ACCT 406 Ch 5 General & Special Revenue Funds || with
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The governmental fund balance sheet equation includes the following elements: correct answers
Financial assets, near-term liabilities, deferred inflows of resources, and fund balance.
Other financing sources in governmental-type funds may be defined as: correct answers
Increases in assets of a fund that generally do not increase the net assets of the
government as a whole.
The GASB allows which of the following method(s) to account for inventories and
prepayments? correct answers Purchases method and consumption method
Deferred property tax revenues are a: correct answers Deferred inflows of resources
Deferred inflows are a government's: correct answers Acquisition of net assets that are applicable
to a future reporting period.
A city uses the purchases method of accounting for supplies in the General Fund. How should
the General Fund record a purchase of supplies? correct answers Debit Expenditures-supplies
and credit Vouchers payable
The measurement focus used by governmental fund measures:
a. capital resources
b. financial resources
c. financial resources and capital resources
d. economic resources correct answers b. financial resources
A government would refer to its property tax calendar to determine whether property taxes
receivable at any given time are
a. collectible in part or in full
b. delinquent or current
c. sufficient to finance planned expenditures
d. larger or smaller than those of the prior year correct answers b. delinquent or current
At the time a government levies the property tax, an allowance for uncollectible property taxes is
established so that
a. probable delinquent taxpayers can be identified individually
b. property tax revenues can be reported at a net collectible amount
c. an expenditure for bad debts is recorded in the accounts
d. property tax revenues will exceed the total amount of the levy correct answers b. property tax
revenues can be reported at a net collectible amount
, If a taxpayer fails to pay his property taxes on time and the city decides to foreclose the property,
what accounting entry should the city make?
a. write off the property tax receivable as uncollectible
b. reduce property tax revenues by the amount of the receivable
c. reclassify the property tax receivable account to a delinquent receivable account
d. reclassify the property tax receivable account to a tax lien receivable account correct answers
d. reclassify the property tax receivable account to a tax lien receivable account
At the beginning of the year 2013, a town recorded General Fund property tax receivables of
$600,000. By year-end (December 31), taxpayers had paid a total $575,000. Based on previous
experience, the town expected to collect the $25,000 of delinquent taxes as follows: $10,000 in
January and February of 2014 and $15,000 between March and August of 2014. How much
should the town report as property tax revenue in its General Fund statements for the year 2013?
a. $585,000
b. $600,000
c. $590,000
d. $575,000 correct answers a. $585,000
On January 1, 2013, a city recorded General Fund property tax revenues of $750,000, but made
no provision for uncollectible receivables or tax refunds. During the year, it collected property
taxes of $720,000, wrote off $4,000 as uncollectible, and made tax refunds of $3,000. At year-
end, the city finance director concluded that $10,000 of the delinquent taxes would be collected
in January and February of 2014, $12,000 would be collected later in 2014, and $1,000 would
need to be written off as uncollectible. How much should the city report as property tax revenue
in its General Fund financial statements for the year 2013?
a. $720,000
b. $730,000
c. $742,000
d. $713,000 correct answers b. $730,000
Which of the following best describes the general principle for recognizing property tax revenues
in the General Fund?
a. They should be recognized in the current period to the extent that cash is collected
b. They should be recognized for the entire amount levied for the current period, regardless of
when they are collected in cash
c. They should be recognized in the current period, less appropriate allowances for uncollectible
accounts, tax refunds, and discounts
d. They should be recognized in the current period to the extent collected and also if collected
early in the following year correct answers They should be recognized in the current period to
the extent collected and also if collected early in the following year
