Quiz 5: Revenue Accountinggovernmental Funds

Business

1. A 2. G - Deferred Revenue 3. D 4. F 5. C 6. G - Other Financing Source 7. G - Not reported (revenue of previous year) 8. G - Not separate reported (reimbursement) 9. C 10. A 11. E 12. F (but a negative revenue) 13. G - Deferred Revenue 14. D 15. F 16. C 17. G - Liability to the federal government (may be accounted for in an Agency Fund 18. G - Unearned Revenue 19. G - Deferred inflows-Taxes collected in advance 20. G - Fund liability

1. A 2. B 3. A 4. C 5. B 6. D 7. A 8. D 9. B 10. B

Requirement #1 img Requirement #2 Property Taxes: Revenues deferred from previous year $ 300 Revenues recognized in current year 7,616 Revenues reduced for excess discount (6) Revenues reduced for deferral to next year (480) Revenues recognized for current fiscal year $7,430 Alternative calculation: Cash collected in current year attributable to current fiscal year Transaction #2 (4,730 - 1,300) $3,430 Transaction #3 3,500 Transaction #6 300 Cash to be collected in first 60 days of next fiscal year 200 Cash collected = Revenues Earned $7,430 Penalties and Interest: Revenues deferred from previous year $ 55 Revenues recognized in current year 114 Revenues reduced for deferral to next year (56) Revenues recognized for current fiscal year $113 Alternative calculation: Cash collected in current year attributable to current fiscal year Transaction #3 $ 7 Transaction #6 6 Cash to be collected in first 60 days of next fiscal year 100 Cash collected = Revenues Earned $113