Under the dual-track accounting approach used in the text,which of the following transactions or events would be recorded in the general journal for governmental activities at the government-wide level?
A) Recording the annual budget,property tax levy,and payroll.
B) Recording the property tax levy,issuance of tax anticipation notes,and year-end accrual of interest on long-term debt.
C) Recording the property tax levy,payroll,and encumbrances for purchase orders.
D) Recording the property tax levy,encumbrances for purchase orders,and payment of interest on long-term debt.

Question

Quizplus · Accepted Answer

The dual-track accounting approach separates the government's activities into governmental activities and business-type activities. The governmental activities include things like taxes, governmental expenditures, and infrastructure. The business-type activities include things like enterprise funds, where the government is essentially operating like a business.

Option B is the correct choice because it involves transactions related to both the property tax levy (a governmental activity) and the issuance of tax anticipation notes (a business-type activity). Additionally, the year-end accrual of interest on long-term debt is also a part of the government's financial reporting and would be recorded in the general journal for government-wide activities.

Option A only includes recording the annual budget, property tax levy, and payroll, which are all governmental activities. Option C also only includes governmental activities, but adds encumbrances for purchase orders, which would be recorded in the general journal for governmental activities at the fund level, not at the government-wide level. Option D includes encumbrances for purchase orders and payment of interest on long-term debt, which are both recorded in the general journal for governmental activities at the fund level, not at the government-wide level.

Under the Dual-Track Accounting Approach Used in the Text,which of the Following