ACCT 4421- CH 4 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Under the modified accrual basis of accounting, revenues cannot be recognized - CORRECT
ANSWER - Until they are measurable and available
"Available" (as in "measurable and available") means - CORRECT ANSWER - Available
to finance expenditures of the current period
Property taxes are an example of - CORRECT ANSWER - An imposed nonexchange
transaction
To be considered "Available" property taxes must have been collected either during the
government's fiscal year or within - CORRECT ANSWER - 60 days of year end
For its fiscal year ending September 30, 2011, Twin City levied $500 million in property taxes. It
collected taxes applicable to fiscal 2011 as follows (in millions):
June 1 2010, through September 30, 2010 $20
October 1 2010 through September 30 2011 $440
October 1 2011 through November 30, 2011 $15
December 2011 $4
The city estimates that $10 million of the outstanding balance will be uncollectable. For the
fiscal year ending September 30, 2011, how much should Twin City recognize in property tax
revenue in millions in its general fund? - CORRECT ANSWER - $475
For its fiscal year ending September 30, 2011, Twin City levied $500 million in property taxes. It
collected taxes applicable to fiscal 2011 as follows (in millions):
June 1 2010, through September 30, 2010 $20
October 1 2010 through September 30 2011 $440
October 1 2011 through November 30, 2011 $15
Exam Questions and CORRECT Answers
Under the modified accrual basis of accounting, revenues cannot be recognized - CORRECT
ANSWER - Until they are measurable and available
"Available" (as in "measurable and available") means - CORRECT ANSWER - Available
to finance expenditures of the current period
Property taxes are an example of - CORRECT ANSWER - An imposed nonexchange
transaction
To be considered "Available" property taxes must have been collected either during the
government's fiscal year or within - CORRECT ANSWER - 60 days of year end
For its fiscal year ending September 30, 2011, Twin City levied $500 million in property taxes. It
collected taxes applicable to fiscal 2011 as follows (in millions):
June 1 2010, through September 30, 2010 $20
October 1 2010 through September 30 2011 $440
October 1 2011 through November 30, 2011 $15
December 2011 $4
The city estimates that $10 million of the outstanding balance will be uncollectable. For the
fiscal year ending September 30, 2011, how much should Twin City recognize in property tax
revenue in millions in its general fund? - CORRECT ANSWER - $475
For its fiscal year ending September 30, 2011, Twin City levied $500 million in property taxes. It
collected taxes applicable to fiscal 2011 as follows (in millions):
June 1 2010, through September 30, 2010 $20
October 1 2010 through September 30 2011 $440
October 1 2011 through November 30, 2011 $15
