Exam 4: Governmental Activities - Recognizing Revenues

Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a governmental entity in the current year related to the current year levy will be

Revenues that cannot be classified as general revenues are by default considered program revenues.

A city receives a $200,000 grant from the state to purchase vans to transport physically challenged individuals.During the current year the city receives the entire $200,000 and purchases one bus for $85,000 and issues a purchase order for another van for $80,000.The grant revenue that the city should recognize on the government-wide financial statements in the current year is

In accounting for property taxes, under the modified accrual basis, existing standards provide that, except in unusual circumstances, revenues should be recognized only if cash is expected to be collected within sixty days of year-end.

A City levies a 2% sales tax.Sales tax must be remitted by the merchants to the City by the 20^th day of the month following the month in which the sale occurred.Cash received by the City related to sales tax is as follows: Amount received 1/20/00, applicable to December 1998 sales $ 50 Amount received 2/20/00, applicable to January 2000 sales $ 15 Amount received during 2000 related to February-November 2000 sales $200 Amount received 1/20/01 for December 2000 sales $ 55 Amount received 2/20/01 for January 2001 $ 20 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 government-wide financial statement as sales tax revenue for the fiscal year ended 12/31/00.

Under the modified accrual basis of accounting, fines, license fees, permits, and other miscellaneous revenue are generally recognized

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

As used in governmental accounting, interperiod equity refers to a concept of

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

Under GAAP, income tax revenues should be recognized in the fund financial statements in the accounting period

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

Under the modified accrual basis of accounting used by a governmental entity, investment revenues for the current period should include

Payments made to a state pension plan by the state government on behalf of a local government should

Taxes that are imposed on the reporting government's citizens are considered general revenues, even if they are restricted to specific programs.

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

Unrestricted grant revenues with a time requirement should be recognized in the accounting period in which

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

A City levies a 2% sales tax that is collected for them by the State.Sales tax must be remitted by the merchants to the State by the 20^th day of the month following the month in which the sale occurred.The State has a policy of remitting sales taxes to the City within 30 days of collection by the State.Cash received by the State related to sales tax is as follows: Amount received 1/20/00, applicable to December 1999 sales $ 50 Amount received 2/20/00, applicable to January 2000 sales $ 15 Amount received 3/20/00, applicable to February 2000 sales $ 10 Amount received during 2000 related to March-November 2000 sales $190 Amount received 1/20/01 for December 2000 sales $ 55 Amount received 2/20/01 for January 2001 $ 20 Amount received 3/20/01 for February 2001 $ 5 Assuming the City uses the same period to define "available" as the maximum period allowable for property taxes, what amount should it recognize as sales tax revenue in its government-wide financial statements for the fiscal year ended 12/31/00.

All intergovernmental grants are accounted for in exactly the same way.

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