Multiple Choice Questions Identify the best answer to each

question
Multiple Choice QuestionsIdentify the best answer to each question:1. Each of the following
criteria is a factor when determining Special Revenue Fund property tax revenue recognition
except:a. Whether the taxes collected were for future fiscal years’ taxes.b. Whether the taxes
were collected no later than 60 days following the fiscal year being reported.c. Whether the
taxes collected were prior year taxes and were collected not later than 60 days after the
beginning of the current year.d. Whether the property taxes receivable are current or
delinquent.2. Property taxes billed but not collected by the end of the fiscal period or within 60
days following the end of the fiscal period should bea. Charged to bad debt expense.b.
Reported as deferred revenues, a deferred inflow.c. Reported as unearned revenues, a
liability.d. Reported as revenues as long as the taxes are expected to be collected within the
next year.3. Wakefield Village levies $6,255,000 in property taxes at the beginning of its fiscal
year. Two percent is deemed to be uncollectible. The proper general ledger journal entry that
would be made when the taxes are levied would bea. Debit Taxes Receivable $6,255,000;
credit Tax Revenues $6,255,000.b. Debit Taxes Receivable $6,255,000; credit Tax Revenues
$6,129,900; credit Allowance for Uncollectible Taxes $125,100.c. Debit Taxes Receivable
$6,129,900; credit Tax Revenues $6,129,900.d. Either a or c—Taxes Receivable may be
recorded at the levy amount or only at the net realizable value.4. Which of the following
statements reflects the proper accounting treatment for grant revenues?a. Unrestricted grants
are recognized as revenue in governmental funds when cash is received and appropriate
expenditures are incurred.b. Restricted grants are recognized as revenue in governmental funds
when cash is received.c. Restricted grants are recognized as revenue in governmental funds as
eligibility requirements and the availability criteria are met.d. All grants are recognized as
revenues in the period awarded by the grantor—without regard to timing of expenditures or cash
receipt.5. Which of the following are governmental fund revenues that are typically recognized
only as cash is collected?a. Speeding fines.b. Property taxes.c. Sales taxes.d. Sales of general
capital assets.6. GASB Statement No. 31 requiresa. All investment income, including increases
or decreases in the fair value of all investments that are reported at fair value, to be reported as
revenue in the operating statement.b. Changes in the fair value of investments to be reported
separately from interest and dividend income that has been earned.c. All investments to be
adjusted to their fair value for reporting purposes.d. Governmental entities to report changes in
the fair value for investments only if the change is a reduction in the value of the investment
portfolio overall.7. Which of the following statements regarding the accounting and reporting
requirements for governmental fund investments is false?a. Certain governmental fund
investments may be reported at amortized cost rather than fair value.b. Many general
government investments are exempt from fair value standards.c. Money market investments
with remaining maturities of less than one year as of the end of the reporting period are exempt
from fair value reporting standards.d. A change in the fair value of investments is reported in
revenue, whether the change is an increase or a decrease.8. If a government has an
established legal claim associated with a revenue source, but has not collected any of the
revenues, governmental fund revenuesa. Should be recognized.b. Should be recognized if the
resources also are legally usable.c. Should be recognized at the point the revenues are
collected.d. Should be recognized when collected if they are also legally usable.9. If a

Unlock answers here solutiondone.online