A city’s General Fund records expenditures for uncollectable general government property tax revenues?

a. When the property taxes are levied

b. When property taxes are written off as uncollectable

c. Never; no expenditures would be recorded

d. When current property tax receivables are reclassified as delinquent

2.

Which of the following year-end financial statements must be prepared by State and Local Government (“SLG”) Government Funds?

	a.	Statement of Revenues, Expenditures, and Changes in Fund Balance
	b.	Statement of General Government Capital Assets and Long-term Liabilities
	c.	Statement of Cash Flows
	d.	Comprehensive Annual Financial Report

3.

The Purchases Method of accounting for inventory in Government Funds

	a.	Requires a debit to a current asset account for the cost of inventory when it is purchased
	b.	Can be used with either a Perpetual or Periodic inventory tracking system
	c.	Requires a credit to a current asset account when inventory from a stock of supplies is issued to a user department
	d.	Requires a debit to expenditures for the cost of inventory when the inventory is purchased

4.

A city acquired a new police car from a vendor on 4/30/21. The city had issued a purchase order to the vendor on 3/1/21 in the amount of $55,000. The city paid the vendor $56,000 in cash for the actual cost of the police car on 4/30/21. The police car’s useful life is expected to be 4 years with a salvage value of $4,500. This transaction would include which of the following journal entries on 4/30/21?

	a.	GCA: Capitalize the $55,000 encumbrance value of the police car
	b.	General Fund: debit encumbrances outstanding $55,000 and credit encumbrances $55,000
	c.	General Fund: debit capital outlay expenditures $55,000, debit encumbrances differential $1,000, and credit cash $56,000
	d.	GCA: Capitalize $51,500 net book value of the police car

Answer rating: 100% (QA)

Answer 1b When property taxes are written off as uncollectable The citys General Fund records expend... View the full answer