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1. Under the modified accrual basis of accounting,...

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1. Under the modified accrual basis of accounting, revenues cannot be recognized a. Until cash has been collected b. Unless they will be collected within sixty days of year-end c. Until they are subject to accrual d. Until they are measurable and available 2. ??Available?? (as in ??measurable and available??) means a. Available to finance expenditures of the current period b. Subject to accrual c. Collectible d. Available for appropriation 3. Property taxes are an example of a. An imposed exchange transaction b. An imposed nonexchange transaction c. A derived transaction d. A government-mandated nonexchange transaction 4. To be considered ??available,?? property taxes must have been collected either during the government?s fiscal year or within a. The time it takes for the government to liquidate its obligations from the prior year b. Thirty days of year-end c. Sixty days of year-end d. The following fiscal year 5. For its fiscal year ending September 30, 2007, Twin City levied $500 million in property taxes. It collected taxes applicable to fiscal 2007 as follows (in millions): June 1, 2006, through September 30, 2006 $ 20 October 1, 2006, through September 30, 2007 440 October 1, 2007, through November 30, 2007 15 December 2007 4 The city estimates that $10 million of the outstanding balance will be uncollectible. For the fiscal year ending September 30, 2007, how much should Twin City recognize in property tax revenue (in millions) in its general fund? a. $440 b. $460 c. $475 d. $490 6. Assume the same facts as in the previous example. How much should Twin City recognize in property tax revenue(in millions) in its government-wide statement of activities? a. $440 b. $460 c. $475 d. $490 7. Central City was awarded two state grants during its fiscal year ending September 30, 2007: a $2 million block grant that can be used to cover any operating expenses incurred during fiscal 2008, and a $1 million grant that can be used any time to acquire equipment for its police department. For the year ending September 30, 2007, Central City should recognize in grant revenue in its funds statements (in millions) a. $0 b. $1 c. $2 d. $3 8. Assume the same facts as in the previous example. How much should the city recognize in grant revenue in its government-wide statements? a. $0 b. $1 c. $2 d. $3 9. Assuming that a government will collect its sales taxes in sufficient time to satisfy the ??available?? criterion, it would ordinarily recognize revenue from sales taxes in its governmental fund statements a. When the underlying sales transaction takes place b. On the date the merchant must remit the taxes to the government c. On the date the merchant must file a tax return d. When the taxes are received by the government 10. Assuming that a government will collect its sales taxes in sufficient time to satisfy the ??available?? criterion, it would ordinarily recognize revenue from sales taxes in its government-wide statements a. When the underlying sales transaction takes place b. On the date the merchant must remit the taxes to the government c. On the date the merchant must file a tax return d. When the taxes are received by the government 11. The recognition of revenue from fines does not necessarily reflect the amount ??earned?? by merely issuing tickets. In August 2008, the last month of its fiscal year, GoldwaitheTownship issued $88,000 worth of tickets for parking and traffic violations. Of these, the township collected $45,000. It expects to collect an additional $20,000 within sixty days of the close of the fiscal year and to collect $3,000 subsequent to that. It will have to write off the balance. The tickets are due; the protest period expires on September 15. 1. How much revenue should the township recognize from the tickets issued in August 2008? Explain. 2. How might your answer change with respect to the township?s government-wide statements?

 

Paper#6797 | Written in 18-Jul-2015

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