3. A province or city or municipality within Metropolitan Manila Area shall fix a uniform rate of basic
real property tax applicable to their respective jurisdiction. For cities, or municipalities of Metropolitan
Manila Area, at what maximum rate of the Assessed Value should the levy be?
 a. 1%
 b. 2%
 c. 3%
 d. 5%
 e. 10%
4. For additional Ad Valorem Tax on idle lands, at what maximum rate of the assessed value of the
property may a province or city, or a municipality within the Metropolitan Manila Area levy an annual
tax in addition to the basic real property tax?
 a. 1%
 b. 2%
 c. 3%
 d. 5%
 e. 10%
5. For additional levy on real property tax for the Special Education Fund outside of Metropolitan Manila
Area, who has the authority to impose the additional SEF tax?
 a. Local Treasurer
 b. Local Chief Executive
 c. Barangay Chairman
 d. Municipality
 e. Province
6. A province, city or municipality may impose a special levy on the lands comprised within its territorial
jurisdiction specially benefited by public works projects or improvements funded by the LGU concerned.
The tax ordinance imposing the levy shall meet the following requirements except:
 a. Describe with reasonable accuracy the nature, extent, and location of the public works projects
or improvements to be undertaken.
 b. State the estimated cost of the public works projects or improvements.
 c. Identify the lands and owners to be affected or the persons having legal interest therein.
 d. Specify the meters and bounds by monuments and lines.
 e. Specify the number of annual installments for the payment of the special levy.
7. The following are exempt from real property tax except:

 a. Autonomous regions
 b. Government-Owned or Controlled Corporations
 c. Provinces and sub-provinces
 d. Cities and municipalities
 e. Barangays
8. It refers to any agency of National Government, not integrated within the department framework,
vested with special functions or jurisdiction by law, endowed with some if not all corporate powers,
administering special funds, and enjoying autonomy, usually through a charter.
 a. Local Government Unit
 b. Sanggunian
 d. Instrumentality
 e. Congress
9. The real properties owned by the following government-owned or controlled corporations are not
exempt from the real property tax except:
 a. Philippine Economic Zone Authority
 b. Bauang Private Power Corporation
 c. McArthur Park and Beach Resort
 d. Land Bank of the Philippines
 e. Embassies, consulates, and other diplomatic officers
10. The real property tax for any year shall accrue and constitute a lien on the property which shall be
superior to any lien, mortgage, or encumbrance of any kind whatsoever, and shall be extinguished only
upon the payment of the delinquent tax, on:
 a. April 15
 b. January 1
 c. January 31
 d. September 30
 e. December 31
11. The Provincial, City or Municipal Assessor shall prepare and submit to the Treasurer of the LGU an
assessment roll containing a list of all persons whose real properties have been newly assessed or re-
assessed and the values of such properties, on:
 a. April 15
 b. January 1
 c. January 31
 d. September 30
 e. December 31
12. For the current year, the City or Municipal Treasurer shall, in the case of the basic real property tax
for the SEF, post the notice of the dates when the tax may be paid without interest at a conspicuous
and publicly accessible place at the city or municipal hall, on or before:
 a. April 15
 b. January 1
 c. January 31
 d. September 30
 e. December 31
13. The owner of the real property or the person having legal interest therein may pay the real property
tax and the additional tax for SEF due thereon, without interest, in 4 equal installments, to be due and
payable as follows:
 a. January 1, April 1, July 1, and October 1
 b. January 31, April 30, July 31, and October 31
 c. March 31, June 30, September 30, and December 31
 d. April 15, July 15, October 15, and December 31
14. For payment of tax under protest, the taxpayer shall file a protest to the Provincial, City Treasurer,
or Municipal Treasurer in the case of a municipality within Metropolitan Area, within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 6 months
 e. 2 years
15. The Provincial, City Treasurer, or Municipal Treasurer in the case of a municipality within
Metropolitan Manila Area shall decide the protest filed by the taxpayer when the payment was made
under protest, within:
 a. 30 days
 b. 45 days
 c. 60 days
 d. 6 months
 e. 2 years
ANSWERS
1. b 6. c 11. e
2. a 7. b 12. c
3. b 8. d 13. c
4. d 9. e 14. a
5. e 10. b 15. c

