Refresher Course 2

Mock Board

Name: Date: 06/27/2023

Instructor: Richard R. Barnachea Score:

INSTRUCTIONS: Select the correct answer for each of the following questions. Mark only one answer
for each item by encircling the corresponding letter of your choice.

1. This phase in the national government budgetary process involves the enactment of the General
Appropriation Act by the Congress of the Philippines based on the proposed national budget
submitted by the President of the Republic of the Philippines.
a. Budgte Preparation c. Budget Execution
b. Budget Legislation d. Budget Accountability
2. On January 1, 2023, A, B and C formed ABC Partnership upon contribution of land, building and
cash, respectively, whereby C will have 20% capital interest in the partnership. On the date of
partnership formation, the building is subject to a mortgage payable to be assumed by the
partnership amounting to P300,000. On the same date, the building has a book value of P2,300,000
and fair value of P1,500,000. On the other hand, the land had cost of P2,000,000 and assessed
value of P3,600,000. On January 2, 2023, the partnership was able to sell the land for P4,800,000.
What is the amount of cash actually contributed by C in the partnership?
a. P800,000 c. P1,500,000
b. P1,200,000 d. P1,700,000

Solution:
Capital contribution by A (FV of land) 4,800,000
Capital contribution by B (1,500,000-300,000) 1,200,000
Total contribution by A and B 6,000,000
Divide by capital interest ratio of A and B 80%
Total agreed capitalization of ABC Partnership 7,500,000
Multiply by capital interest ratio of C 20%
Cash contributed by C 1,500,000

2. On January 1, 2023, A, B and C formed ABC Partnership with original total agreed capitalization of
P300,000 by making equal capital contribution. The partners decided to divide the partnership profit
or loss in the ratio of 5:3:2. During the year, A and B made additional investment amounting to
P60,000 and P30,000, respectively, while B and C made drawing amounting to P10,000 and P40,000.
After closing the income summary account, the capital balance of partner B on December 31, 2023
is reported at P150,000. What is the capital balance of Partner A on December 31, 2023?
a. P260,000 c. P220,000
b. P210,000 d. P240,000

Solution:
Capital balance of B, 12/31/2023 150,000
Drawings by B in 2023 10,000
Additional investment by B in 2023 (30,000)
Capital balance of B, 01/01/2023 (300K/3) (100,000)
B’s share in ABC Partnership’s net income in 2023 30,000
Divide by: B’s profit/loss ratio 30%
Net income of ABC Partnerhsip in 2023 100,000

Capital balance of A, 01/01/2023 (300K/3) 100,000

Additional investment by A in 2023 60,000
Partner A’s share in partnership net income
(100K x 50%) 50,000
Capital balance of A, 12/31/2023 210,000

3. On December 31, 2023, ABC Partnership reported the following capital balances: Partner A -
P200,000; Partner B = P300,000; and Partner C - P500,000 with profit or loss ratio of 6:1:3. On
January 1, 2024, D is admitted to ABC Partnership by purchasing 40% of the capital interest of
Partner C at a purchase price of P250,000. What is the capital balance of Partner D on January 1,
2024 after his admission to the partnership?
a. P250,000 c. P300,000
b. P400,000 d. P200,000
 Solution:
Capital balance of Partner C 500,000
Interest of C acquired by Partner D 40%
Capital balance of D after his admission 200,000

4. On December 31, 2023, ABC Partnership reported the following capital balances: Partner A -
P500,000; Partner B - P100,000; and Partner C - P400,000 with profit or loss ratio of 3:5:2. On
January 1, 2024, D is admitted to ABC Partnershipupon investment of P300,000 for 40% capital
interest in the new partnership with total agreed capitalization of P1,400,000. What is the
revaluation of existing assets to be recognized by the partnership as a result of admission of partner
D?
a. Impairment loss of P150,000
b. Positive Asset Revaluation of P100,000
c. Impairment Loss of P160,000
d. Positive Asset Revaluation of P260,000.

