Why do you need to study GA?

1. To know how to read and understand published FS by the government

2. To bolster chances of passing the board and Civil Service Exam
3. Gives advantage if you want to be employed in NGOs, sororities & hospitals since they
us GA principles (widens opportunities)
4. Greater chances of employment (budgets & separation of money)
5. Better working condition, retirement benefit. You can only be fired when there is
cause and due process (government is preferred than private employment)
• no government goes bankrupt unlike private companies
Components of a state
1. People
2. Territory
3. Sovereignty
4. Government
Users of GA information for decision making
o Fiscal planners, debit managers, state auditors, agency administrators, legislative
body, and citizens of the country.
• Function of GA to financially manage the resource of every government entity by
Government accounting
➢ Service activity
➢ Provides data on how much taxes and revenues the government should have and
how to spend such
➢ Proved quantitative information mainly financial in nature
➢ Part of public fiscal administration
➢ Provides informational or processal base for macroeconomic planning
o Fiscal planners use information to plan spending and revenues and
expenditures by Development Budget Coordination Committee
Development Budget Coordination Committee
➢ Representative of NEDA (National Economic Development Authority)
o National planning arm of the president
➢ Department of finance
➢ BSP (determines external value of peso and controls inflation)
➢ DBM (Department of Budget and Management)
o Combines all proposals from different government agencies for the
president’s consideration
o Together with NEDA plan how to allocate resources
 Terms Definition

Budget List of expenditures

Debt Managers Uses AI to monitor status of borrowings

Agency administrators Check and control agency expenditures

Legislative body Approves budget for executive body

Check progress of financial programs
AI useful in framing finance laws

Nature of GA
1. Both a process and a system
2. Series of activities
➢ Bookkeeping, posting, grouping and classifying similar items, preparation of
periodic reports and analysis
Accounting as a system – composed of different components
Elements of the system
1. Accounting device – to record analyzed data through accounts)
2. Chart of accounts/ Accounting framework
3. Accounting procedures – journal entries
4. Accounting Methods – manual or mechanical
➢ Devices in handling and storing data in accounting records
5. Books of accounts/Accounting records
6. Accounting standards – provide guidelines to record transactions uniformly