#17 BCLTE - LTOM Book 5 Chapter 1C
Mobilization
Philippine Board Reviewer | LTOM | Book 5 | Chapter 1 | 15 Questions
1. An act providing for the recognition and use of electronic commercial and non-commercial
transactions, penalties for unlawful use thereof, and other purposes.
 a. R. A. No. 7160
 b. R. A. No. 6657
 c. R. A. No. 6810
 d. R. A. No. 8792
 e. R. A. No. 7279
2. An act instituting a comprehensive agrarian reform program to promote social justice and
industrialization providing the mechanism for its implementation and for other purposes.
 a. R. A. No. 7160
 b. R. A. No. 6657
 c. R. A. No. 6810
 d. R. A. No. 8792
 e. R. A. No. 7279
3. The basic real property tax and any other tax levied under Title 2, Book II of R. A. No. 7160 shall, from
the date they become due, be collected within:
 a. 5 years
 b. 7 years
 c. 10 years
 d. 15 years
 e. 20 years
4. In case of fraud or intent to evade payment of the real property tax, an administrative or judicial
action may be instituted for the collection of the same, from the discovery of such fraud or intent to
evade payment, within:
 a. 5 years
 b. 7 years
 c. 10 years
 d. 15 years
 e. 20 years
5. The period of prescription within which to collect the real property tax levied under Title 2, Book II
of R. A. No. 7160 shall be suspended for the time during any the following scenarios except:
 a. The Local Treasurer is legally prevented from collecting the tax.
 b. The owner of the property has no financial capacity to pay the tax.
 c. The owner of the property or the person having legal interest therein requests for re-
investigation and executes a waiver in writing before the expiration of the period within which to
collect.
 d. The owner of the property or the person having legal interest therein is out of the country or
otherwise cannot be located.
6. The Warrant of Levy shall be mailed to or served upon the delinquent real property owner or person
having legal interest therein, and after receipt of the same, the levying officer shall submit a report on
the levy to the sanggunian concerned within:
 a. 3 days
 b. 5 days
 c. 10 days
 d. 15 days
 e. 30 days
7. After service of the Warrant of Levy, the Local Treasurer shall proceed to publicly advertise for sale
or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency
and expenses of sale which shall be effected by the issuance of a Notice of Sale and the posting and
publication thereof, within:
 a. 3 days
 b. 5 days
 c. 10 days
 d. 15 days
 e. 30 days
8. It is issued by the Local Treasurer concerned, together with the official receipt and tax clearance
which shall in effect extinguish the tax lien on the property if the owner of the real property or person
having legal interest therein pays the delinquent tax, the interest due thereon and the expenses of sale
before the date fixed for the sale.
 a. Certificate of Release
 b. Proof of Service
 c. Warrant of Levy
 d. Certificate of Redemption
 e. Certificate of Sale
9. It is issued by the Local Treasurer to the purchaser containing the name of the purchaser, a description
of the property sold, the amount of the delinquent tax, the interest due thereon, the expenses of sale
and brief description of the proceedings.
10. It is issued by the Local Treasurer to the owner of the delinquent real property or person having
legal interest therein invalidating the Certificate of Sale issued to the purchaser if he pays the amount
of the delinquent tax, including the interest due thereon and the expenses of the sale plus interest of
2% per month within one year from date of sale.
11. In case there is no bidder for the real property advertised for sale, the local Treasurer shall purchase
the property in behalf of the LGU concerned. The taxpayer or any of his representative may redeem the
property by paying to the Local Treasurer the full amount of the real property tax and the related
interest and cost of the sale within:
 a. 6 months
 b. 1 year
 c. 2 years
 d. 3 years
 e. 5 years
12. For real estate taken for taxes, fees or charges, the sanggunian concerned may, by ordinance duly
approved, may dispose of the real property acquired under Section 263 of R. A. No. 7160 at public
auction, upon notice of not less than:
 a. 5 days
 b. 15 days
 c. 20 days
 d. 30 days
13. The proceeds of the basic real property tax, including interest thereon, and proceeds from the use,
lease or disposition, sale or redemption of property acquired by public auction by the province shall be
distributed accordingly. At what percentage of the proceeds will accrue to the General Fund of the
province?
 a. 35%
 b. 70%
 c. 40%
 d. 50%
 e. 25%
distributed accordingly. At what percentage of the proceeds will accrue to the barangay where the
property is located?
 a. 35%
 b. 70%
 c. 40%
 d. 50%
 e. 25%
distributed accordingly. At what percentage of the proceeds will accrue to the General Fund of the
municipality where the property is located?
 a. 35%
 b. 70%
 c. 40%
 d. 50%
 e. 25%
ANSWERS Passing Score: 12 (80%)

