Question: A governmental entity has formally integrated the budget into its accounting records. At year-end the ledger account Revenues from property taxes has a debit balance.

A governmental entity has formally integrated the budget into its accounting records. At year-end the ledger account Revenues from property taxes has a debit balance.

Which of the following is the best explanation for the debit balance?

The entity overestimated property tax revenue when preparing its budget.

The entity underestimated property tax revenue when preparing its budget.

The entity collected more in property taxes than it anticipated.

There is no logical explanation; revenue accounts usually do not have debit balances.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1 . Which of the following is NOT a function of a budget in the governmental environment? a ) Planning. b ) Organizing. c ) Controlling. d ) Evaluating. 2 . For which of the following funds would...

14. A governmental entity has formally integrated the budget into its accounting records. At year-end, before preparing the closing journal entries, the ledger account "Property Tax Revenue" has a...

10) Which of the following accounts is not included in a balance sheet of a governmental fund? a. Investments b. Cash c. Salaries Payable d. Equipment 15) A governmental entity has formally...

The Yarrow City Council has formally integrated the budget into its accounting records. At year-end the ledger account "Estimated Revenues" has a debit balance. Which of the following is the best...

The Yarrow City Council has formally integrated the budget into its accounting records. At year - end the ledger account "Estimated Revenues" has a debit balance. Which of the following is the best...

. A governmental entity has formally integrated the budget into its accounting records. At the end of the third quarter the ledger account Expenditures - - salaries has a $ 1 0 0 , 0 0 0 debit...

A governmental entity has formally integrated the budget into its accounting records. At the end of the third quarter the ledger account Expenditures--salaries has a $100,000 debit balance. Which of...

Please assist with questions 6,7 and 8. Kindly show detailed workings Chapter 17 - Governmental Entities: Introduction and General Fund Accounting Chapter 17 Governmental Entities: Introduction and...

The Mustard City fund has formally integrated the budget into its accounting records. At the end of the third quarter the ledger account "Expenditures - - salaries" has a $ 1 0 0 , 0 0 0 debit...

Ms. Zadina is being considered for promotion to partner at her CPA firm. Her sister is the controller for Firm A, which is audited by Ms. Zadinas CPA firm. Because of potential independence issues,...

XYZ is trading at $100, a 6 month call option on XYZ struck at $90 is priced at $15. 6 month LIBOR is 3% per annum and XYZ has a 1% per annum dividend yield. a) What is the intrinsic value of the...

What are the mega and task environment issues that affect an organization?

Calculate the minimum and maximum takt time for the given

Assess Occupational Information Network (O*NET) and its importance to human resource (HR) management.

Assess three steps in the selection process.

Identify the steps in job analysis.