ACCT 4421 Exam 1: ch 4 Questions and
Answers 100% Solved
fines Correct Answ_amounts assessed by courts against those guilty of statutory offenses and
neglect of official duties (parking tickets); recognized when govt has collected the cash or has an
enforceable claim (after protest period expires)
forfeits Correct Answ_arise form deposits or bonds made by contractors, accused felons, and
others to assure performance on contracts or appearance in court
derived tax revenues Correct Answ_(recognition standard)- recognize when the underlining
exchange transaction takes place; recognize revenue for govt funds when measurable and
available
T Correct Answ_GASB recommends govt's base amount of income to be cognized on the
amount of withholdings and estimated tax payments received during the year
govt mandated AND voluntary non-exhchange Correct Answ_(recognition standard)-
revenue from these transactions should be recognized when all eligible requirements including
time requirements have been met and the revenues are both measurable and available
, govt mandated AND voluntary non-exhchange Correct Answ_(recognition standard) govt
mandated AND voluntary non-exhcnage; if grant is a reimbursement grant, then recognize when
qualifying expenditures have been made by the recipient organization
restricted grants Correct Answ_payments intended for designated purposed, projects or
activities: most common; can be mandatory or voluntary
unrestricted grants Correct Answ_payments are not restricted
contingent grants Correct Answ_contingent upon specified occurrence or action on the part
of the recipient
entitlements Correct Answ_payments, usually from higher-level govt's to which a recipient is
automatically entitled to a determined amount per a specified formula
shared revenues Correct Answ_revenues raised by one govt and shared w other govt's on a
predetermined basis (states w cities)
Answers 100% Solved
fines Correct Answ_amounts assessed by courts against those guilty of statutory offenses and
neglect of official duties (parking tickets); recognized when govt has collected the cash or has an
enforceable claim (after protest period expires)
forfeits Correct Answ_arise form deposits or bonds made by contractors, accused felons, and
others to assure performance on contracts or appearance in court
derived tax revenues Correct Answ_(recognition standard)- recognize when the underlining
exchange transaction takes place; recognize revenue for govt funds when measurable and
available
T Correct Answ_GASB recommends govt's base amount of income to be cognized on the
amount of withholdings and estimated tax payments received during the year
govt mandated AND voluntary non-exhchange Correct Answ_(recognition standard)-
revenue from these transactions should be recognized when all eligible requirements including
time requirements have been met and the revenues are both measurable and available
, govt mandated AND voluntary non-exhchange Correct Answ_(recognition standard) govt
mandated AND voluntary non-exhcnage; if grant is a reimbursement grant, then recognize when
qualifying expenditures have been made by the recipient organization
restricted grants Correct Answ_payments intended for designated purposed, projects or
activities: most common; can be mandatory or voluntary
unrestricted grants Correct Answ_payments are not restricted
contingent grants Correct Answ_contingent upon specified occurrence or action on the part
of the recipient
entitlements Correct Answ_payments, usually from higher-level govt's to which a recipient is
automatically entitled to a determined amount per a specified formula
shared revenues Correct Answ_revenues raised by one govt and shared w other govt's on a
predetermined basis (states w cities)
