A city levies a 2 percent sales tax.Sales taxes must be remitted by the merchants to the City by the twentieth day of the month following the month in which the sale occurred.Cash received by the city related to sales taxes is as follows: $\begin{array}{ll} \text { Amount received } 1 / 20 / 14 \text {, applicable to December } 2013 \text { sales } & \$ 100 \\ \text { Amount received } 2 / 20 / 14 \text {, applicable to January } 2014 \text { sales } & \$ 30 \\ \text { Amount received during } 2014 \text { related to February-November } 2014 \text { sales } & \$ 400 \\ \text { Amount received } 1 / 20 / 15 \text { for December } 2014 \text { sales } & \$ 110 \\ \text { Amount received } 2 / 20 / 152 \text { for January } 2014 & \$ 40 \end{array}$ Assuming the city uses the same period to define "available" as the maximum period allowable for property taxes,what amount should it recognize in the governmental fund financial statements as sales tax revenue for the fiscal year ended 12/31/14?

A) $430. B) $530. C) $540. D) $550. A) $430. B) $530. C) $540. D) $550.

During 2014,a state has the following cash collections related to state income taxes $\begin{array}{ll} \text { Payroll withholdings and estimated payments related to 2014 income } &\$ 360 \\ \text {4 / 15 / 14 Balance of 2013 net of \$ 10 refunds) income taxes } &\$ 40 \\ \text {1 / 15 / 15 payroll withholdings and estimated payments related to 2014 income } &\$ 30 \\ \text { 2 / 15 / 15 payroll withholdings and estimated payments related to 2014 income } &\$ 35 \\ \text { 3 / 15 / 15 payroll withholdings and estimated payments related to 2015 income} &\$ 25 \\ \text { 4 / 15 / 15 Balnce of 2014 net of \$ 5 refunds) income taxes } &\$ 45 \\ \end{array}$ Assuming that the state defines "available" as the maximum period allowable for property taxes,what is the amount of revenue that will be recognized in the 2014 government-wide financial statements related to state income taxes?

A) $400. B) $475. C) $430. D) $465. A) $400. B) $475. C) $430. D) $465.

Exam 4: Recognizing Revenues in Governmental Funds

A local government began the year with a portfolio of securities with an historical cost of $1,200 and a fair value of $1,240.During the year the government acquired an additional security at a cost of $260 and sold for $200 a security that had an historical cost of $172 and a fair value at the beginning of the year of $190.At the end of the year,the securities portfolio had a fair value of $1,330.The amount that should be recognized on the financial statements for the year as investment income is

(Multiple Choice)

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Question 21

Under GAAP,investment income for governments must include

(Multiple Choice)

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Question 22

Governments should recognize revenue from donated capital assets that will be sold to support the government's programs at which amount in their government-wide financial statements?

(Multiple Choice)

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Question 23

Under the accrual basis of accounting used by governments,investment revenues for the current period should include

(Multiple Choice)

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Question 24

A city levies a 2 percent sales tax.Sales taxes must be remitted by the merchants to the City by the twentieth day of the month following the month in which the sale occurred.Cash received by the city related to sales taxes is as follows: Amount received 1/20/14 , applicable to December 2013 sales \ 100 Amount received 2/20/14 , applicable to January 2014 sales \ 30 Amount received during 2014 related to February-November 2014 sales \ 400 Amount received 1/20/15 for December 2014 sales \ 110 Amount received 2/20/152 for January 2014 \ 40 Assuming the city uses the same period to define "available" as the maximum period allowable for property taxes,what amount should it recognize in the governmental fund financial statements as sales tax revenue for the fiscal year ended 12/31/14?

(Multiple Choice)

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Question 25

Ad valorem taxes are taxes that are based on value.

(True/False)

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Question 26

For fund financial statements,the measurement focus and basis of accounting used by governmental fund types are

(Multiple Choice)

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Question 27

The revenue-recognition issues facing governments are generally focused on the exchange transaction earning process,similar to those of businesses.

(True/False)

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Question 28

Under the modified accrual basis of accounting,imposed nonexchange revenues such as fines)should be recognized

(Multiple Choice)

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Question 29

If an entity elects to focus on all economic resources,then it should adopt a modified accrual basis of accounting.

(True/False)

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Question 30

Under the accrual basis of accounting,gains and losses on disposal of capital assets

(Multiple Choice)

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Question 31

A city is the recipient of a cash bequest of $500,000 that must be used to plant flowers and shrubs in the city parks.During the year only $200,000 is actually received from the bequest and $150,000 is spent on shrubs.The amount that should be recognized as revenue by the city in its government-wide financial statements in the current year is

(Multiple Choice)

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Question 32

The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because

(Multiple Choice)

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Question 33

Governmental activities tend to derive the majority of their revenues from exchange transactions.

(True/False)

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Question 34

Sales taxes are taxpayer assessed,that is,parties other than the beneficiary government determine the tax base.

(True/False)

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Question 35

Reimbursement-type grant revenues are recognized in the accounting period in which

(Multiple Choice)

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Question 36

During 2014,a state has the following cash collections related to state income taxes Payroll withholdings and estimated payments related to 2014 income \ 360 4 / 15 / 14 Balance of 2013 net of \ 10 refunds) income taxes \ 40 1 / 15 / 15 payroll withholdings and estimated payments related to 2014 income \ 30 2 / 15 / 15 payroll withholdings and estimated payments related to 2014 income \ 35 3 / 15 / 15 payroll withholdings and estimated payments related to 2015 income \ 25 4 / 15 / 15 Balnce of 2014 net of \ 5 refunds) income taxes \ 45 Assuming that the state defines "available" as the maximum period allowable for property taxes,what is the amount of revenue that will be recognized in the 2014 government-wide financial statements related to state income taxes?

(Multiple Choice)

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Question 37

Under the modified accrual basis of accounting,gains and losses on disposal of capital assets

(Multiple Choice)

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Question 38

Under GAAP,property taxes levied in one fiscal period to finance the activities of the following fiscal period are recognized as revenue in the governmental fund financial statements

(Multiple Choice)

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Question 39

The budgetary measurement focus of governments is determined by applicable state or local laws.

(True/False)

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Question 40

Showing 21 - 40 of 57

Under GAAP,investment income for governments must include

Governments should recognize revenue from donated capital assets that will be sold to support the government's programs at which amount in their government-wide financial statements?

Under the accrual basis of accounting used by governments,investment revenues for the current period should include

Ad valorem taxes are taxes that are based on value.

For fund financial statements,the measurement focus and basis of accounting used by governmental fund types are

The revenue-recognition issues facing governments are generally focused on the exchange transaction earning process,similar to those of businesses.

Under the modified accrual basis of accounting,imposed nonexchange revenues such as fines)should be recognized

If an entity elects to focus on all economic resources,then it should adopt a modified accrual basis of accounting.

Under the accrual basis of accounting,gains and losses on disposal of capital assets

The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because

Governmental activities tend to derive the majority of their revenues from exchange transactions.

Sales taxes are taxpayer assessed,that is,parties other than the beneficiary government determine the tax base.

Reimbursement-type grant revenues are recognized in the accounting period in which

Under the modified accrual basis of accounting,gains and losses on disposal of capital assets

Under GAAP,property taxes levied in one fiscal period to finance the activities of the following fiscal period are recognized as revenue in the governmental fund financial statements

The budgetary measurement focus of governments is determined by applicable state or local laws.

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