Solution:
Total contribution of all partners (500K+100K+400K+300K) 1,300,000
Total agreed capitalization of partnership 1,400,000
Positive asset revaluation 100,000

5. On December 31, 2023, ABC Partnership reported the following capital balances: Partner A -
P200,000; Partner B - P500,000; and Partner C - P300,000 with profit or loss ratio of 6:1:3. On
January 1, 2024, Partner A decided to retire and received P140,000 as payment for his capital
interest. At the date of retirement of Partner A, the assets of ABC Partnership are properly valued.
What is the adjusted capital balance of Partner B after the retirement of Partner A?
a. P490,000 c. P485,000
b. P510,000 d. P515,000

Solution:
Capital balance of B, 12/31/2023 500,000
Share of B in bonus from retiring partner (60,000 x 1/4) 15,000
Capital balance of B after retirement of A 515,000

6. On December 31, 2023, ABC Partnership with profit or loss ratio of 5:4:1 reported its financial
position as follows:

Cash P1,000,000 Liabilities to third person P1,200,000

Receivable from A 200,000 Payable to B 250,000
Other noncash assets 800,000 Payable to C 350,000
A, capital 300,000
B, capital 100,000
C, capital (200,000)

ABC Partnership became bankrupt that eventually resulted to its liquidation. The court-appointed
liquidator sold the other noncash assets and paid P50,000 liquidation expense. At the end of
liquidation, Partner B received P150,000. What is the net proceeds from the sale of other noncash
assets?
a. P500,000 c. P600,000
b. P400,000 d. P300,000

Solution:
Total interest of B in the partnership (250K + 100K) 350,000
Less: Amount received by b after liquidation 150,000
B’s share in the theretical loss including partner’s possible deficit 200,000
Divide by B‘s P/L ratio 40%
Total theoretical loss including possible deficit 500,000
Multiply by C’s P/L ratio 10%
C’s share in theoretical loss including possible deficit 50,000
Less: Total interest of C in partnership (350K-200K) 150,000
Amount received by C after liquidation 100,000

Total amount received by partners (0+150K+100K) 250,000

Liquidation expense paid by liquidator 50,000
 Liabilities to third person paid by liquidator 1,200,000
Total 1,500,000
Less: Beginning cash before liquidation 1,000,000
Net proceeds from sale of noncash assets 500,000

7. On December 31, 2023, ABC Partnership with profit or loss ratio of 2:3:5 reported its financial
position as follows:

Cash P100,000 Liabilities to third person P200,000

Noncash assets 400,000 A, capital 100,000
B, capital 150,000
C, capital 50,000

ABC Partnership became bankrupt. The partnership undergoes installment liquidation. On January
31, 2024, the court-appointed liquidator sold half of the noncash assets at a gain of P50,000. On the
same date, the liquidator paid P20,000 liquidation expense and 3/4 of the liabilities to third persons.
The liquidator also withheld P30,000 cash for future liquidation expense. What is the amount
received by Partner A on January 31, 2023?
a. P60,000 c. P40,000
b. P20,000 d. P80,000

Solution:
Beginning cash 100,000
Net proceeds from sale of non-cash assets
[(400,000 x 1/2) + 50,000] 250,000
Liquidation expenses paid (20,000)
Liabilities paid to third person (200,000 x 3/4) (150,000)
Cash withheld for future liquidation expenses (30,000)
Cash withheld for unpaid liabilities to third persons
(200,000 x 1/4) (50,000)
Cash available for distribution to partners 100,000
Less: Total capital interest of all partners
(100K + 150K + 50K) 300,000
Theoretical loss including maximum possible loss (200,000)

Capital balance of A before liquidation 100,000

Share in theoretical loss (200,000 x 20%) (40,000)
Share in deficit of C (50,000 x 2/5) (20,000)
Amount received by A on 01/31/2024 40,000

Items 8 to 11 are based on the following:

On December 31, 2023, ABC Incorporated became bankrupt. The statement of financial position of the
company as of December 31, 2023 is provided below:

Cash 100,000 Accounts payable P100,000

Inventory 400,000 Salaries payable 60,000
Land 500,000 Income tax payable 30,000
Note payable 50,000
Loan payable 300,000
Mortgage payable 200,000
Contributed capital 420,000
Retained earnings (150,000)

The inventory which has net realizable value of P200,000 secures the loan payable while the land which
has fair value of P310,000 secures the mortgage payable. The court-appointed liquidator incurred and
paid liquidation expenses amounting to P20,000.

