Question 1

Under the accrual basis of accounting, property tax revenues are recognized

Accepted Answer

A) when they are received in cash. 
B) in the year for which they were levied. 
C) in the year for which they were levied and when collection in cash is reasonably assured. 
D) when they are available to finance expenditures of the fiscal period. 
A) when they are received in cash. 
B) in the year for which they were levied. 
C) in the year for which they were levied and when collection in cash is reasonably assured. 
D) when they are available to finance expenditures of the fiscal period.

Question 2

A city which has a 12/31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP.Property taxes of $600,000 (of which 10% are estimated to be uncollectible)are levied in October 1999 to finance the activities of the fiscal year 2000.During 2000, cash collections related to property taxes levied in October 1999 were $500,000.In 2001 the following amounts related to the property taxes levied in October 1999 were collected: January $25,000; March, $5,000.For the fiscal year ended 12/31/00, what amount should be recognized as property tax revenues related to the 1999 levy on the fund financial statements?

Accepted Answer

A) $600,000. 
B) $540,000. 
C) $525,000. 
D) $500,000. 
A) $600,000. 
B) $540,000. 
C) $525,000. 
D) $500,000.

Question 3

The revenue-recognition issues facing governments are simpler to resolve than those of businesses.

Accepted Answer

A) True 
 B)False

Question 4

Ad valorem taxes are taxes that are based on value.

Accepted Answer

A) True 
 B)False

Under the accrual basis of accounting, property tax revenues are recognized

The revenue-recognition issues facing governments are simpler to resolve than those of businesses.

Ad valorem taxes are taxes that are based on value.

The Government and Not-For-Profit Environment

Fund Accounting

Government Financial Reporting

Governmental Activities - Recognizing Expenditures and Expenses

Governmental Activities - Accounting for Capital Projects and Debt Service

Governmental Activities - Capital Assets and Investments in Marketable Securities

Governmental Activities - Long-Term Obligations

Business-Type Activities and Internal Services

Permanent Funds and Fiduciary Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Special Issues for Not-For-Profit Health Care Providers and Institutions of Higher Education

Auditing Governments and Not-For-Profit Organizations

Financial Analysis

Filters

Exam 4: Governmental Activities - Recognizing Revenues

Under the accrual basis of accounting, property tax revenues are recognized

The revenue-recognition issues facing governments are simpler to resolve than those of businesses.

Ad valorem taxes are taxes that are based on value.

The Government and Not-For-Profit Environment

Fund Accounting

Government Financial Reporting

Governmental Activities - Recognizing Expenditures and Expenses

Governmental Activities - Accounting for Capital Projects and Debt Service

Governmental Activities - Capital Assets and Investments in Marketable Securities

Governmental Activities - Long-Term Obligations

Business-Type Activities and Internal Services

Permanent Funds and Fiduciary Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Special Issues for Not-For-Profit Health Care Providers and Institutions of Higher Education

Auditing Governments and Not-For-Profit Organizations

Financial Analysis

Filters