1. d 6. c 11. b
2. b 7. e 12. c
3. a 8. a 13. a
4. c 9. e 14. e
5. b 10. d 15. c
Mobilization
Philippine Board Reviewer | LTOM | Book 5 | Chapters 1-2 | 15 Questions
lease or disposition, sale or redemption of property acquired by public auction by the city shall be
distributed accordingly. At what percentage of the proceeds will accrue to the General Fund of the city?
 a. 30%
 b. 70%
 c. 40%
 d. 50%
 e. 25%
distributed accordingly. At what percentage of the proceeds will accrue to the barangay where the
property is located or equally to all component barangays of the city?
 a. 30%
 b. 70%
 c. 40%
 d. 50%
 e. 25%
distributed accordingly. At what percentage of the proceeds shall be distributed among the component
barangays of the cities where the property is located?
 a. 30%
 b. 70%
 c. 40%
 d. 50%
 e. 25%
Chapter 2. Business and Other Local Taxes
4. These are those imposed by a local government unit on the privilege of engaging in business,
occupation and other activities within its territorial jurisdiction.
 a. Amusement Places
 b. Agricultural Product
 c. Business taxes
 d. Business
 e. Amusement
5. It includes the yield of the soil, such as corn, rice, wheat, rye, hay, coconuts, sugarcane, tobacco, root
crops, vegetables, fruits, flowers and their by-products; ordinary salt; all kinds of fish; poultry; and
livestock and animal products, whether in their original form or not.
 d. Business
 e. Amusement
6. A pleasurable diversion and entertainment. It is synonymous to relaxation, avocation, pastime, or
fun.
 d. Business
 e. Amusement
7. These include theaters, cinemas, concert halls, circuses and other places of amusement where one
seeks admission to entertain oneself by seeing or viewing the show or performance.
 d. Business
 e. Amusement
8. It means trade or commercial activity regularly engaged in as a means of livelihood or with a view to
profit.
 d. Business
 e. Amusement
9. It include non-bank financial intermediaries, lending investors, finance and investment companies,
pawnshops, money shops, insurance companies, stock markets, stock brokers and dealers in securities
and foreign exchange, as defined under applicable law, or rules and regulations thereunder.
 a. Central Bank
 b. Credit card companies
 c. Banks and other financial institutions
 d. Financial service providers
 e. Banking investments
10. It is the capital which a person employs in any undertaking, or which he contributes to the capital
of a partnership, corporation, or any other juridical entity or association in a particular taxing
jurisdiction.
 a. Corporation
 b. Capital Investment
 c. Contractor
 d. Countryside and Barangay Business Enterprise
 e. Charges
11. These refer to pecuniary liability, as rents or fees against persons or property.
 a. Corporation
 c. Contractor
 e. Charges
12. It includes persons, natural or juridical, not subject to professional tax under Section 139 of R. A.
No. 7160, whose activity consists essentially of the sale of all kinds of services for a fee, regardless of
whether or not the performance of the service calls for the exercise or use of the physical or mental
faculties of the contractor or his employees.
 a. Corporation
 c. Contractor
 e. Charges
13. It includes partnerships, no matter how created or organized, joint-stock companies, joint accounts
(cuentas en participacion), associations or insurance companies.
 a. Corporation
 c. Contractor
 e. Charges
14. It refers to any business entity, association, or cooperative registered under the provisions of R. A.
No. 6810.
 a. Corporation
 c. Contractor
 e. Charges
15. It means one whose business is to buy and sell merchandise, goods, and chattels as a merchant. He
stands immediately between the producer or manufacturer and the consumer and depends for his
profit not upon the labor he bestows upon his commodities but upon the skill and foresight with which
he watches the market.
 a. Gross Sales or Receipts
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator

