Exam 4: Recognizing Revenues in Governmental Funds

Last year a city received notice of a $150,000 grant from the state to purchase vehicles to transport physically challenged individuals.During the current year the city received the entire $150,000, purchased a bus for $65,000, and issued a purchase order for a van for $60,000.The grant revenue that the city should recognize on the government-wide financial statements in the current year is

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

Ideally, under the accrual basis of accounting, license fees, permits, and other miscellaneous revenue should be recognized

A city that 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 $720,000 (of which 10 percent are estimated to be uncollectible)are levied in October 2013 to finance the activities of the fiscal year 2014.During 2014, cash collections related to property taxes levied in October 2013 were $600,000.In 2015 the following amounts related to the property taxes levied in October 2013 were collected: January $30,000; March, $6,000.For the fiscal year ended 12/31/14, what amount should be recognized as property tax revenues related to the 2013 levy on the governmental fund financial statements?

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: 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?

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

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

Under GAAP, income tax revenues should be recognized in the government-wide financial statements in the accounting period

A government is the recipient of a bequest of a multi-story office building that the government intends to sell to support program activities.The building has a historical cost of $850,000, a book value in the hands of the benefactor of $700,000, and a fair value of $1,050,000.The city had not yet begun to try to sell the building when its annual financial statements were issued.The city should recognize on its governmental fund financial statements, donations revenue of

Unrestricted grant revenues with a time requirement should be recognized

Income taxes are classified as ad valorem taxes.

A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP.Property taxes of $600,000 (of which none are estimated to be uncollectible)are levied in October 2013 to finance the activities of fiscal year 2014.Property taxes are due in two installments June 20 and December 20.Cash collections related to property taxes are as follows: The total amount of property tax revenue that will be recognized in the government-wide financial statements in 2014 is:

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

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?

Which of the following are derived tax revenues?

Current financial resources include cash and receivables but not investments.

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

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

Under the modified accrual basis of accounting, investment revenues for the current period should include

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 after year-end.