Gov&NFP - Chapter 4
Understanding Modified Accrual Accounting
Test your knowledge of modified accrual accounting with this comprehensive quiz designed for students and professionals alike. Delve into key concepts surrounding revenue recognition, property taxes, and grant revenues.
- 11 engaging questions
- Multiple choice and checkbox formats
- Focus on governmental accounting principles
Under the modified accrual basis of accounting , revenues cannot be recognized
Until cash has been collected
Unless they will be collected within 60 days of year-end
Until they are subject to accrual
Until they are measurable and available
"Available" (as in 'measurable and available") means
Available to finance expenditures of the current period
Subject to accrual
Collectible
Available for appropriation
Property taxes are an example of
An imposed exchnage transaction
An imposed nonexchange transaction
A derived transaction
A government-mandated nonexchange transaction
To be considered "available", property taxes must have been collected either during the government's fisccsal year or within
The time it takes for the government to liquidate its obligations from the prior year
30 days of year-end
60 days of year-end
The following fiscal year
For its fiscal year ending September 30, 2017, Twin City levied $500 million in property taxes. It collected taxes applicable to fiscal 2017 as follows: June 1, 2016, through Sept. 30, 2016 $20 Oct. 1, 2016, through Sept. 30, 2017 $440 Oct. 1, 2017, through Nov. 30, 2017 $15 Dec. 2017 $4 . 25. The city estimates that $10 million of the outstanding balance will be uncollectible. For the fiscal year ending Sept. 30, 2017, how much should Twin City recognize in property tax revenue (in millions) in its general funds?
$440
$460
$475
$490
26. Assume the same facts as in the previous example. How much should Twin City recognize in property tax revenue in its government-wide statement of activities?
$440
$460
$475
$490
27. A school district received property taxes in advance of the year in which they were due and for which they were budgeted. Such taxes should be recognized as
Revenue
A liability
Deferred revenue
A deferred inflow of resources
28. Central City was awarded two state grants during its fiscal year ending Sept. 30, 2017: a $2 million block grant that can be used to cover any operating expenses incurred during fiscal 2018, and a $1 million grant that can be used any time to acquire equipment for its police department. For the year ending Sept. 30, 2017, Central City should recognize in grant revenue in its fund financial statements:
$0
$1
$2
$3
29. Assume the same facts as in the previous example. How much should the city recognize in grant revenues in its government—wide statements?
$0
$1
$2
$3
30. Assuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its governmental fund statements
When the underlying sales transaction takes place
On the date the merchant must remit the taxes to the government
On the date the merchant must file a tax return
When the taxes are received by the government
31. Assuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its government-wide statements
When the underlying sales transaction takes place
On the date the merchant must remit the taxes to the government
On the date the merchant must file a tax return
When the taxes are recceived by the government
{"name":"Gov&NFP - Chapter 4", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Test your knowledge of modified accrual accounting with this comprehensive quiz designed for students and professionals alike. Delve into key concepts surrounding revenue recognition, property taxes, and grant revenues.11 engaging questionsMultiple choice and checkbox formatsFocus on governmental accounting principles","img":"https:/images/course3.png"}
More Quizzes
Accounting 1 / mid term
3015190
Chapters 8
1890
Accounting Exam 2 True or False Prep
1587
Financial Accounting
1059
Holi
17826
ACCT Exam 2: ch5-6 concepts
693469
Week 1 - An Overview of Auditing
10517
Accounting Study Guide
1058
Chapter 1 - Accounting in Action
1059
Poll or vote
10520
IC 26 CHAPTER 1
10591
101_MAnagerial Accounting
15851