1. b 6. e 11. e
2. d 7. a 12. c
3. a 8. d 13. a
4. c 9. c 14. d
5. b 10. b 15. b
Mobilization
Philippine Board Reviewer | LTOM | Book 5 | Chapter 2 | 15 Questions
Chapter 2. Business and Other Local Taxes
1. It means a charge fixed by law or ordinance for the regulation or inspection of a business or activity.
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator
2. It is a right or privilege, affected with public interest which is conferred upon private persons or
corporations, under such terms and conditions as the government and its political subdivisions may
impose in the interest of public welfare, security, and safety.
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator
3. It included the total amount of money or its equivalent representing the contract price, compensation
or service fee, including the amount charged or materials supplied with the services and the deposits
or advance payments actually or constructively received during the taxable quarter for the services
performed or to be performed for another person.
 b. Dealer
 c. Franchise
 d. Fee
 e. Operator
4. It includes every person who, by physical or chemical process, alters the exterior texture or form or
inner substance of any raw material or manufactured or partially manufactured product in such manner
as to prepare it for special use or uses to which it could not have been put in its original condition.
 a. Marginal Farmer or Fisherman
 b. Manufacturer
 c. Municipal Waters
 d. Motor Vehicle
 e. Businessman
5. It refers to an individual engaged in subsistence farming or fishing which shall be limited to the sale,
barter or exchange of agricultural or marine products produced by himself and his immediate family,
and whose annual net income from such farming or fishing does not exceed Php 50,000.00 or the
poverty line established by NEDA for the particular region or locality, whichever is higher.
 b. Manufacturer
 e. Businessman
6. It means any vehicle propelled by any power other than muscular power using the public roads, but
excluding road rollers, trolley cars, street sweepers, sprinkles, lawn mowers, bulldozers, graders,
forklifts, amphibian trucks, and cranes.
 b. Manufacturer
 e. Businessman
7. It include streams, lakes, tidal waters within the municipality, marine waters included between two
lines drawn perpendicularly to the general coastline from points where the boundary lines of the
municipality or city touch the sea at low tide and a third line parallel with the general coastline and 15
kilometers from it.
 b. Manufacturer
 e. Businessman
8. It includes the owner, manager, administrator, or any other person who operates or is responsible
for the operation of a business establishment or undertaking.
 a. Residents
 b. Peddler
 c. Persons
 d. Operator
 e. Civilian
9. It means any person who, either for himself or on commission, travels from place to place and sells
his goods or offers to sell and deliver the same.
 a. Residents
 b. Peddler
 c. Persons
 d. Operator
 e. Civilian
10. They refer to every natural or juridical being, susceptible of rights and obligations or of being the
subject of legal relations.
 a. Residents
 b. Peddler
 c. Persons
 d. Operator
 e. Civilian
11. It refer to natural persons who have their habitual residence in the province, city, or municipality
where they exercise their civil rights and fulfill their civil obligations, and to juridical persons for which
the law or any other provisions creating or recognizing them fixes their residence in a particular
province, city or municipality.
 a. Residents
 b. Peddler
 c. Persons
 d. Operator
 e. Civilian
12. It means a sale where the purchaser buys the commodity for his own consumption irrespective of
the quantity of the commodity sold.
 a. Wharfage
 b. Wholesale
 c. Retail
 d. Vessel
 e. Operator
13. It includes every type of boat, craft, or other artificial contrivance used, or capable of being used, as
means of transportation on water.
 a. Wharfage
 b. Wholesale
 c. Retail
 d. Vessel
 e. Operator
14. It means a fee assessed against the cargo of a vessel engaged in foreign or domestic trade based on
quantity, weight, or measure received and/or discharged by vessel.
 a. Wharfage
 b. Wholesale
 c. Retail
 d. Vessel
 e. Operator
15. It means a sale where the purchaser buys or imports the commodities for resale to persons other
than the end user regardless of the quantity of the transaction.
 a. Wharfage
 b. Wholesale
 c. Retail
 d. Vessel
 e. Operator

