Question

1. On June 1, 2020, a school district levies the property taxes for its fiscal year that will end on June 30, 2021. The total amount of the levy is $1,000,000, and 1% is expected to be uncollectible. On levy, $250,000 is collected in June 2020 and another $500,000 is collected in July and August 2010 What is the maximum amount of property tax revenue associated with the June 1, 2020, levy that the school district might report as revenue in the fiscal year ending June 30, 2020? A. $0 B. $750,000 C. $760,000 D. $990,000 2. A city levied $2,000,000 of property taxes for its current fiscal year. The city collected $1,700,000 cash on its taxes receivable during the vear and granted $72,000 in discounts to taxpayers who paid within the legally established discount period. It is expected that the city will collect another $88,000 on these taxes receivable during the first two months of the next fiscal year. One percent of the tax levy is expected to be uncollectible. What amount of governmental fund property tax revenues should the city report for the current fiscal year? A. $1,788,000 B. $1,860,000 C. $1,980,000 D. $2,000,000 3. A county received $3,000,000 from the state. Of that amount, $1,500,000 was received under an entitlement program and was not restricted as to use. The other $1,500,000 was received under a grant agreement that requires the funds to be used for specific health and welfare programs. The county accounts for the resources from both of these programs in a Special Revenue Fund. Expenditures of that fund that qualified under the grant agreement totaled $900,000 in the year that the grant and entitlement were received. What amount of revenues should the county recognize in that year with respect to the entitlement and the grant? A. $900,000 B. $1,500,000 C. $2,400,000 D. $3,000,000 4. A Special Revenue Fund expenditure of $40,000 was initially paid from and recorded in the General Fund. The General Fund is now being reimbursed. The General Fund should report A. Revenues of $40,000. B. Other financing sources of $40,000 C. A $40,000 reduction in expenditures. D. Other changes in fund balances of $40,000. 5. Which of the following statements reflects the proper accounting treatment for grant revenues? A Unrestricted grants are recognized as revenue in governmental funds when cash is received and appropriate expenditures are incurred. B. Restricted grants are recognized as revenue in governmental funds when cash is received C. Restricted grants are recognized as revenue in governmental funds as eligibility requirements and the availability criterion are met. D. All grants are recognized as revenues in the period awarded by the grantor--without regard to timing of expenditures or cash receipt.

Answer 1

1) the correct option is B $750000

Reason :- levy collected in june 2020 = $250000 ; levy collected in july and august 2010 = $500000

hence; maximum amount of property tax revenue associated with june 1 2020 is $250000+$500000 = $750000 .

2) the correct option is A $ 1788000

Reason:- tax collected is $ 170000 and city will also collect $88000 for the first 2 months of the next fiscal year

hence ; property tax revenue is $1788000

3) the correct option is B $1500000

Reason :- the amount of revenue the country should recognize in that year with respect to grant and entitlement is $1500000.

4) the correct option is C A$40000 reduction in expenditure

5)the correct option is D