8. What is the amount received by the mortgagee from the liquidation of ABC Incorporated?
a. P200,000 c. P100,000
b. P310,000 d. P80,000

Solution:
Cash 100,000
 Free land (310,000 - 200,000) 110,000
Total free assets 210,000
Less: Unsecured claims wih priority
(20K + 60K + 30K) 110,000
Net free assets 100,000
Divide by Unsecured claims without priority
(100K + 50K +100K) 250,000
Recovery rate of unsecured creditors without priority 40%

Amount received by mortgagee (fully secured) 200,000

9. What is the amount received by the lender of loan payable from the liquidation of of ABC
Incorporated?
a. P300,000 c. P400,000
b. P240,000 d. P320,000

Solution:
Net realizable value of inventory 200,000
Recovery amount of unsecured portion of loan
Payable (100,000 x 40%) 40,000
Amount received by lender of loan payable 240,000

10. What is the amount paid by the liquidator to unsecured claims with priority?
a. P90,000 c. P110,000
b. P60,000 d. P80,000

Solution:
Liquidation expenses 20,000
Salaries payable 60,000
Income tax payable 30,000
Amount paid by liquidator to unsecured claims with
Priority 110,000

11. What is the amount received by unsecured creditor without priority?

a. P90,000 c. P40,000
b. P100,000 d. P60,000

Solution:
Accounts payable 100,000
Notes payable 50,000
Unsecured claims without priority 150,000
Multiply by recovery rate for unsecured creditors
Without priority 40%
Amount received by unsecured creditors without priority 60,000

Items 12 and 13 are based on the following:

On December 31, 2022, the reciprocal accounts in the separate books of the Home Office and Lipa
Branch are properly reconciled. On December 31, 2023, the Investment in Lipa Branch account has an
adjusted balance of P200,000. The following unreconciled transactions that occurred during 2023 are
discovered :
 Lipa Branch paid P20,000 loan payable of the Home Office but failed to notify the Home Office.
 Home Office shipped goods to Lipa Branch costing P10,000 but the latter debited the amount twice
to Home Office account.
 Lipa Branch properly reported net loss of P30,000 but the Home Office instead recorded net income
for Lipa Branchin the amount of P30,000.
 Home Office collected 40,000 receivable of Lipa Branch but failed to notify Lipa Branch.
 Home Office remitted P50,000 cash to Lipa Branch but still in transit as of December 31, 2023.

12. What is the adjusted balance of Investment in Lipa Branch account on December 31, 2023?
a. P150,000 c. P120,000
b. P140,000 d. P180,000

Solution:
Unadjusted balance of Investment in Lipa Branch account 200,000
Unrecorded payment of HO loan payable by Lipa Branch (20,000)
 Erroneous recording of Branch;s net loss (60,000)
Adjusted balance of Investment in Lipa Branch 120,000

13. What is the unadjusted balance of Home Office account on December 31, 2023?
a. P140,000 c. P100,000
b. P160,000 d. P150,000

Solution:
Unadjusted balance of home office account 140,000
Erroneous recording of shopment from home office 20,000
Unrecorded collection of Branch’s receivable by HO (40,000)
Adjusted balance of investment in Lipa Branch 120,000

Items 14 to 16 are based on the following:

The following financial data are provided by ABC Incorporated concerning its Home Office and Branch for
the year ended December 31, 2023:

Home Office Branch

Beginning inventory P100,000 P70,000
Shipment to Branch 150,000
Shipment from Home Office P250,000
Purchases from outsiders 500,000 100,000
Ending inventory 120,000 80,000
Sales to third persons 1,000,000 600,000
Operating expenses 300,000 200,000

Prior to 2023, the Home office consistently shipped goods to Branch at 25% above cost. 6/7 of the
beginning inventory of the Branch came from the Home Office while P35,000 of the ending inventory of
the Branch came from the outside suppliers. The Branch employs the FIFO cost accounting system for its
inventories.

