Question: Identifying Types of Revenue Transactions Required Using the requirements of

Identifying Types of Revenue Transactions

Using the requirements of GASB Statement No. 33, “Accounting and Financial Reporting for Nonexchange Transactions,” classify each of the following independent transactions for the community of Fair Lake into the proper category of revenue presented in the right-hand column.

1. Property taxes were levied by the general fund.
2. The electric utility (enterprise) fund billed the general fund for power usage.
3. The city received a state grant for training its police force in additional security measures of public property.
4. The city estimated its share of locally generated sales taxes that it expects to receive within the next month.
5. The city collected various fines it imposed during the period.
6. The city sold excess office equipment from its municipal headquarters.
7. The city received resources from the state that must be used to pay for local welfare costs.
8. The city received a bequest from a local citizen to buy children's recreational items for the city park.
9. The city collects its share of the local hotel taxes whose proceeds are legislatively required to be used for a new community convention center.
10. The state reimburses the city for specific costs related to extra security training of the city's fire department employees.
11. The city receives its share of funds for environmental improvement resources under a state-required program.
12. The city receives resources from the federal government to acquire new fire-prevention equipment that it has not yet acquired.
13. The city receives grant monies under a state program encouraging cities to make their infrastructure assets wheelchair accessible.
14. A company that manufactures road-repaving materials gives the city a grant for the company to conduct a research project on the durability of various types of road repair materials.

Types of Re
A. Derived tax revenue
B. Imposed nonexchange revenue
C. Government-mandated nonexchange transaction
D. Voluntary nonexchange transaction
E. None of the above

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  • CreatedMay 23, 2014
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