1. d 6. d 11. a
2. c 7. c 12. c
3. a 8. d 13. d
4. b 9. b 14. a
5. a 10. c 15. b

Local Government Fiscal Organization and Local Treasurer Duties

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#1 BCLTE - LTOM Book 1 Chapter 1

Chapter 1. Fiscal Organization of Local Governments

Passing Score: 12 (80%)

20. Provincial/City/Municipal Treasurer and Assistant Provincial/City/Municipal Treasurer may avail of

Passing Score: 16 (80%)

Chapter 4. The Roles and Responsibilities of Local Treasurers

Chapter 5. Other Roles of the Local Treasurer

9. The members of the Bids and Awards Committee shall be:

 a. Bids and Awards Committee

15. The procedure for bonding are as follows except:

20. Approved fidelity bonds are valid:

Passing Score: 16 (80%)

8. Approved tax ordinances and revenue measures shall be published within:

Passing Score: 12 (80%)

5. It refers to a shortfall of revenues against disbursements.

Passing Score: 12 (80%)

Chapter 2. Collection of Revenues and Other Receipts

5. The following are Accountable Forms with money value except:

10. The Treasurer shall maintain the following cashbooks except:

Passing Score: 16 (80%)

Chapter 1. Concept of Funds

1. The following are the general classification of funds except:

Chapter 2. Concept of Appropriation, Allotment, Obligation and Expenditure

9. The following are the general classifications of appropriations except:

Passing Score: 16 (80%)

Chapter 2. Concept of Appropriation, Allotment, Obligation and Expenditure

8. This signifies unreasonable expense or expenses incurred at an immoderate quantity or exorbitant

10. The following are considered irregular expenditures except:

11. The following expenditures are considered unnecessary except:

14. The following expenditures are considered excessive except:

15. The following expenditures are considered extravagant except:

Passing Score: 12 (80%)

Chapter 3. Disbursements of Local Funds

2. Disbursements of public funds shall be guided by the following prohibitions except:

10. The cash advance shall be supported by which document(s):

Passing Score: 12 (80%)

Chapter 3. Disbursements of Local Funds

7. The following are classified as Personal Services except:

Chapter 5. Sangguniang Kabataan Budget

Passing Score: 12 (80%)

Chapter 1. Fund Management Practices

1. It is the exercise of economic, political and administrative authority to manage a country’s/local

9. It is a schedule of all expenditures to be prepared by the local treasury personnel in charge of

Passing Score: 12 (80%)

9. The disapproval in audit of a transaction, either in whole or in part.

11. The following are examples of fixed assets except:

Passing Score: 12 (80%)

4. The following shall be disallowed as credit to accountable officer’s accountability except:

Passing Score: 12 (80%)

Passing Score: 12 (80%)

Chapter 1. Real Property Taxes

4. It is a valuable addition made to a property or an amelioration in its condition, amounting to more

19. It is land principally devoted to habitation.

Passing Score: 16 (80%)

Chapter 1. Real Property Taxes

7. The following are exempt from real property tax except:

Passing Score: 16 (80%)

Chapter 1. Real Property Taxes

ANSWERS Passing Score: 12 (80%)

Chapter 1. Real Property Taxes

Chapter 2. Business and Other Local Taxes

ANSWERS Passing Score: 12 (80%)