14. What is the branch’s reported net income in its separate income statement for the year ended
December 31, 2023?
a. P60,000 c. P80,000
b. P70,000 d. P50,000

Solution:
Sales revenue of branch 600,000
Less: Cost of sales of branch:
Beginning inventory 70,000
Add: Shipment from HO 250,000
Add: Purchases from outsiders 100,000
Total 420,000
Less: Ending Inventory 80,000 340,000
Gross profit 260,000
Less: Operating expenses 200,000
Net income of Branch 2023 60,000

15. What is the understatement of the branch’s reported net income in its separate income statement
for the year ended December 31, 2023?
a. P112,000 c. P100,000
b. P94,000 d. P82,000

Solution:
Overstatement of branch beginning inventory from HO
[(70,000 x 6/7) x 25/125] 12,000
Overstatement of shipment from Ho 100,000
Overstatement of brancg ending inventory from HO
(45,000 x 67/167) (18,000)
Understatement of 2023 branch reported net income 94,000

16. What is the ending inventory to be reported by ABC Incorporated in its external statement of
financial position as of December 31, 2023?
a. P200,000 c. P182,000
b. P188,000 d. P194,000
 Solution:
Ending inventory of HO at lower of cost or NRV 120,000
Ending inventory branch as reported in its separate FS 80,000
Overstatement of brancg ending inventory from HO
(45,000 x 67/167) (18,000)
Ending inventory of ABC at lower of cost or NRV, 12/31/2022 182,000

17. Chelsea, Inc. operates a number of branches in the provinces. On December 31, 2023, its
Pampanga Branch showed a home office account balance of P54,700. The following data are
provided by the accountants of the company:
a. A P24,000 shipment, charged by Home Office to Pampanga Branch, was actually sent to and
retained by Lingayen Branch.
b. A P30,000 shipment intended and charged to Laguna Branch was shipped to Pampanga Branch
and retained by the latter.
c. A P4,000 emergency cash transfer from Lingayen Branch was not taken up in the Home Office
Books.
d. Home Office collects a Pampanga Branch accounts receivable of P7,200 and fail to notify the
branch.
e. Home Office was charged for P2,400 for merchandise returned by Pampanga Branch on
December 30. The merchandise is in transit.
f. Home Office erroneously recorded Pampanga’s branch net income for 2023 at P32,550. The
branch reported a net income of P25,350.

What is the unadjusted balance of the Investment in Pampanga Branch account in the Home Office’s
book on December 31, 2023?
a. P51,100 c. P54,700
b. P40,300 d. P43,500

Solution:

Home Office Investment in Pampanga

Unadjusted balances P54,700 P51,100
a. (24,000)
b. 30,000
c.
d. (7,200)
e. (2,400)
f. (7,200)
Adjusted balances P47,500 P47,500

Items 18 to 19 are based on the following:

On January 1, 2023, Entity A, a small medium enterprise, made an investment in a jointly controlled
Entity C in the amount of P100,000 for 50% capital interest. Entity A incurred transactions costs
amounting to P10,000 in relation to the acquisition of the investment. Entity A has joint control over
Entity C but it will have only the right to the net assets of the said entity. On December 31, 2023, Entity
C reported net income of P40,000 and declared dividends amounting to P30,000. On December 31,
2023, Entity A’s investment in Entity C has fair value of P112,000.

18. Under cost method, what is the book value of Investment in Entity C on December 31, 2023?
a. P112,000 c. P110,000
b. P115,000 d. P100,000

Solution:
Investment cost 100,000
Transaction cost 10,000
Book Value of Investment under cost method, 12/31/2023 110,000

19. What is the net effect in 2023 profit or loss to be reported by Entity A concerning its investment in
Entity C under Fair Value Method?
a. P20,000 net profit c. P5,000 net profit
b. P15,000 net profit d. P17,000 net profit

Solution:
 Transaction costs (10,000)
Dividend income from joint venture (30,000 x 50%) 15,000
Unrealized holding gain on changes in FV (112K-100K) 12,000
Net effect in 2023 profit 17,000

Items 19 and 20 are based on the following:

On January 1, 2023, Entity A and Entity B established Entity C with 60:40 capital interests, respectively.
Despite the ownership interest in Entity C, its relevant activities require unanimous vote of Entity A and
Entity B. The organizing entities will have rights to the assets and obligations for the liabilities, relating
to Entity C. The terms of the contractual agreement between Entity A and Entity B provides for the
following:
 Entity A owns the building and owes the loan payable.
 Entity B owns the land and owes the mortgage payable.
 Other assets and liabilities are owned and owed based on their capital interests ratio.

On December 31, 2023, Entity C reported the following data:

Inventory P1,000,000 Accounts payable P1,500,000
Building 2,000,000 Loan payable 1,000,000
Land 3,000,000 Mortgage payable 500,000
Stockholders’ equity 3,000,000

19. What is the total assets to be reported by Entity A on December 31, 2023 in relation to its interest in
Entity C?
a. P1,800,000 c. P2,000,000
b. P2,600,000 d. P2,400,000

Solution:
Building owned by Entity A 2,000,000
Share of interest of Entity A on co-owned inventory
(1,000,000 x 60%) 600,000
Total assets to be reported by Entity A 2,600,000

20. What is the total liabilities to be reported by Entity B on December 31, 2023 in relation to its
interests in Entity C?
a. P1,200,000 c. P1,400,000
b. P500,000 d. P1,100,000

Solution:
Mortgage payable owed by Entity B 500,000
Share of Entity B on co-owed AP (1,500,000 x 40%) 600,000
Total liabilities to be reported by Entity B 1,100,000

Items 21 to 23 are based on the following:

On July 1, 2022, Walter Inc. sold a television set at an installment price of P100,000. Walter received
P10,000 and old television set with trade-in value of P30,000 as down payment. The fair value of the
traded-in TV is P50,000. The agreement provides that the balance will be paid in equal quarterly
installment starting September 30, 2022. Walter Inc. manufactured the television set at a cost of
P90,000. The customer of Walter Inc. defaulted on the payment of fourth quarterly installment which
resulted to repossession of the television set with appraised value of P10,000. On August 31, 2022, the
repossessed teleevision set was resold by Walter Inc. at a cash price of P25,000 after being reconditioned
at a cost of P6,000.

21. What is the realized gross profit to be recognized by Walter Inc. for the year ended December 31,
2022?
a. P25,000 c. P7,000
b. P20,000 d. P22,500
22. What is the loss on repossession to be recognized by Walter Inc. for the year ended December 31,
2022?
a. P1,250 c. P3,750
b. P5,000 d. P2,500
23. What is the realized gross profit to be recognized by Walter Inc. for the year ended December 31,
2022?
a. P3,750 c. P12,750
b. P15,000 d. P18,750
Items 24 and 25 are based on the following:
On January 1, 2022, a franchisor entered into a franchise agreement with a franchisee. The contract
requires the franchisee to pay a nonrefundable upfront fee of P900,000 at the date of contract signing
and on-going royalty equivalent to 10% of franchisee’s sales revenue. On January 1, 2022, the
franchisee paid the non-refundable upfront fee of P900,000.

The franchise agreement requires the franchisor to render the following separate and distinct
performance obligations:
 Construction of franchisee’s stall with stand alone selling price of P500,000.
 Delivery of 10,000 units of raw materials to franchisee with stand alone selling price of P300,000.
 Allowing the franchisee to use the franchisor’s tradename and trademark for a maximum period of
10 years counted from the date of signing of contract with stand alone selling price of P200,000.

On July 1, 2022, the franchisor completed the construction of the franchisee’s stall which allowed the
franchisee to start its operation. As of December 31, 2022, the franchisor was able to deliver 20,000 unit
of raw materials to the franchisee. For the year ended December 31, 2022, the franchisee reported sales
revenue of P400,000.

24. What is the total revenue to be reported by the franchisor for the year ended December 31, 2022?
a. P620,000 c. P522,000
b. P562,000 d. P580,000
25. Using the same data in number 65, what is the unearned revenue to be reported by the franchisor
on December 31, 2022?
a. P378,000 c. P338,000
b. P420,000 d. P380,000

Items 26 and 27 are based on the following:

On January 1, 2022, an entity entered into a long-term construction contract with fixed contract price of
P5,000,000. The entity billed its client as follows: 30% during 2022, 40% during 2023 and the
remainder at the year of project completion. The following data were provided by the cost accountant of
the entity:

2022 2023 2024

Cumulative costs incurred as of the end of
the year P2,200,000 P3,600,000 P4,800,000
Estimated remaining cost to complete at
the end of the year P3,300,000 P900,000 -

26. What is the excess of construction in progress over progress billings on December 31, 2022 under
percentage of completion method?
a. P500,000 c. P300,000
b. P200,000 d. P400,000
27. What is the excess of construction in progress over progress billings on December 31, 2022 under
cost recovery method?
a. P100,000 c. P300,000
b. P500,000 d. P400,000

Items 28 and 29 are based on the following:

On December 1, 2022, Bongbong Co. delivered 10 boxes of Otap bread and 10 packs of sample bread for
tasting purposes to Family Mart retail store on a consignment arrangement. The retail store does not
take title to the products and has no obligation to pay Bongbong Co. until they are sold to the final
customers. Any unsold products, excluding those that are lost or damaged, can be returned to Bongbong
Co. and the latter has discretion to call products back or transfer products to another customer.

Bongbong Co. manufactures the product at a cost of P5,000 per box of Otap bread and P100 per pack of
sample bread. There is freight collect of P2,000 for the delivery of 10 boxes of Otap bread to Family Mart
but none for the sample bread. The selling price for the Otap product is P8,000 per box for cash sales
and P10,000 per box for credit sales with a term of 2/10, n/30. The Family Mart retail store is entitled to
a 5% commission on cash sales and 10% commission on net credit sales already collected. Bongbong
Co. provides bad debt expense at an estimate of 8% based on ending receivables.

For the month ended December 31, 2022, Family Mart retail store was able to sell to final consumers 3
boxes of Otap bread on cash basis and 5 boxes of Otap bread on account. Also, five packs of sample
bread were consumed by final customers during the tasting period. The customers on account paid to
Family Mart retail store three out of five boxes sold on credit within the discount period but the remainder
continued to be unpaid as of December 31, 2022. At December 31, 2022, Family Mart retail store made
its net remittance to Bongbong Co.

28. Under IFRS 15, what is Bongbong Co.’s net income for 2022 in connection with the consignment
arrangement?
a. P25,560 c. P20,520
b. P21,240 d. P41,140
29. What is the net remittance to Bongbong Co. On December 31, 2022 by Family Mart retail store?
a. P47,260 c. P41,140
b. P45,320 d. P42,240
30. The Philippine Government and SLEX Co. Entered into a concession arrangement for the
constructiona nd operation of Skyway 5 connecting Metro Manila and Batangas Pier. On December
31, 2023, the concession operator constructed the Skyway 5 at a cost of P100,000,000. SLEX Co.
has a right or license to charge users over the term of the arrangement of 50 years. The amounts
to be received by the concession operator are contingent on the extent that the public uses the
Skyway 5. What is the book value of infrastructure asset on December 31, 2023?
a. P100,000,000 c. P96,000,000
b. P98,000,000 d. P94,000,000

Infrastructure asset classified as intangible asset measured at

Cost less accumulated depreciation (100,000,000 - 2,000,000 - 2,000,000) P96,000,000

31. Under PFRS 15, costs incurred to fulfill a contract are recognized as an asset if and also if all of the
following criteria are met, except
a. The costs relate directly to a contract
b. The costs generate or enhance resources of the entity that will be used in satisfying
performance obligations in the future.
c. The costs are reasonably possible to provide future economic benefits to the entity and can be
measured reliably.
d. The costs are expected to be recovered.
32. Under PFRS 15, when shall entity recognize revenue from contract with customers?
a. When it is probable that future economic benefits will flow to the entity and the fair value of the
revenue can be measured reliably.
b. When the entity has already collected the consideration from revenue from contract with
customers.
c. When or as the entity satisfies a performance obligation.
d. When the entity becomes a party to a contract.
33. IFRS 4, Insurance contracts, defines Cedant as
a. The party that has an obligation under reinsurance contract to compensate the policyholder, if
the insured event occurs.
b. The party that has an obligation under an insurance contract to compensate the policyholder, if
the insured event occurs.
c. The party that has a right to compensate under an insurance contract, if the insured event
occurs.
d. The party that has a right to compensate under reinsurance contract, if the insured event
occurs.
34. A feature of service concession arrangement is the public service nature of the obligation undertaken
by the operator. Which of the following is one of the other common features under IFRIC 12,
Service Concession Arrangement?
a. The party that grants the service concession arrangement is a public sector, like government
body.
b. The party that grants the service concession arrangement is a public sector or a private sector
entity to which the responsibility for the service has been devolved.
c. The grantor is responsible for at least some of the management of the infrastructure and
related services.
d. The contract sets the initial prices to be levied by the grantor and regulates price revisions over
the period of the service arrangement.
35. It is the legislative consideration, review and approval of the national budget.
a. Preparation c. Execution
b. Authorization d. Accountability
36. It is the authorization from the Department of Budget and Management to an agency to incur
obligation up to a specified amount that must be within the legislative appropriation.
a. Obligation c. Allotment
b. Appropriation d. Fund release
-End-